Global Gas Flaring Value Surpasses $16B
The value of natural gas flaring across the world has seen a substantial increase to hit a global peak of $16.4 billion this year, according to Scottish data analytics firm Brainnwave.
The firm said this is due to the rising price of natural gas and the increased volume of gas flared. Brainnwave’s analysis saw the value of natural gas flared by 80 different nations increased by 11 percent. Further, the volume of natural gas lost due to flaring increased by just over three percent, from 140.5 billion cubic meters in 2017 to 145 billion cubic meters in 2018.
“Gas flaring is a major environmental issue, but it is also a commercial one,” said Brainnwave CEO Steve Coates. “Oil producers often lack the infrastructure to export natural gas from their wells and face few alternatives but to flare it in order to reach oil.”
The most wasteful nations in 2018, Brainnwave contends, are Russia, Iraq, Iran and the U.S. – altogether flaring more than 70 billion cubic meters of natural gas. The firm said this is enough to heat 38 million homes for one year and is also more gas flared than the next 30 most wasteful nations combined.
Recent analysis from Rystad showed that natural gas flaring in the Permian dropped in the first quarter of 2019 – its first drop since 2017.
“Some of our customers are now using our data intelligence platform to find opportunities to provide commercial solutions, including those that convert otherwise-flared gas into power without it even leaving the site,” said Coates. “There are commercially viable solutions to gas flaring – but they rely on the technology being available and the financial incentives to make sense.”
Brainnwave said it pinpointed gas flaring events around the globe using nighttime satellite imagery from visible infrared radiometer data that was used to measure the volume of gas flared. The firm then used the mean Henry Hub spot price for natural gas in U.S. dollars to estimate its value.
To contact the author, email Valerie.Jones@Rigzone.com
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