Gas flaring – where oil and gas companies burn off gas released during oil extraction – increased around the world last year to its highest level since 2019, despite a growing international push to regulate and curb the polluting practice.
According to satellite data released by the World Bank on Thursday, gas flaring increased by 7% in 2023, reversing a decline in 2022. The rise resulted in extra planet-warming emissions equivalent to 23 million tonnes of carbon dioxide (CO2) – similar to adding about 5 million cars to the roads, it said.
Gas flaring emits greenhouse gases including black carbon and methane, which has a warming effect about 80 times more potent than CO2 over a 20-year period.
The top flaring countries in 2023 were Russia, Iran, Iraq and the United States, with just nine countries responsible for 75% of gas flaring globally.
Last year also saw an uptick in the intensity of flaring, meaning the amount of gas flared per barrel of oil produced, as oil prices spiked above $90 a barrel in the autumn.
In some countries, such as Iran and Libya, increased flaring intensity was attributed to increased oil production, coupled with a lack of investment in and prioritisation of gas recovery and utilisation.
Intensity was also high in countries affected by conflict, such as Syria, where operators struggle to address flaring.
“We’re hopeful that this is somewhat of an anomaly and the longer-term trend will be dramatic reductions,” said Zubin Bamji, manager of the World Bank’s Global Flaring and Methane Reduction (GFMR) Partnership, which monitors flaring and supports governments and oilfield operators to reduce related emissions.
Decoupling trend
That hope is underpinned by the “decoupling of a long-standing correlation between oil production and gas flaring” since the late 1990s, Bamji explained in emailed comments.
Operators can minimise flaring through measures such as re-injecting gas back into the earth or capturing it for utilisation.
Demetrios Papathanasiou, director of the World Bank’s energy and extractives global practice, said in a statement on the data that if the wasted gas were captured and used, it could displace dirtier energy and generate enough power to double electricity supplies in sub-Saharan Africa.
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But others argue that using flared gas more efficiently – or regulating flaring and its related methane emissions – will not be eliminate the practice as long as fossil fuels are still being produced.
“The number one thing we need to do is put the oil and gas industry into decline,” said Lorne Stockman, research co-director at Oil Change International (OCI), a nonprofit group that campaigns against fossil fuels.
Pledges versus regulation
The increase in flaring suggests that growing global attention and initiatives to eliminate flaring have not been “sufficient or sustainable enough”, according to the World Bank’s report.
Operators and countries representing about 60% of flaring worldwide have endorsed the World Bank’s Zero Routine Flaring by 2030 (ZRF) initiative, while 155 countries have signed a Global Methane Pledge, launched at the COP26 climate summit in 2021, to collectively cut methane emissions.
Jonathan Banks, global director of methane pollution prevention at Clean Air Task Force, an environmental group focused on decarbonising energy, said those initiatives are “helpful”.
But, he added, governments and companies are still “not doing nearly enough” to stop flaring, whether in the form of policies to force businesses to take action or energy firms’ own plans and investments.
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That is changing, Banks said, referring to recently introduced regulations in the United States, Canada and the European Union which aim to reduce methane emissions. “But those new policies take time to be implemented and enforced,” he noted.
The EU’s Methane Strategy, adopted in May, will include a methane transparency requirement on gas imports that looks to penalise gas flaring and venting – an even more polluting practice of releasing unignited gas.
“The potential to use access to the European market as a way to drive action is huge,” Banks said, adding that only a global standard, applied to all internationally traded oil and gas, could bring an end to flaring and venting.
US gas “certification”
Without such a standard, oil and gas companies are in practice policing themselves when it comes to curbing flaring and methane emissions more broadly.
In the US, for example, third-party gas “certification” companies track methane emissions coming from oil and gas infrastructure and tell consumers their gas is “responsibly sourced”.
According to OCI, there is no set standard for what level of methane leak reductions qualify natural gas for this label.
“Methane became a reputational issue for the US oil and gas industry a few years ago,” said OCI’s Stockman. “Suddenly we saw this proliferation of companies offering to monitor methane, and provide a certification to gas producers as an incentive to sign up.”
Gas certification is currently part of oil and gas companies’ voluntary efforts to act on their methane pollution – in the US, Colorado is the only state that directly measures methane emissions from oil and gas infrastructure. But, according to OCI, the industry is pressing regulators to use certification “as a proxy for regulatory oversight.”
