Governments, oil companies, and development institutions around the world are encouraged to endorse the “Zero Routine Flaring by 2030” Initiative. Read the full text below:
During oil production, associated gas is produced from the reservoir together with the oil. Much of this gas is utilized or conserved because governments and oil companies have made substantial investments to capture it; nevertheless, some of it is flared because of technical, regulatory, or economic constraints. As a result, thousands of gas flares at oil production sites around the globe burn approximately 140 billion cubic meters of natural gas annually, causing more than 300 million tons of CO2 to be emitted to the atmosphere.
Flaring of gas contributes to climate change and impacts the environment through emission of CO2, black carbon and other pollutants. It also wastes a valuable energy resource that could be used to advance the sustainable development of producing countries. For example, if this amount of gas were used for power generation, it could provide about 750 billion kWh of electricity, or more than the African continent’s current annual electricity consumption. While associated gas cannot always be used to produce power, it can often be utilized in a number of other productive ways or conserved (re-injected into an underground formation).
This “Zero Routine Flaring by 2030” initiative (the Initiative), introduced by the World Bank, brings together governments, oil companies, and development institutions who recognize the flaring situation described above is unsustainable from a resource management and environmental perspective, and who agree to cooperate to eliminate routine flaring no later than 2030.
The Initiative pertains to routine flaring and not to flaring for safety reasons or non-routine flaring, which nevertheless should be minimized. Routine flaring of gas is flaring during normal oil production operations in the absence of sufficient facilities or amenable geology to re-inject the produced gas, utilize it on-site, or dispatch it to a market. Venting is not an acceptable substitute for flaring.
Governments that endorse the Initiative will provide a legal, regulatory, investment, and operating environment that is conducive to upstream investments and to the development of viable markets for utilization of the gas and the infrastructure necessary to deliver the gas to these markets. This will provide companies the confidence and incentive as a basis for investing in flare elimination solutions. Governments will require, and stipulate in their new prospect offers, that field development plans for new oil fields incorporate sustainable utilization or conservation of the field’s associated gas without routine flaring. Furthermore, governments will make every effort to ensure that routine flaring at existing oil fields ends as soon as possible, and no later than 2030.
Oil companies that endorse the Initiative will develop new oil fields they operate according to plans that incorporate sustainable utilization or conservation of the field’s associated gas without routine flaring. Oil companies with routine flaring at existing oil fields they operate will seek to implement economically viable solutions to eliminate this legacy flaring as soon as possible, and no later than 2030.
Development institutions that endorse the Initiative will facilitate cooperation and implementation, and consider the use of financial instruments and other measures, particularly in their client countries. They will endeavor to do so also in client countries that have not endorsed the Initiative.
Governments and oil companies that endorse the Initiative will publicly report their flaring and progress towards the Initiative on an annual basis. They also agree to the World Bank aggregating and reporting the same.
The parties that endorse the Initiative acknowledge that its success requires all involved – governments and oil companies, with the support of development institutions – to fully cooperate and take the action described herein to eliminate routine flaring no later than 2030.
List of endorsers (In alphabetical order)
Governments (32)
Oil companies (39)
Development institutions (15)
Organizations Supporting the “Zero Routine Flaring by 2030” Initiative
While the “Zero Routine Flaring by 2030” Initiative is for governments, oil companies, and development institutions to endorse, the World Bank encourages relevant industry organizations to participate as advocates and to help meet the Initiative’s objectives.
OPEC supports the “Zero Routine Flaring by 2030” initiative
In a letter to the World Bank, OPEC Secretary General Mohammad Sanusi Barkindo assures support for the “Zero Routine Flaring by 2030” initiative. Mr. Barkindo writes that “This initiative, along with other similar initiatives, through preventing and mitigating GHG emissions, could contribute profoundly to address climate change as one of the great challenges of our time. Several OPEC Member Countries and countries participating in the Declaration of Cooperation and their oil companies are already participating in this initiative and I am sure if the capacities of other member countries allow, they will also welcome this initiative and would strive to address this environmental challenge.”
