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Thursday, September 05, 2024

Further Sanctions to Degrade Russia’s Ability to Operationalize the Arctic LNG 2 Project


Press Statement

Matthew Miller, 
DOD
Department Spokesperson

September 5, 2024


In response to Russia’s continued war of aggression against Ukraine, the United States is imposing further costs on those supporting Russia’s war effort and attempting to expand Russia’s global energy leverage.

In today’s actions, the Department of State is targeting two entities and two vessels connected to attempts to export liquefied natural gas (LNG) from the U.S.-sanctioned Arctic LNG 2 project. The Department is sanctioning Gotik Energy Shipping Co (Gotik) and Plio Energy Cargo Shipping OPC PVT LTD (Plio Energy). Gotik and Plio Energy are the registered owner and commercial manager, respectively, of the LNG carrier (LNG/C) New Energy. LNG/C New Energy used deceptive shipping practices, including shutting off its automatic identification system, to load cargo from the U.S.-sanctioned Arctic LNG 2 project via a ship-to-ship transfer on August 25, 2024, with LNG/C Pioneer, a vessel blocked by the United States on August 23, 2024. We are also identifying one additional vessel managed and operated by Plio Energy, LNG/C Mulan, as property in which Plio Energy has an interest.

The U.S. government will continue to answer attempts to operationalize the sanctioned Arctic LNG 2 project or otherwise expand Russia’s energy capabilities with a swift response. Working alongside our G7 partners and other allies, we will remain steadfast in countering Russia’s exploitation of its energy resources for political gain.

Gotik and Plio Energy are being designated pursuant to Section 1(a)(vi)(B) of E.O. 14024, as amended, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, Limited Liability Company Arctic LNG 2, a person whose property and interests in property are blocked pursuant to E.O. 14024. New Energy (IMO 9324277) is being identified as property in which Gotik has an interest, and Mulan (IMO 9864837) is being identified as property in which Plio Energy has an interest.


Tuesday, September 03, 2024

PUTTING LIE TO TRUMP LIES

'You Cannot In Fact Do Both': Biden Slammed for Bragging About Oil Production

"No you cannot 'do both.' That would be like sending 50,000 tons of lethal weapons to a brutal, murderous regime and then telling them you 'want a cease-fire,'" said Climate Defiance.



Campaigners with the Sunrise Movement assembled at the headquarters of President Joe Biden's 2024 campaign in Wilmington, Delaware on February 12, 2024.
(Photo: Sunrise Movement)

Brett Wilkins
Sep 03, 2024
COMMON DREAMS

Climate campaigners this week rebuked recent claims by U.S. President Joe Biden—and Vice President Kamala Harris, the 2024 Democratic presidential nominee—that the United States can simultaneously increase fossil fuel production and transition to a clean energy future.

On Saturday, Biden boasted on social media that "on my watch, we've responsibly increased our oil production to meet our immediate needs—without delaying or deferring our transition to clean energy."

"We're America," the president added. "We can do both."


In a simultaneous swipe at the Biden administration's climate record and support for Israel's annihilation of Gaza, the direct action group Climate Defiance retorted: "No you cannot 'do both.' That would be like sending 50,000 tons of lethal weapons to a brutal, murderous regime and then telling them you 'want a cease-fire.'"





Other climate groups and experts have also challenged Biden's position in recent days.


Climate scientist Peter Kalmus said on social media, "This is horrifying."


Fridays for Future USA contended, "You cannot in fact do both."


"You can't expand fossil fuels on Monday, expand renewables on Tuesday, and call it climate action on Wednesday," the youth-led movement added. "Do better."

Noting that Harris has also claimed that "we can do both," author and professor Genevieve Guenther asserted: "'We can do both' is apparently the climate and energy messaging on which the Harris campaign has settled. (Harris used the identical phrase in her CNN interview.) I understand it as a message that meets the moment. But it's not true, and I hope they don't believe it."


Despite lofty rhetoric and campaign pledges to center climate action—including by stopping new fossil fuel drilling on public lands—Biden oversaw the approval of more new permits for drilling on public land during his first two years in office than former President Donald Trump, the 2024 Republican nominee, did in 2017 and 2018.


