The Oil & Gas Industry and the Environment

Gas Flaring

Flaring of produced gas - the process of burning-off surplus combustible vapours from a well, either as a means of disposal or as a safety measure to relieve well pressure - is the most significant source of air emissions from offshore oil and gas installations.

In 2001, Rashad Kaldany (Director Oil, Gas and Chemicals World Bank Group) highlighted four main causes of gas flaring :

   
1. Culture: gas was once viewed as a waste product, global warming was not an issue.
2. Contracts: flaring permitted and their was no obligation to find a market for the gas.
3. Markets: markets poorly developed and responsibilities for marketing ill-defined.
4. Governance: no incentive to maximise economic use of gas.
   

The current situation:

Gas flaring is increasingly recognised as a large environmental problem, contributing more than 1% to global emissions of CO2.
Gas seen as a valuable resource.

The Global Gas Flaring Reduction Initiative convened its first international conference in Oslo, Norway from April 15-16, 2002. The Initiative is led by the World Bank Group in collaboration with the Government of Norway. It was launched in Marakech, Morocco in November, 2001 with the aim of supporting national governments and the petroleum industry in their efforts to reduce the flaring and venting of gas associated with the extraction of crude oil.
Read More



The main focus of the Initiative is to identify and find ways to overcome barriers that currently inhibit flaring reduction investments. As the causes and barriers are known, the challenge is to find practicable solutions that will generate investments. The Initiative will aim to:
1. Improve the political and regulatory
   framework for investments in flaring
   reductions.
2. Improve market access for gas.
3. Disseminate information on international
   "best practices." Read More
 
 
Module: Climate Change
Report on Consultations with Stakeholders
   Proceedings from Oslo Conference, April
   15/16 2002