OLADE committed to supporting and advocating “Zero Routine Flaring by 2030”
In a letter to the World Bank, Latin America’s intergovernmental energy organization, OLADE, and its Executive Secretary Eng. Alfonso Blanco Bonilla, write: “…, the Organization aims to support the World Bank’s objectives of the “Zero Routine Flaring by 2030” initiative, which is fully aligned with our objectives and activities. OLADE is also focused on supporting and joining the global effort to end the burning and routine venting by raising awareness, providing technical assistance to the Member Countries that so request it, and encouraging them to join the initiative.” OLADE works for the integration, sustainable development and energy security in the Latin America region, advising and promoting cooperation and coordination among its 27 Member Countries.
World Petroleum Council supports the ZRF Initiative and encourages its members to do the same
A letter of support from World Petroleum Council (WPC) President Dr. József Tóth says “One of the Council’s core objectives is to support our members by raising awareness of environmental, sustainability, and social issues gaining attention and traction around the world. We encourage all WPC members, particularly from government, national and international oil companies, to endorse this Initiative because it is well-crafted and a highly visible way to demonstrate our industry’s commitment to strong environmental stewardship and effective resource management.”
“Zero Routine Flaring by 2030” Initiative—Benefits and commitments:
For endorsing governments | For endorsing oil companies
Benefits and commitments for endorsing governments |Download PDF
Benefits:
Commitments:
Benefits and commitments for endorsing oil companies | Download PDF
Benefits:
Commitments:
About the Zero Routine Flaring by 2030 Initiative
Does the “Zero Routine Flaring by 2030” Initiative focus on certain types of flaring?
Yes. The Initiative pertains to routine flaring, defined as flaring that occurs during the normal production of oil, and in the absence of sufficient facilities to utilize the gas on-site, dispatch it to a market, or re-inject it. The typical example this Initiative addresses is long-term continuous flaring for gas disposal where a gas market or injection capacity does not exist. The Initiative does not include non-routine flaring events. These can include: exploration and appraisal; initial well flow-back; well servicing; process upset; safety or emergency situations; equipment or gas handling infrastructure malfunction; or de-pressuring equipment for maintenance. The Initiative also excludes purge and pilot flaring necessary for safe flare operation, combustion of hazardous or polluting emissions, such as volatile organic compounds and hydrogen sulphide. Some flare gas sources (e.g. glycol treatment facilities, produced water treatment facilities) are so small and at such low pressure that it is environmentally more beneficial to utilize resources to reduce other flaring sources and other types of emission.
Why wait until 2030 to stop routine flaring, why not stop flaring right now?
The Initiative asks oil companies and governments to end ongoing routine flaring as soon as possible, and no later than by 2030. The actions needed to stop routine flaring are far-reaching and take considerable time and resources to plan and execute properly.
Why haven't the largest major international oil companies endorsed the Initiative?
Almost all of the largest international oil companies have already endorsed the Initiative, and more of them are expected to join over time. In total, 39 oil companies have endorsed the initiative, with the total number of endorsers at 86: accounting for about 60% of global gas flaring. Occidental became the first U.S. oil and gas company to endorse the initiative to reduce greenhouse gas emissions and utilize a valuable energy resource.
Isn't the Global Gas Flaring Reduction Partnership (GGFR) doing the same as this new Initiative?
The Initiative sets clear targets for the future. GGFR's role is not to set such targets, but to facilitate flaring reduction activities to help meet the 2030 target. GGFR has an active work program in developing countries to reduce routine gas flaring, while deploying the associated gas for productive use, for example for energy access.
In some instances, this also means working with governments to develop the fundamentals, such as proper flare measurement practices, before the new policies and regulatory measures are developed.
Why isn't GGFR in the list of endorsers of the Initiative?
GGFR is a global partnership and it is up to the individual members to decide whether or not to endorse the Initiative. Almost all partners have already done so; those that have yet to endorse are still engaged in internal deliberations and assessment.
What are some common reasons why governments would NOT endorse the Initiative?
A majority of major oil producing countries are expected to endorse the Initiative, but it takes time and dialogue to explain the consequences and nature of the commitment, and many governments need to follow a rigorous due diligence process before committing to the Initiative. As of the end 2019, over half the global flaring volume is within government jurisdictions covered by the “Zero Routine Flaring by 2030” Initiative.
