Natural Gas Flaring and Venting Declines as Focus is on Methane

New data from the U.S. Energy Information Administration (EIA) shows that venting and flaring of natural gas during oil and gas production are decreasing significantly, in fact, at a time when natural gas production is at an all-time high. This change represents a significant step forward in the oil and gas industry's environmental protection efforts, especially given increasing regulation and technological advancements.

Venting is the intentional release of natural gas, which is mostly methane, into the atmosphere during oil and gas production. Methane release is particularly concerning, as it is nearly 30 times more effective than carbon dioxide (CO2) at trapping heat, making it an unusually powerful greenhouse gas contributing to global warming. Flaring is the process of burning surplus natural gas in times when storing or transporting it are not economically feasible. This process emits CO2 into the atmosphere, which has a lifespan much longer than that of methane.

Recognizing the environmental hazards posed by venting and flaring, the Environmental Protection Agency (EPA) recently finalized stricter regulations aimed at curbing these practices. The new rules require oil and gas producers to upgrade equipment prone to leaks, such as pumps and storage tanks, to reduce venting and effectively bans flaring outright, except in emergency situations. Companies have a two-year period to phase out flaring and one year to update equipment to minimize venting.

Gas well operators have also been placing more focus on reducing methane emissions in recent years, installing real-time monitoring and replacing equipment. There have already been tangible effects. The amount of natural gas vented or flared in the U.S. (as a proportion of the total extracted) decreased from an annual average of 1.3% to just 0.5%, from 2018-2023, according to the EIA estimates, the lowest in 18 years. This decrease is not due to decreased production. U.S. natural gas output has hit record levels, currently averaging 125 billion cubic feet per day.

It is important to note that the rate of venting and flaring differs greatly from one state to another. There are also significant differences in oil-dominant and gas-dominant wells, with the former having much higher rates of venting and flaring, and associated GHGs because of the practice. In gas-heavy basins, such as the Appalachian region, little to no venting and flaring occurs.

North Dakota provides an important case study on the topic. Once known for its high rates of venting and flaring, the state implemented a ban on these practices in 2014. As a result, North Dakota has dramatically reduced its localized GHG emissions and captured more natural gas for commercial use, setting an example for other states to follow.

The significant reduction in venting and flaring, driven by new EPA regulations and industry adaptation, highlights a positive trend toward more sustainable practices in the oil and gas sector. These differences will become more crucial in fighting climate change, especially as oil and gas continues to be part of the energy mix.