Reuters, by
Henning Gloystein and Alessandra Prentice, LONDON | Wed May 2, 2012
(Reuters) -
The shale energy boom is fuelling a rise in the burning of waste gas after
years of decline, a World Bank source told Reuters ahead of the release of new
data, giving environmentalists more ammunition against the industry.
Global gas
flaring crept up by 4.5 percent in 2011, the first rise since 2008 and
equivalent to the annual gas use of Denmark, preliminary data from the World
Bank shows.
The
increase is mostly due to the rise in shale oil exploration in North Dakota,
propelling the United States into the top 10 gas flaring countries along with
Russia, Nigeria and Iraq.
The
preliminary data - which will be released in detail later in May - shows that
global gas flaring crept up to around 140 billion cubic meters (bcm) in 2011,
up from 134 bcm the previous year.
Flaring is
used to eliminate gas at mineral exploration sites, and is released via
pressure relief valves to ease the strain on equipment.
"The
challenge in North Dakota is that there is a lot of initial exploration and
production going on, and often some flaring is necessary at that stage,"
the source at the World Bank's Global Gas Flaring Reduction Partnership (GGFR)
said.
"We
are hopeful that when the full data is released, both policymakers and
companies in North Dakota will pay more attention to this issue and take the
necessary steps to minimize flaring."
The data
will draw further criticism to the industry, which some activists already
condemn on environmental grounds.
"Environmental
regulations to stop flaring are taking a real kick in the teeth because the
financial crisis has put the emphasis on increasing competitiveness, while
anything that is seen as diminishing competitiveness is not getting any
political traction," Charlie Kronick, senior climate campaigner at
Greenpeace, said.
Britain's annual
gas consumption is just under 100 bcm, and Norway's yearly production just
above that - which makes the 140 bcm flared globally over a third more than
Europe's top consumer and producer, respectively.
In current
market terms, 140 bcm of gas would be worth over $100 billion in barrels of oil
equivalent.
ECONOMIC
WASTE
Gas flaring
has fallen more than 20 bcm since 2006 - despite a slight increase between
2008/2009 - but the rise in 2011 indicates that companies and countries must
continue to scale up their efforts to reduce global flaring, the GGFR said.
Despite
massive oil and gas reserves, many top flaring countries suffer from chronic
power shortages and stagnating gas export volumes which experts say could be
addressed if they used the gas instead of burning it.
"It is
key to show producers and governments that there is a win-win solution - in
many cases you're saving the gas and putting it to a positive use and sometimes
you're building energy infrastructure that can be a catalyst for future economic
benefit," Michael Farina of U.S. energy engineering group GE Energy said.
In Iraq,
the World Bank says that the gas flared is enough to fuel all of the country's
electric power needs, most of which is unmet or generated by heavy fuel and
crude oils, while Nigeria also faces substantial losses from flaring.
"Nigeria
loses billions of naira to wasted gas while the nation's power projects are
crippled as a result of lack of gas supply," Nigerian pressure group
Social Action said.
The wasted
gas also causes immense environmental damage, both locally and on a global
scale.
The World
Bank estimates that the flaring of gas adds some 360 million metric tons of
carbon dioxide (CO2) in annual emissions, almost the same as France puts into
the atmosphere each year or the equivalent to the yearly emissions from around
70 million cars.
If this
waste were to take place within the European Union's carbon emissions trading
scheme, the flaring would cost some 2.5 billion euros ($3.30 billion) at
current market value of 7 euros per metric ton of CO2.
Estimating
that flaring amounts to around 4.5 percent of global industrial emissions,
environmental group Greenpeace says current legislation fails to tackle the
issue.
"The
problem is that international oil companies are not penalized for flaring
gas," Greenpeace's Kronick said.
The damage
flaring does to local communities is also immense.
Social
groups in Nigeria say that flaring in the Niger Delta, where some 30 million
people live, has gone on for 40 years and led to acid rains, causing many
illnesses.
"Flaring
of gas endangers human health and reduces agricultural productivity,"
Nigeria's Social Action group said. ($1 = 0.7571 euros)
(Additional
reporting by Oleg Vukmanovic, editing by William Hardy)
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Jessica Ernst, whose village in Alberta, Canada, is surrounded by natural gas wells, told a Calgary publication in 2008 that due to methane contamination, she could set her tap water on fire. Below, an apparatus the Duke University researchers used to test methane levels. (Photograph by Wil Andruschak.) |