A Growing Relationship Between Natural Gas and Oil

- The relationship between oil and natural gas is constantly growing.

“They’re getting much more out of the oil using the gas in the operation to get more oil and not wasting the gas,” said Stephen Taylor, the President and CEO of Natural Gas Services Group.

That’s because many companies here in the Permian Basin sell their natural gas. Others burn the gas, but an increasing number of companies are now using the gas to get more oil.

“Instead of selling the gas out here it's circulating the gas back down the hole of the oil well to help lift more gas out,” Taylor said.

When companies drill for oil, they first have to separate the oil, water and natural gas.

Then, with the help of a compressor, gas is circulated back in the hole to lift more oil out. The process is called gas lifting.

“Gas lifting has become more popular here in the last 4 to 5 years,” Taylor said. “Especially in these oil shell type of wells.”

It’s a technique that has been around for years but has become more popular and prevalent today.

“It helps lift more oil out and oil is the commodity and demand right now,” Taylor said. 

Increasing the profits and expanding the natural gas industry.

“All the gas that's been found in the country in the last few years has driven a lot of industries to start using the gas,” Taylor said. 

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