According to recent research by Rystad Energy, flaring emissions from global upstream oil and gas production rose by 7% from 2022 to 2023. Upstream activities emit approximately 1 gigatonne of carbon dioxide (CO2) annually, with flaring accounting for around 30% of those emissions in 2023, assuming an average flaring efficiency of 98%. Reducing flaring is seen as an easy way for oil and gas companies to lower their carbon footprints. However, this increase highlights significant challenges for the industry, especially in major producing countries like Russia, Iran, and Iraq.
Flaring involves burning off excess natural gas during oil extraction and has long been a concern for environmentalists and policymakers. While non-routine flaring is often necessary for safety and operational reasons, limiting routine flaring can significantly reduce emissions.
The reversal of progress in reducing flaring emissions in 2023 represents a setback for climate efforts. This situation emphasizes the need for ongoing and enhanced actions from companies, governments, and industry organizations to establish targets and implement strategies to reduce routine flaring. This is particularly important in countries that have not prioritized emission reduction and decarbonization.
Rystad Energy’s analysis combines satellite data with global inventory assessments to evaluate flaring practices worldwide. The findings reveal that the Middle East, Africa, and Russia together accounted for about 70% of total flaring volumes in 2023. The Middle East experienced a notable increase in flaring, reaching approximately 45 billion cubic meters (Bcm) — a 7% rise from the previous year. Russia remains the largest contributor, flaring around 28 Bcm in 2023, a 12% increase from last year. Other countries with significant increases include Iran, the United States, and Libya, all of which saw rises exceeding 10%. In the U.S., the spike can be attributed to challenges with midstream gas takeaway capacity, especially in the Permian Basin.
Flaring intensity, which measures emissions in kilograms of CO2 per barrel of oil equivalent (kg CO2/boe), provides insight into how effectively different regions and countries are managing flaring practices. The U.S. and China, despite being among the top ten largest emitters, maintain flaring intensities below 3 kg CO2/boe, significantly lower than the global average of 5 kg CO2/boe. In contrast, Venezuela has one of the highest flaring intensities, emitting nearly 40 kg CO2/boe.
Over the last decade, the global upstream oil and gas industry has flared about 140 Bcm of gas each year, resulting in a considerable waste of valuable resources and significant greenhouse gas emissions. While many countries and producers have made progress in reducing routine flaring, recent data shows that some regions are falling behind. The recent rise in flaring volumes and emissions serves as a stark reminder that achieving global alignment on climate goals is essential.
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