American Oil and Gas Reporter - May 2023 - 74

World Bank: U.S. Flaring Dropped 9%
WASHINGTON-Global gas flaring
volumes fell about 3% in 2022, says a
report released this spring by The World
Bank.
The update comes as part of the 2023
" Global Gas Flaring Tracker Report, "
which the bank describes as a global and
independent indicator of gas flaring. It
finds that upstream oil and gas facilities
across the globe flared 139 billion cubic
meters in 2022. " This wasted gas could
displace dirtier sources of energy and increase
energy access in some of the world's
poorest countries, " the analysis says. " Routine
gas flaring also represents a lost opportunity
to provide many countries worldwide
with much-needed energy security. "
Concerns about energy security were
that much more prominent in 2022, the
report observes, with many countries
shifting away from importing Russian
hydrocarbons. It also credits the United
States, along with Nigeria and Mexico,
as one of three countries to account for
the lion's share of 2022 flaring reductions.
Russian Influence?
Since Russia's invasion of Ukraine in
early 2022, European energy security has
loomed large in policymakers' agendas,
the World Bank observes, which raises a
pair of key questions:
· If Europe is reducing its gas imports
from Russia, is Russia resorting to flaring
this gas instead?
· Has there been a notable change in
gas flaring in other countries as they increase
gas exports to Europe?
" During June and July 2022, Gazprom
dramatically reduced gas flows to Europe
via the Nord Stream pipeline system,
ostensibly due to prolonged maintenance
issues with a critical compressor station, "
the analysis says. " During August 2022,
the system was operating at around 32
million cubic meters of gas per day, just
20% of its maximum capacity. In late
September, pipeline operations were halted
completely after a subsea explosion
and, at the time of writing, have yet to
be restarted. "
One a year earlier, The World Bank
points out, Russia was one of the world's
largest natural gas exporters, sending
out about 210 billion cubic meters through
pipelines-58 bcm of which passed
through Nord Stream-and some 40
bcm in the form of liquified natural gas.
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However, the report finds, a nosedive in
Russian exports has not prompted a
spike in flaring.
" Perhaps contrary to some expectations,
there has not been an observable increase, "
The World Bank reports. " Considering
annual total flaring volumes, Russia's
flare volumes were largely static between
2021 and 2022, while oil production increased
slightly by 2%. This led to a
marginal decrease in Russia's flaring intensity
from 6.9 m3/bbl in 2021 to 6.8
m3/bbl in 2022. "
Meanwhile, it says, although Russian
gas exports accounted for around 45%
of the EU gas supply, 2022 saw the EU
gas imports mix shift dramatically, with
several producing countries sending more
gas to the European Union by both
pipeline and LNG.
" Most notably, the European Union
has significantly increased its gas imports
in the form of LNG from the United
States, Angola, Norway, Qatar, and Egypt,
and via pipeline from Azerbaijan and
Norway, " the World Bank details. " In
addition to the significant reduction in
gas imports from Russia, there has also
been a decrease in overall gas imports
via pipeline from Algeria and via LNG
from both Nigeria and Algeria. "
The report considers those countries'
s Oil & Gas
efforts, and turns special attention on
Egypt, Algeria, Angola and the United
States.
American Strides
According to the World Bank, U.S.
flaring dropped 9% between 2021 and
2022, and flaring intensity fell 14%, which
the report says constitutes the country's
lowest value recorded for a decade.
" This suggests a continuation of the
significant progress made by the United
States (discussed in our 2022 Flaring
Tracker Report) to expand its integrated
gas value chain and to commercialize
more associated gas, " the analysis details.
During 2022, there was also an increase
in LNG export globally from the United
Coming In June
The Kentucky Oil & Gas Association
will hold its 2023 Annual
Convention on June 28-29 at the
Campbell House in Lexington,
Ky. Read about KOGA in next
month's issue of The American
Oil & Gas Reporter.
74 THE AMERICAN OIL & GAS REPORTER
T x Onsho dti
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