Saturday, April 18, 2015

Oil Firms, Nations Agree to End Gas Flaring

Group agrees to end practice of routine flaring of natural gas by 2030

By Amy Harder, WSJ
April 17, 2015 11:13 a.m. ET

WASHINGTON—Twenty-five major oil companies, oil-producing nations and development institutions agreed Friday to end the practice of routine flaring of natural gas by 2030 at thousands of oil production sites around the world.

Royal Dutch Shell, Statoil, Kuwait Oil Co., Russia, Norway and the Asian Development Bank are among those making the commitment, which was announced by the World Bank and United Nations at an event in Washington Friday. No U.S.-based companies have signed onto the initiative.

Many producers regularly burn off natural gas as carbon dioxide into the atmosphere when producing oil for a variety of reasons, including lack of infrastructure to move the gas and low economic incentive to use the gas.

Andrei Lushin, World Bank Group Executive Director for Russia, said in remarks at the event that the country flares the most gas associated with oil production in the world. “That is a problem of course, but this is also a potential to achieve large gains in reducing gas flaring,” Mr. Lushin said. “The government sees petroleum gas flaring as a waste of valuable resource and a very harmful practice for global climate.” Russia is one of the world’s largest producers of both oil and natural gas.

(More here.)

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