What are the common reasons why oil companies would NOT endorse the Initiative?
Most major oil companies are expected eventually to endorse the initiative, but they also follow a rigorous due diligence process before committing to the Initiative.
Besides the positive environmental and climate change impacts of abiding by the Initiative, what other positive impacts could endorsing the Initiative have for governments and oil companies?
Instead of being flared, associated gas can be used in many different ways for the benefit of the local population. It can provide energy access to those who need it most; fuel power generation; provide liquid petroleum gases (LPGs) for heating or cooking; be used as feedstock for petrochemicals; and generate revenue through export.
Is "Zero Routine Flaring by 2030" a realistic goal?
Yes, it is. There will still be some flaring for safety reasons and in non-routine situations.
What will oil companies and governments do differently after they have endorsed the Initiative?
Oil companies and governments will ensure that new oil fields are developed without routine flaring. In addition, they will proactively address the ongoing "legacy" flaring to reduce or eliminate it at earliest opportunity. The initiative also reinforces the idea that governments, oil companies, and institutions all need to work together to eliminate routine flaring on a global scale.
Are you forcing governments and oil companies into uneconomic investments under the Initiative?
The Initiative does not force governments or oil companies to invest in uneconomic projects. The Initiative aims to stimulate and create the right environment of cooperation between all stakeholders so that economic solutions are found through appropriate regulation, application of technologies, and financial arrangements.
What would it cost to eliminate routine flaring by 2030?
A desktop study by GGFR in 2018 estimated the cost to eliminate routine flaring of between US$60 and US$100 billion. This estimate is in line with studies from Iraq, Russia, and Nigeria, albeit few in number, which indicate an average cost of around 6-9 US$/ft3/day (85 - 125 US$/t CO2/day) for onshore projects. (Note: This is the cost to install sufficient capacity to utilize 1 ft3 of flared gas). It is important to note this estimate does not include revenues from utilization of the gas.
How will we know that endorsing entities abide by the Initiative and that we can trust the reported flaring volumes?
Endorsing governments and oil companies will annually report their flaring and progress towards the Initiative. The World Bank will report the same, including the aggregated volumes on this website. (2017 will be the first year reporting will be published.) This is not to say it is an easy task; in part because the volume of most flaring is still estimated rather than metered. In addition, satellite monitoring will continue to provide estimates of flaring volumes for every country.
Is the Initiative legally binding?
The Initiative is not legally binding, but it establishes a clear public commitment verified through flare monitoring and using a variety of means, including government and company reports and satellite observations. Endorsers have repeatedly communicated they take the commitment very seriously and is why it can take some time to reach a decision.
What will the consequences be for an endorser not abiding by the commitments under the Initiative?
The initiative is voluntary and does not include any enforcement measures or penalties. However, its visibility and high global profile encourage continuing commitment to the initiative.
What does the World Bank do to support the Initiative?
The World Bank (i) monitors the progress of the endorsers, (ii) continues to promote the Initiative and seek additional endorsements, and (iii) aids the implementation of the Initiative, including considering the use of financial instruments and other measures, particularly in developing countries. The World Bank is an active GGFR partner and continues its efforts to end routine flaring worldwide.
Do endorsing governments have gas flaring regulation in place that is consistent with the Initiative?
Many have regulations with the same objective, but not always in a manner that has proved effective. One of the objectives of this Initiative would be to support governments in development of effective regulations. But for new oil field developments it is simple: the government makes it clear in bidding rounds and concession documents that oil field development plans require utilization (or re-injection) of the associated gas.
Why doesn't the Initiative address flaring at other locations than oil production sites?
Flaring at oil production sites represents by far the largest share of global flaring. Efforts are therefore focused there, rather than being diluted on all flaring sources.
Why doesn't the Initiative also address non-routine and safety flaring?
Safety flaring is both small in volume and essential for the safe operation of oil and gas production facilities. Non-routine flaring is often unforeseen in nature. For example, it could be due to issues with the operation of the facility, and as such is hard to mitigate. Oil companies are, of course, strongly encouraged to take measures to minimize all types of flaring.