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Research by Earthworks and OCI found that these certifying companies use unreliable technology, which missed all but one of the emissions “events” captured by researchers’ own monitoring equipment.
They also found conflicts of interest on the part of leaders and board members of certification companies, including holding investments in the same oil and gas clients they were working with and promoting fossil gas as a clean energy source.
While regulation is needed, Stockman said, it must be monitored by governments and is near impossible to enforce at scale, due to practical and technological limitations.
Even satellite technology is limited in its capacity to observe small-scale emissions events at “hundreds of thousands of individual sites”, he said.
“We can’t trust the industry,” he added. “The way to keep methane out of the atmosphere is to keep it in the ground.”
(Reporting by Daisy Clague; editing by Megan Rowling)
The post Gas flaring back on the rise, fuelling calls for stronger regulation appeared first on Climate Home News.
Gas flaring back on the rise, fuelling calls for stronger regulation
With the U.S. bombing Iran and the Strait of Hormuz closed, energy experts say countries transitioning to renewables will be more resilient in the “face of the shock.”
The United States’ war on Iran could fundamentally alter how countries consume and generate energy and hamper international progress in combating climate change, a panel of energy experts said today.
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One month into the US and Israel’s war on Iran, at least 60 countries have taken emergency measures in response to the subsequent global energy crisis, according to analysis by Carbon Brief.
So far, these countries have announced nearly 200 policies to save fuel, support consumers and boost domestic energy supplies.
Carbon Brief has drawn on tracking by the International Energy Agency (IEA) and other sources to assess the global policy response, just as a temporary ceasefire is declared.
Since the start of the war in late February, both sides have bombed vital energy infrastructure across the region as Iran has blocked the Strait of Hormuz – a key waterway through which around a fifth of global oil and liquified natural gas (LNG) trade passes.
This has made it impossible to export the usual volumes of fossil fuels from the region and, as a result, sent prices soaring.
Around 30 nations, from Norway to Zambia, have cut fuel taxes to help people struggling with rising costs, making this by far the most common domestic policy response to the crisis.
Some countries have stressed the need to boost domestic renewable-energy construction, while others – including Japan, Italy and South Korea – have opted to lean more on coal, at least in the short term.
The most wide-ranging responses have been in Asia, where countries that rely heavily on fossil fuels from the Middle East have implemented driving bans, fuel rationing and school closures in order to reduce demand.
‘Largest disruption’
On 28 February, the US and Israel launched a surprise attack on Iran, triggering conflict across the Middle East and sending shockwaves around the world.
There have been numerous assaults on energy infrastructure, including an Iranian attack on the world’s largest LNG facility in Qatar and an Israeli bombing of Iran’s gas sites.
Iran’s blockade of the Strait of Hormuz, a chokepoint in the Persian Gulf, is causing what the IEA has called the “largest supply disruption in the history of the global oil market”.
A fifth of the world’s oil and LNG is normally shipped through this region, with 90% of those supplies going to destinations in Asia. Without these supplies, fuel prices have surged.
Governments around the world have taken emergency actions in response to this new energy crisis, shielding their citizens from price spikes, conserving energy where possible and considering longer-term energy policies.
Even with a two-week ceasefire announced, the energy crisis is expected to continue, given the extensive damage to infrastructure and continuing uncertainties.
Asian crunch
Carbon Brief has used tracking by the IEA, news reports, government announcements and internal monitoring by the thinktank E3G to assess the range of national responses to the energy crisis roughly one month into the Iran war.
In total, Carbon Brief has identified 185 relevant policies, announcements and campaigns from 60 national governments.
As the map below shows, these measures are concentrated in east and south Asia. These regions are facing the most extreme disruption, largely due to their reliance on oil and gas supplies from the Middle East.
Nations including Indonesia, Japan, South Korea and India are already spending billions of dollars on fuel subsidies to protect people from rising costs.
At least 16 Asian countries are also taking drastic measures to reduce fuel consumption. For example, the Philippines has declared a “state of national emergency”, which includes limiting air conditioning in public buildings and subsidising public transport.
Other examples from the region include the government in Bangladesh asking the public and businesses to avoid unnecessary lighting, Pakistan reducing the speed limit on highways and Laos encouraging people to work from home.
