PW
Español

 

PW
Guyana
Surinam


PW
Trinidad

& Tobago
Caribbean

 

Prices
Graphics

 




Very usefull links



PW
Bookstore





Blogspots

The Global Barrel

Tiempo Culural

Gustavo Coronel

Iran Watch.org

Le Blog des
Energies Nouvelles

News Links

AP

AFP

Aljazeera

Dow Jones

Reuters

Bloomberg

Views and News
from
Norway

 

PW
Bookstore

 

 

 

Oil-producing countries could lose up to $82bn a year due to global gas flaring, says GlobalData

 

 

 


By Petroleumworld

MEXICO CITY
Petroleumworld 09 28 2021

Gas flaring – the combustion of unwanted natural gas produced during oil recovery – is losing many oil-producing countries up to $82bn*, according to GlobalData. The leading data and analytics company notes that, even though technological solutions exist to avoid gas flaring, many countries persist with the activity - including developed countries such as the US and Russia. Besides lost revenue, this is also an environmental issue, as gas flaring is one of the major contributors to CO2 emissions.

According to GlobalData’s report, ‘Gas Flaring – Thematic Research’, countries could make up to $82bn*, if they utilized this gas instead of flaring it.

Anna Belova, Senior Oil and Gas Analyst at GlobalData, comments: “It would do many countries, especially in Europe and Asia where natural gas prices are setting all-time records, a lot of good if oil and gas operators found the strategy to sell this gas rather than lose it - not only for the money but for meeting their CO2 targets too.”

Some of the biggest gas flarers, accounting for over 87% of all flared gas in 2020, were Algeria, Angola, Indonesia, Iran, Iraq, Libya, Nigeria, Malaysia, Mexico, Russia, the US and Venezuela.

Belova continues: “The top 12 gas-flaring countries flared almost 13 billion cubic feet of gas per day (bcfd). To put that into context, that amount of gas could easily keep the whole of Japan well supplied for a year. All of that power has simply gone to waste.”

Many countries flare gas because of lack of access to these markets, combined with the small volumes of gas produced at individual oil sites. The situation is further complicated by low domestic gas prices in most of the top flaring countries. The value of flared gas, when priced at domestic prices in Russia or the US for example, is often less than a quarter of what the gas could command on Europe or Asia markets.

Belova adds: “Reducing global gas flaring will require a multi-prong approach due to unique regional drivers that prioritize flaring over monetization of gas. Small-scale modular technologies, aimed at converting gas into liquids or chemicals, represent a logical choice for remote and distributed flaring sites. Alternatively, multiple sites by different operators can be combined with large-scale midstream and downstream components - provided enough flaring density. This approach was pioneered by Saudi Aramco and has now been applied in Texas, with LNG-based monetization of gas, and Russia, with natural gas used as feedstock for petrochemicals.

“Given that technological solutions exist at multiple scales, regulatory and investor pressures are needed to drive investments, supported by voluntary environmental, social and governance (ESG) commitments by operators to end routine flaring of gas globally.”

* Priced at record spot prices in Europe in August 2021.

TOP

                                                                                                                                                                                                                                                                                                                                                                                             Contact: editor@petroleumworld.com,


Editor & Publisher:Elio Ohep /
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2021, Elio Ohep A. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2021, Petroleumworld   / Elio Ohep - All rights reserved

This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.