How much of global flaring do the current endorsers of the Initiative represent?
Based on satellite estimates and publicly reported flaring data, together the endorsers represent more than 60% of global flaring.
Governments and oil companies that endorse the “Zero Routine Flaring by 2030” Initiative commit to “publicly report their flaring and progress towards the Initiative on an annual basis. They also agree to the World Bank aggregating and reporting the same.” Endorsers are asked to provide flaring data for the first full calendar year after they have endorsed the Initiative.
Oil companies report operated flaring, which is flaring for which the company is operator, i.e. the entire flaring volume from an operated field, not the equity share of the flaring. Oil companies do not include equity share of flaring in fields where another company is the operator.
Many governments do not distinguish routine flaring from total flaring in their data. The World Bank will seek better statistics on routine flaring so that over time the reporting of total flaring can be supplemented by reporting of routine flaring. Among oil company endorsers, a large majority of reporting companies also reported routine flaring for 2018. The Initiative contains the following definition: “Routine flaring of gas is flaring during normal oil production operations in the absence of sufficient facilities or amenable geology to re-inject the produced gas, utilize it on-site, or dispatch it to a market.” All other flaring is considered non-routine or safety flaring.
The World Bank also asks endorsing governments the following questions when requesting flaring data: “Has your government approved any new oil field development plans during calendar year 2018? If answering "yes" to the question above, have all field development plans for new oil fields approved by your government in 2018 incorporated utilization or conservation of the field’s associated gas without routine flaring?”
The World Bank asks endorsing oil companies the following questions: “Has your company in calendar year 2018 made final investment decisions (FID) to develop new oil fields? If answering "yes" to the question above, do all of these new oil fields have development plans that incorporate sustainable utilization or conservation of the field's associated gas without routine flaring?”
So far, all responses to these questions have been satisfactory, i.e. not exposing any breach of flaring commitments under the Initiative, although some responses are still pending.
ZRF Endorsers: Annual Upstream Flare Volumes - Governments
Annual Upstream Flare Volumes from governments (million Sm3) |
Endorsement date |
2016 |
2017 |
2018 |
|
|
Total |
Total |
Total |
Angola |
2016 |
6,230 |
3,800* |
2,787* |
Azerbaijan |
2016 |
|
151* |
196* |
Bahrain |
2016 |
|
132* |
80* |
California |
2016 |
92 |
|
|
Cameroon |
2016 |
1,670 |
1,466 |
1,509 |
Canada |
2016 |
|
1,343* |
1,325* |
Congo, Republic of |
2016 |
840* |
683* |
1,582* |
Denmark |
2017 |
|
|
105* |
Ecuador |
2018 |
|
|
|
Egypt |
2018 |
|
|
|
France |
2016 |
40 |
40 |
40 |
Gabon |
2016 |
1,429 |
1,503* |
1,375* |
Germany |
2016 |
9 |
7 |
7 |
Indonesia |
2017 |
|
|
2,061* |
Iraq |
2016 |
|
17,843* |
17,821* |
Kazakhstan |
2016 |
1,025 |
1,044 |
2,049* |
Mexico |
2016 |
5,204 |
6,140 |
|
Morocco |
2016 |
|
0* |
0* |
Netherlands |
2016 |
46 |
8* |
6* |
