View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Comment
August 9, 2021updated 21 Jul 2022 12:10pm

Oil and gas industry is preparing ground to resolve gas flaring issue

Gas flaring relates to excess natural gas that is let out during oil and gas operations, although many companies are trying to reduce emissions.

By GlobalData Energy

GlobalData’s latest thematic report, ‘Gas Flaring,’ provides an overview of gas flaring activities around the world. It highlights the top gas flaring countries in this domain along with the role played by leading oil and gas companies to lessen the greenhouse gas (GHG) emissions from flaring.

Gas flaring involves excess natural gas being burnt or flared off during an oil and gas operation. Gas flaring takes place across the oil and gas value chain but is predominant in the upstream sector. It has often been an easier recourse than harnessing the excess gas. Hence, it is natural that the largest exploration and production companies will contribute most towards gas flaring. Lately, there has been a conscious effort from the industry leaders to minimise this activity by setting up a gas recovery system or even channelizing the gas to produce alternate revenue streams.

The global geopolitical landscape addresses the gas flaring issue by encouraging countries to set themselves targets to reduce and subsequently eliminate gas flaring from their industries. Industry consortiums such as IPIECA and OGCI are working to do away with gas flaring. The inclusion of prominent oil-producing groups in this endeavour, the OPEC+ in particular, would boost efforts to curb global gas flaring activity.

Most of the top ten gas flaring countries are strongly dependent on their oil and gas production. This has often led to lax regulatory control on gas flaring activity. The excess gas that cannot be diverted into profitable channels is often flared off. This results in the wastage of a scarce energy resource that contributes to 1% of manmade carbon dioxide emissions and also leads to air pollution.

According to the UN and GlobalData estimates, countries that led the gas flaring ranking in 2020 were Iran, Venezuela, Russia, the US, Iraq, Nigeria, Indonesia, Malaysia, Mexico and Angola. Iran led the global gas flaring output by volume in 2020, with 1,054Bcf of gas flared.

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Offshore Technology