Flare Gas Reduction
Flaring gas, even though once considered one of the most appropriate ways to ensure safety at gas sites, is now taken under a closer look and the method is highly questioned. The waste that more than 100 billion cm of flared gas produce is an issue that many environmentalists try to tackle as well as certain gas market advocates.
It is not only the environment that is affected by the carbon dioxide emission with more than 400 millions of tons emitted into the atmosphere but also the fact that the wasted gas could be turned into a nice lucrative market further enhancing the economy at a global stage.
Pros and Cons
The current CO2 emissions affect the population significantly since it causes health problems and results in livelihood losses very often. Even if the required technology has been developed at this stage and awareness was increased among policy makers, the infrastructure is lagging behind that should integrate gas markets better based on more appropriate designs. Even if recent efforts have had some impact on the oil and gas industry, it is a long way to defining the market in a new light, and it will take 10 more years at least to start the reduction efficiently. The positive thing is that flared gas reduction advocates succeeded in proving their point of view and development of relevant policies and agendas certainly contributed to turning the idea into action.
Different Governmental Approaches
The further initiative will focus on governments that have no effective environmental regulations or a strategy to reduce flared gas, including countries that lack proper tools to enforce the laws and proper supervision of the gas sites. Notable progress was achieved by some oil producers who minimzed flaring gas activities and accepted the idea to some extent.
Developed countries and their gas producers are still experimenting with new ideas of how to avoid major gas flaring and how to put the energy that has been wasted for a very long time to use. New companies and gas sites mostly incorporate the new practices and include them in their work programs, but there are still those old sites and small-size companies that continue burning the gas and polluting the air and environment.
Starting At a Local Level
It is important that local communities realize the benefits of gas flaring reduction which could represent a platform for spreading throughout the region and gradually include wider areas until the issue is completely driven out. Gas in the local economy determines electricity and vehicle fuel prices. With efficient energy usage plans, costs would tumble down, but it would make room for generating profits as well. Financial benefits of gas flaring reductions are probably the main driver for businesses to actually think about the process.
The local level governance is not to be neglected since they can be the ones to pressure central governmental bodies to support the cause as a whole. The local government can assist with policy making and law enforcement subsequently.
Local oil and gas businesses could set up a cooperation mechanism and pool their resources in order not to carry the financial burden on their shoulders alone concerning restructuring for the benefit of flared gas reduction. It is easier to see the benefits of reduced pollution at the local level anyway, which means that local governments could be the target group to react first and initiate a series of flared gas reduction projects, even offering financial support to local gas businesses.
Afterward, the initiative can spread further to a higher level of governance. This step is crucial since it represents a more integrated approach to solving flared gas issues.
The local government initiatives could, however, be brought to a halt due to financial obstacles. When it comes to the gas market, governments are reluctant to allocate budgetary funds for their causes and use it rather for other priority areas. Carbon financing might be considered in this case.
To transform the oil and gas industry and make it more efficient can be a tough task, but some of the measures that can be implemented include adjusting prices for electricity and gas, efficient monitoring, tax benefits and royalty benefits for those who implement a qualified project, and introduction of low-carbon emission standards, as well as improvement of security and safety measures.