New Zealand |
2019 |
|
|
|
Niger |
2017 |
|
|
5 |
Nigeria |
2016 |
|
7,646* |
7,435* |
Norway |
2016 |
359 |
250 |
273 |
Oman |
2016 |
|
1,614 |
|
Peru |
2016 |
|
94* |
96* |
Russian Federation |
2016 |
12,340 |
8,867 |
21,280* |
Saudi Arabia |
2018 |
|
|
|
South Sudan |
2017 |
|
|
|
Turkmenistan |
2017 |
|
|
1,505* |
USA |
2017 |
|
|
14,069* |
Uzbekistan |
2016 |
432 |
885 |
788* |
Western Australia |
2017 |
|
|
31 |
*Flaring data is not self-reported; estimates using GGFR / NOAA / Colorado School of Mines satellite data have been used
ZRF Endorsers: Annual Upstream Flare Volumes - Companies
Annual Upstream Flare Volumes from oil companies (million Sm3) |
Endorsement date |
2016 |
2016 |
2017 |
2017 |
2018 |
2018 |
|
|
Total |
Routine |
Total |
Routine |
Total |
Routine |
BP |
2015 |
2,290 |
70 |
2,247 |
66 |
1,639 |
50 |
Ecopetrol |
2017 |
|
|
|
|
|
|
Eni |
2020 |
1,950 |
1,530 |
2,291 |
1,556 |
2,614 |
2,068 |
Equinor |
2015 |
344 |
|
315 |
48 |
338 |
88 |
ETAP |
2015 |
|
|
|
|
|
|
Frontier Oil Limited |
2016 |
|
|
3 |
0 |
2 |
0 |
GALP Energia |
2018 |
783 |
|
1 |
1 |
1 |
1 |
Gazprom Neft |
2015 |
|
|
|
|
|
|
KazMunayGaz |
2018 |
323 |
|
316 |
199 |
149 |
113 |
KazPetrol |
2016 |
|
|
|
|
|
|
Kuwait Oil Company |
2019 |
191 |
|
628 |
390 |
657 |
131 |
LUKOIL |
2016 |
|
|
|
|
313 |
46 |
MOL Group |
2018 |
29 |
|
37 |
24 |
61 |
36 |
Niger Delta Petroleum Resources |
2015 |
2 |
|
3 |
1 |
5 |
1 |
NNPC (Nigeria) |
2018 |
|
|
1,228 |
|
|
|
Oando Energy Resources |
2016 |
|
|
0 |
0 |
0 |
0 |
Oil India Limited |
2016 |
|
|
|
|
|
|
OMV |
2016 |
|
|
175 |
141 |
255 |
227 |
ONGC |
2017 |
586 |
|
|
|
|
|
Pan Ocean Corporation |
2016 |
|
|
1 |
0 |
1 |
0 |
PDO |
2016 |
|
|
|
|
1,028 |
497 |
Petroamazonas EP |
2017 |
844 |
|
568 |
568 |
593 |
593 |
Petrobras |
2016 |
|
|
|
|
|
|
Repsol |
2018 |
|
|
175 |
|
206 |
121 |
Saudi Aramco |
2016 |
|
|
|
|
|
|
Seplat |
2019 |
|
|
226 |
226 |
188 |
188 |
Seven Energy |
2016 |
16 |
|
21 |
18 |
18 |
16 |
Shell |
2016 |
2,153 |
|
2,482 |
1,093 |
1,501 |
618 |
SNH-Cameroon |
2015 |
3 |
|
2 |
2 |
|
|
SNPC-Rep. of Congo |
2016 |
|
|
683 |
|
|
|
SOCAR |
2016 |
33 |
|
1 |
|
1 |
1 |
Sonangol |
2016 |
237 |
|
|
|
|
|
Sonatrach (Algeria) |
2016 |
|
|
|
|
|
|
TOTAL |
2018 |
2,248 |
|
1,698 |
364 |
2,180 |
393 |
Uzbekneftegas |
2015 |
432 |
|
792 |
|
|
|
Wintershall DEA |
2016 |
77 |
|
220 |
207 |
303 |
280 |
Woodside |
2016 |
|
|
|
|
30 |
0 |
By declaring support and officially endorsing the Initiative, governments, companies, and development institutions are sending a message that eliminating routine flaring of gas is a significant and necessary step toward mitigating climate change and ensuring valuable natural resources are not wasted.
Governments, companies and development institutions must support each other in this effort through a spirit of collaboration and partnership.
Endorsers will join a growing global coalition demonstrating strong environmental leadership and effective natural resource management.
Governments, oil companies and development institutions interested in endorsing the Initiative or learning more about it, please email us with your name and contact information. (Sending an email does not constitute an endorsement of the Initiative.) Other organizations or individuals interested in this Initative please email us as well.
Learn more about the World Bank-led Global Gas Flaring Reduction Partnership.
