A mud pulse telemetry system comprises a surface located fluid supply line having a drilling fluid flowing therein. A non-venting pulser is disposed in the drilling fluid in the supply line, and the non-venting pulser is adapted to generate pressure fluctuations in the flowing drilling fluid. A downhole receiver in hydraulic communication with the non-venting pulser is adapted to detect the pressure fluctuations in the drilling fluid. A method for transmitting pressure signals from a surface location to a downhole location in a wellbore, comprises disposing a non-venting pulser in a surface located fluid supply line having a drilling fluid flowing therein. The non-venting pulser is actuated to generate pressure fluctuations in the flowing drilling fluid according to a predetermined encoding scheme. The pressure fluctuations are detected with a downhole receiver in hydraulic communication with the non-venting pulser.