Efforts to curb gas flaring intensify amid environmental concerns  

In recent years, the oil and gas industry has faced increasing scrutiny for flaring associated gases during crude oil extraction. Although global flaring volumes have been steadily declining, the top five gas-flaring nations—Russia, Iran, Iraq, Algeria, and Venezuela—have seen little change in their flaring levels. According to GlobalData, a leading data and analytics company, the industry is working with technology and equipment providers to find alternative solutions for managing stranded gases.

GlobalData's thematic report, "Gas Flaring," highlights that efforts to monetise stranded gases are gaining momentum, particularly in the US, the UK, and Norway. Despite the overall decline in global flaring, the leading gas-flaring countries continue to emit large quantities of gas. These nations often struggle to reduce flaring due to their economic dependence on oil exports and limited access to mitigation technologies. The report also examines the roles of industry leaders such as BP, Chevron, ExxonMobil, Saudi Aramco, Shell, and TotalEnergies in efforts to reduce gas flaring.

Ravindra Puranik, an Oil and Gas Analyst at GlobalData, states: "Gas flaring has long been associated with crude oil production. As crude oil became central to the global economy, gas flaring became more common. Over time, awareness of the environmental damage and financial losses caused by gas flaring increased, leading to global efforts to monitor and mitigate this activity."

The World Bank spearheads the global initiative to reduce gas flaring through regular emission monitoring and supports industry participants in curbing this practice. Many oil companies and national governments are signatories to the World Bank's Zero Routine Flaring by 2030 initiative. These collaborations among investors, governments, and oil companies have contributed to a downward trend in global gas flaring volumes.

While gas flaring prevents the direct release of methane into the atmosphere (venting), it still produces significant amounts of carbon dioxide. Environmentally conscious investors are pressuring oil and gas companies to mitigate both flaring and venting activities. The World Bank is one such investor actively supporting emission reduction through its ongoing initiative.

Puranik concludes: "The 2015 Paris Agreement has strengthened efforts to reduce global flaring. New regulations in countries like the US and some Middle Eastern nations have helped decrease flaring volumes. Even as oil demand rebounded in 2022 and the global economy picked up, flaring volumes remained relatively low compared to pre-pandemic levels. This trend is expected to continue through sustained global cooperation."