The Biden administration has also held fossil fuel lease sales in the Gulf of Mexico and has approved the highly controversial Willow project, Mountain Valley Pipeline, and increased liquefied natural gas production and export before pausing LNG exports earlier this year.


Despite the pause—which campaigners are urging the Biden administration to make permanent—the president has also overseen what climate defenders have called a "staggering" LNG expansion, including Venture Global's Calcasieu Pass 2 export terminal in Cameron Parish, Louisiana and more than a dozen other projects that, if all completed, would make U.S. exported LNG emissions higher than the European Union's combined greenhouse gas footprint.


Biden also drew ridicule last year after he said he has "practically" declared a climate emergency—a longtime demand of activists. The president's claim came during a speech touting the clean energy provisions of the Inflation Reduction Act, which allocates hundreds of billions of dollars for climate-mitigating investments but also includes policies that anger green groups.


Climate campaigners widely agree that a Harris administration would be far preferable to one led by the climate science-denying Trump, one of whose mottos is "Drill, Baby, Drill." During his first term, Trump rolled back numerous climate-focused regulations and aggressively expanded U.S. fossil fuel production. Biden has reversed some of Trump's most impactful attacks on climate and environmental protections.


In April, Trump reportedly told fossil fuel executives that a $1 billion investment in his campaign would be a great deal for them due to all the taxes and regulations they would avoid under his administration.


Meanwhile, Harris is widely expected to continue many of Biden's climate and energy policies, including embracing fracked methane gas, which she once said she wanted to ban.

In another "we can do both" moment, Harris toldCNN last week that "what I have seen is that we can grow and we can increase a thriving clean energy economy without banning fracking."
Gaza, the Climate Emergency and Defeating Trump
September 2, 2024
Source: Originally published by Z. Feel free to share widely.


For the last 21 years, the primary issue I have focused on is the climate crisis. It’s a no-brainer for me: it is a scientific fact that time is running out to prevent ecosystem and societal unraveling unless the world rapidly stops burning coal, oil and gas and shifts onto wind and solar, in particular, as well as geothermal and flowing water as the dominant and ubiquitous sources of energy for transportation, power, heating and cooling. The tipping points, the points after which it will be extremely difficult to prevent that unraveling, are possibly just years, not decades, away.

But there are two other issues that I consider of great urgency right now: Gaza and Israel’s continuing anti-Palestinian crusade to take over all of Palestine, “from the river to the sea,” and the urgent necessity for the strongest possible defeat of Trump and MAGA on November 5.

What specifically am I doing and planning to do for the next two months in those three areas?

GAZA/PALESTINE: 

I will continue taking part in weekly, pro-ceasefire demonstrations every Friday in downtown Montclair, NJ organized by NJ Peace Action and be open to participating in others and responding to organized call-ins to elected officials. I will follow the news closely on a daily basis as to what is happening in Gaza and the West Bank, with the ceasefire negotiations, and with the mass movement inside Israel demanding elections to replace the repressive Netanyahu right-wing regime.

THE CLIMATE EMERGENCY: 

My immediate priority is helping to organize nonviolent direct action at the September 19th monthly meeting in Washington, DC of the commissioners who run FERC, the Federal Energy Regulatory Commission. FERC is responsible for the regulation of the US electrical grid, as well as deciding whether to grant permits for the expansion of the methane gas industry, which is today primarily a fracked gas industry.

When it comes to that second task FERC is a proven rubber-stamper: according to a study in 2022 by a House committee chaired by Jamie Raskin, between 2000 and 2020, out of 1,021 gas industry applications for permits to expand, only six were turned down. FERC is the epitomy of a rubber stamp agency.

There was a period of time in 2021 and 2022 when, under the leadership of Richard Glick (no relation), steps were taken to change this reality. In February, 2022, a Glick-led new policy was passed by a 3-2 vote of the FERC commissioners to mandate much stricter review of the greenhouse gas emissions and environmental justice impacts on local communities of proposed gas projects. In response coal baron Joe Manchin and Republicans on the Senate committee overseeing FERC brought heavy public pressure on the three Democrats who voted for it. Within a month, in March of 2022, one of them, Willie Phillips, changed his vote, no new policy was enacted and ever since, particularly after Manchin used his power to oust Glick at the end of 2022, followed soon after by Willie Phillips being named chair, FERC has continued with its rubber-stamping ways.