Europe – which was hit hard by the 2022 energy crisis due to its reliance on Russian gas – is less immediately exposed to the current crisis than Asia. However, many nations are still heavily reliant on gas, including supplies from Qatar.
The continent is already feeling the effects of higher global energy prices as countries compete for more limited resources.
At least 18 European nations have introduced measures to help people with rising costs. Spain, which is relatively insulated from the crisis due to the high share of renewables in its electricity supply, nevertheless announced a €5bn aid package, with at least six measures to support consumers.
Many African countries, while also less reliant on direct fossil-fuel supplies via the Strait of Hormuz than Asia, are still facing the strain of higher import bills. Some, including Ethiopia, Kenya and Zambia, are also facing severe fuel shortages.
There have been fewer new policies across the Americas, which have been comparatively insulated from the energy crisis so far. One outlier is Chile, which is among the region’s biggest fuel importers and is, therefore, more exposed to global price increases.
Tax cuts
The most common types of policy response to the energy crisis so far have been efforts to protect people and businesses from the surge in fuel prices.
At least 28 nations, including Italy, Brazil and Australia, have introduced a total of 31 measures to cut taxes – and, therefore, prices – on fuel.
Even across Africa, where state revenues are already stretched, some nations – including Namibia and South Africa – are cutting fuel levies in a bid to stabilise prices.
Another 17 countries, including Mexico and Poland, have directly capped the price of fuel. Others, such as France and the UK, have opted for more targeted fuel subsidies, designed to support specific vulnerable groups and industries.
These measures are all shown in the dark blue “consumer support” bars in the chart below.
Such measures can directly help consumers, but some leaders, NGOs and financial experts have noted that there is also the risk of them driving inflation and reinforcing reliance on the existing fossil fuel-based system.
Christine Lagarde, president of the European Central Bank, spoke in favour of short-term measures to “smooth the shock”, but noted that “broad-based and open-ended measures may add excessively to demand”.
Measures to conserve energy, of the type that many developing countries in Asia have implemented extensively, have been described by the IEA as “more effective and fiscally sustainable than broad-based subsidies”.
So far, there have been at least 23 such measures introduced to limit the use of transport, particularly private cars.
These include Lithuania cutting train fares, two Australian states making public transport free and Myanmar and South Korea asking people to only drive their cars on certain days.
Clean vs coal
At least eight countries have announced plans to either increase their use of coal or review existing plans to transition away from coal, according to Carbon Brief’s analysis. These include Japan, South Korea, Bangladesh, the Philippines, Thailand, Pakistan, Germany and Italy.
These measures broadly involve delaying coal-plant closure, as in Italy, or allowing older sites to operate at higher rates, as in Japan – rather than building more coal plants.
There has been extensive coverage of how the energy crisis is “driving Asia back to coal”. However, as Bloomberg columnist David Fickling has noted, this shift is relatively small and likely to be offset by a move to cheap solar power in the longer term.
Indeed, some countries have begun to consider changes to the way they use energy going forward, amid a crisis driven by the spiralling costs of fossil-fuel imports.
Leaders in India, Barbados and the UK have explicitly stressed the importance of a structural shift to using clean power. Governments in France and the Philippines are among those linking new renewable-energy announcements with the unfolding crisis.
New renewable-energy capacity will take time to come online, albeit substantially less time than developing new fossil-fuel generation. In the meantime, some nations are also taking short-term measures to make their road transport less reliant on fossil fuels.
For example, the Chilean government has enabled taxi drivers to access preferential credit for purchasing electric vehicles (EVs). Cambodia has cut import taxes on EVs and Laos has lowered excise taxes on them.
Finally, there have been some signs that countries are reconsidering their future exposure to imported fossil fuels, given the current economics of oil and gas.
The New Zealand government has indicated that a plan to build a new LNG terminal by 2027 now faces uncertainty. Reuters reported that Vietnamese conglomerate Vingroup has told the government it wanted to abandon a plan to build a new LNG-fired power plant in Vietnam, in favour of renewables.
The post Iran war analysis: How 60 nations have responded to the global energy crisis appeared first on Carbon Brief.
Iran war analysis: How 60 nations have responded to the global energy crisis
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