Longer term, Velocys smaller scale GTL will offer a unique technical solution to unlock oil production in deep water fields at a distance from shore.
Over two billion standard cubic feet of associated gas is flared offshore every day. Flaring regulations are tightening around the world, and increasingly oil fields will become “locked in”.
Velocys and its partners will develop a unique integrated solution for remote deep-water applications where no other economical means of disposing associated gas exists. This will overcome the constraints of existing regulations on flaring and provide a means to carry out extended well tests cost effectively.
This is a market of longer-term focus for the company.