A Missed Opportunity
The report finds that the 167 bcm flared globally in 2025 exceeds the volume of LNG that transited the Persian Gulf that year, a stark measure of the energy value being wasted. It also matches Africa's entire annual gas consumption, a continent where energy poverty remains a significant barrier to economic development.
In effect, oil producers are burning a valuable resource that could support energy access, reduce reliance on costly imports, generate much-needed revenue in developing countries, and cut greenhouse gas emissions. With acute energy challenges persisting across much of the world, the scale of this missed opportunity demands urgent attention from policymakers, operators, and investors.
Flaring, Economic Growth, and Job Creation
In Sub-Saharan Africa, power outages have been associated with a 14 percent reduction in employment, a reminder that energy is not just an input cost, but a key enabler of economic development. If captured and used to generate power, the 167 bcm of gas flared could provide approximately four billion kilowatt-hours of electricity, enough to make a material difference in underserved communities around the world.
For governments in oil-producing developing countries, flaring reduction represents a win-win: capturing associated gas generates government revenues, expands reliable energy access, enables industrial growth, and supports job creation. The gas is already there. The question is why it is wastefully burned rather than used productively.
The Economics of Action
The US$54 billion worth of gas flared in 2025 represents an annual loss that compounds with every year of inaction. The estimated cost of eliminating routine flaring globally is US$70–100 billion in upfront investment, roughly twice the annual value of the gas currently being wasted. The technologies required to capture, process, and utilize associated gas are mature and widely available. The barrier is not the availability of technology or the absence of viable economics. It is the lack of pipeline infrastructure, gas market development, access to capital, and enforced regulatory standards that make flaring reduction obligatory rather than aspirational.
