Lost Gas Revenues
Every MCF of gas used for instrument air purposes is an MCF that cannot be sold to the market, equating to lost revenues for the producer and royalty owners. Furthermore, when methane is used as instrument air, any well site using these devices will vent or flare the same amount of gas—regardless of the amount of gas that well produces.
A typical well will consume 35-60 MCF/day as instrument air. Field tests have shown that producers often greatly underestimate (by up to 10 X) the amount of gas used to drive pneumatic devices.
At a $2/MCF market value, 50 MCF/day equates to about $35,000/year of lost revenue per well.
A 10-well pad may have more than $350,000/year of lost revenue.