Global scrutiny on gas flaring: efforts to mitigate environmental impact intensify

Jakarta – A recent report by GlobalData found that despite a general decline in global flaring volumes, the top five gas-flaring nations—Russia, Iran, Iraq, Algeria, and Venezuela—have shown little change in their flaring levels. The industry is now collaborating with technology and equipment providers to explore alternative solutions for managing stranded gases, the group said in a press release.

The thematic report, “Gas Flaring,” highlights the increasing efforts to monetise stranded gases, particularly in the US, the UK, and Norway. The oil and gas industry has faced mounting scrutiny over the flaring of associated gases produced during crude oil extraction, the report said.

Leading gas-flaring countries continue to emit large quantities due to their economic reliance on oil exports and limited access to mitigation technologies. Industry leaders such as BP, Chevron, ExxonMobil, Saudi Aramco, Shell, and TotalEnergies are actively involved in efforts to reduce gas flaring.

Ravindra Puranik, an Oil and Gas Analyst at GlobalData, commented: “Gas flaring activity has been long associated with crude oil production. As crude oil became the backbone of the world economy, gas flaring became more common. Eventually, people started recognising the environmental ill effects and associated monetary losses caused by gas flaring. This resulted in global efforts to monitor and mitigate the gas flaring activity.”

Several oil companies and national governments signed onto the Zero Routine Flaring by 2030 initiative, a global effort, led by the World Bank. The effort tries to reduce gas flaring through regular emission monitoring and support for industry participants. This collaboration among investors, governments, and oil companies has led to a downward trend in global gas flaring volumes.

While gas flaring prevents the direct release of methane into the atmosphere, it still generates significant volumes of carbon dioxide. Environmentally conscious investors are pressuring oil and gas companies to mitigate flaring and venting activities. The World Bank remains a key supporter of emission reduction through its ongoing initiatives.

Puranik concluded: “The Paris Agreement of 2015 has bolstered efforts to reduce global flaring. New regulations have been introduced in countries such as the US and some countries in the Middle East, which have helped reduce flaring volumes. Even when the oil demand bounced back in 2022 and the world economy began to gather pace, flaring volumes were relatively low compared to the pre-pandemic levels. This trend is expected to hold for the foreseeable future, through global cooperation.” (Hartatik)

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