Global Gas Flaring Hits Six-Year High
EnergyComments
higher flaring usually signals an increase in total output, which keeps global spot prices lower for everyone else.
Who determined the $54 billion valuation? Market prices fluctuate, so a fixed dollar amount for wasted gas is typically a rough estimate.
The valuation typically uses a weighted average of regional benchmarks, which accounts for the volatility Mike mentioned. While not a precise ledger, it provides a consistent metric for comparing annual waste across different geopolitical zones.
Does the recent deal to lift sanctions on Iranian oil exports change the math here... if they can actually move more product, does the incentive to flare decrease or do they just ramp up production regardless?
The data shows that midstream capacity in these regions has not kept pace with extraction rates. The waste is less about policy choice and more about a total lack of pipeline infrastructure to move the gas.
Is it really a capacity issue? Or is it just cheaper for these regimes to burn the gas than to invest in the pipes?
These targets ignore the difference between routine flaring and safety flaring during equipment failure. You cannot just turn off the flare when a compressor fails without risking a site explosion.
Some regions have managed this by diverting flared gas to small-scale local power grids. This solves the waste problem while providing electricity to rural areas that were previously off-grid.