Flaring emissions from global upstream oil and gas production increased by 7 per cent from 2022 to 2023, according to new research by Rystad Energy.
This unexpected rise reverses previous gains and highlights ongoing challenges in the industry’s efforts to reduce its carbon footprint.
Upstream activities emit approximately one gigatonne of carbon dioxide (CO2) annually, with flaring contributing around 30 per cent of those emissions in 2023, assuming 98 per cent flaring efficiency on average.
Flaring, the process of burning excess natural gas during oil extraction, has long been a concern for environmentalists and policymakers.
Magnus Kjemphol Lohne, Senior Vice President of Energy Systems Research at Rystad Energy, stated: “The unexpected reversal of most of these gains in 2023 represents a step in the wrong direction from a climate perspective.”
He emphasised the need for continued efforts from companies, countries, and industry organisations to tackle routine flaring, particularly in regions less focused on emission reduction initiatives.
Rystad Energy’s analysis, which uses satellite data and global inventory overviews, revealed that the Middle East, Africa, and Russia collectively accounted for about 70 per cent of total flaring volumes in 2023.
Key findings include:
- The Middle East saw a sharp 7 per cent increase in flaring levels, reaching approximately 45 billion cubic metres (Bcm).
- Russia continued to dominate at the country level, with around 28 Bcm flared in 2023, a 12 per cent increase from the previous year.
- Iran, the US, and Libya also showed significant increases, each exceeding 10 per cent.
Flaring intensity, measured in kilograms of CO2 per barrel of oil equivalent (kg CO2/boe), provides insights into how effectively regions manage their flaring practices:
- The global average is 5 kg CO2/boe.
- The US and China, despite being among the top 10 largest emitters in absolute terms, have flaring intensities below 3 kg CO2/boe.
- Venezuela has one of the highest flaring intensities, emitting almost 40 kg CO2/boe.
The global upstream oil and gas industry has flared about 140 Bcm of gas annually over the past decade, resulting in substantial resource waste and significant greenhouse gas emissions.
While many countries and producers have made strides in reducing routine flaring, the recent increase serves as a reminder that global alignment on climate objectives remains crucial.
This uptick underscores the challenges facing the industry, particularly in key producing countries such as Russia, Iran, and Iraq.
As flaring reduction is considered a low-hanging fruit for oil and gas companies aiming to reduce their carbon footprint, this recent trend highlights the need for renewed focus and commitment to emission reduction strategies across the sector.
