Why are we still flaring gas?

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Aug 29, 2024

Tomás de Oliveira Bredariol, an energy and environmental policy analyst at the IEA, delves into the perplexing issue of gas flaring in oil production. Despite major initiatives, flare volumes have stagnated, leading to massive greenhouse gas emissions. Tomás discusses the nine countries responsible for the majority of flaring and the surprising reasons oil companies choose diesel over available gas. He explores innovative alternatives for using flared gas, potential regulations, and financial incentives as pathways to reduce waste and unleash methane's value.

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INSIGHT

Flaring Inefficiency

Natural gas, a major traded commodity, is wasted through flaring.
This contradicts efficient market behavior where valuable resources are typically not wasted.

INSIGHT

Flaring Rationale

Flaring, burning natural gas, is done to convert methane into less potent CO2.
This reduces the climate impact, though CO2 is still released.

INSIGHT

Reasons for Flaring

Oil producers flare gas due to lacking infrastructure for exporting associated gas.
Other reasons include focusing on more profitable oil production and short-term economic considerations.

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Oil producers waste a lot of natural gas. Last year they flared 150 billion cubic meters of associated gas into the atmosphere, equivalent to about half the global carbon emissions of aviation over a 30-year period.

So why are oil producers burning a valuable commodity like gas?

In this episode, Shayle talks to Tomás de Oliveira Bredariol, an energy and environmental policy analyst focused on methane at the IEA. So far, multiple major global initiatives haven’t made a dent in flare volumes, which have remained largely flat since 2010. Shayle and Tomás talk about the reasons why and the potential solutions, covering topics like:

The nine countries responsible for about three quarters of flare volumes
Why we don’t just build more pipelines
Why oil wells may choose expensive diesel instead of powering their equipment with associated gas
Converting gas into more valuable forms, like compressed natural gas, liquid natural gas, or methanol
The potential for regulation and financial incentives to push producers to cut flare volumes

Recommended resources

International Energy Agency: Curtailing Methane Emissions from Fossil Fuel Operations

National Renewable Energy Laboratory: Stranded Natural Gas Roadmap

World Bank: Global Gas Flaring Data

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