However, all is not lost! This summer, between mid-July and mid-August, the federal appeals court in DC which hears appeals of FERC decisions handed down three separate opinions voiding or remanding to FERC their approvals of permits for three LNG export terminals on the Gulf coast, a Texas pipeline and a pipeline project in NJ.

Why did this happen? Apparently a main reason is a Supreme Court decision on the “Chevron doctrine” earlier this year which weakened a 40-years long policy that courts should generally defer to internal decision-making processes of federal regulatory agencies. The not-so-Supremes said the courts could be more active in their oversight capacity. And the DC Court of Appeals took that decision and ran with it, to the detriment of the gas industry and the benefit of our disrupted climate.

On September 19th a coalition of climate action groups is organizing a large and visible presence outside and inside the first FERC commissioners meeting since these three decisions came down. A strong turnout will amplify the court decisions and ratchet up the public pressure on the FERC commissioners to finally do the right thing for local communities and the planet. Please learn more and plan to come if you can!

DEFEATING TRUMP/MAGA: What is the key to the defeat of would-be dictator, misogynist, racist and pathological liar Trump? ONE THING: A BIG TURNOUT! All of us who get it on the urgency of this election need to figure out how we can best take part in the phone calling, postcard writing and door knocking in the swing states of Wisconsin, Michigan, Pennsylvania, Georgia, North Carolina, Arizona and Nevada from now until November 5.

For myself I’ve begun to drive an hour and a half over to Pennsylvania on Saturdays to take part in door to door canvassing in the Allentown area, and I intend to keep doing so every Saturday that I can, which should be most of them. In addition this week I will start doing organized phone calling one, two or more evenings a week into swing states. I intend to “leave it all out on the field” in my small, one person way—which is all that most of us have!

I’m very glad that Harris and Walz, not Biden and Harris, are the Democratic nominees. That change has set in motion an historic and potentially powerful mass movement in defense of democracy and against the fascist threat. I love to see and hear the many thousands of people at Harris rallies chanting, “We won’t go back” and “When we fight, we win.” Without that fighting spirit on the part of millions, we have little chance of bringing about the transformational changes we need.

I am critical of more than a couple of the positions being taken, and not taken, by the national Democratic Party. I have no illusions that a Harris/Walz victory and Democratic control of the House and Senate will, alone, bring about the change this country and world desperately need, particularly right now on the climate crisis and Palestinian self-determination. But a winning result on November 5 will, in the words of the United Electrical Workers Union, allow us “to live to fight another day” and to do so with the wind at our back.

This result, for sure, is more than worth fighting for. If you are progressive it’s an existential necessity.


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Ted Glick

Ted Glick has devoted his life to the progressive social change movement. After a year of student activism as a sophomore at Grinnell College in Iowa, he left college in 1969 to work full time against the Vietnam War. As a Selective Service draft resister, he spent 11 months in prison. In 1973, he co-founded the National Committee to Impeach Nixon and worked as a national coordinator on grassroots street actions around the country, keeping the heat on Nixon until his August 1974 resignation. Since late 2003, Ted has played a national leadership role in the effort to stabilize our climate and for a renewable energy revolution. He was a co-founder in 2004 of the Climate Crisis Coalition and in 2005 coordinated the USA Join the World effort leading up to December actions during the United Nations Climate Change conference in Montreal. In May 2006, he began working with the Chesapeake Climate Action Network and was CCAN National Campaign Coordinator until his retirement in October 2015. He is a co-founder (2014) and one of the leaders of the group Beyond Extreme Energy. He is President of the group 350NJ/Rockland, on the steering committee of the DivestNJ Coalition and on the leadership group of the Climate Reality Check network

 

Hapag and Gasum Set Bio-LNG Supply Contract for Rotterdam-Singapore Route

Hapag-Lloyd containership
Hapag-Lloyd is taking delivery on its LNG-fueled ULCVs and will have a supply of bio-LNG to reduce emissions (Hapag-Lloyd)

Published Sep 2, 2024 7:58 PM by The Maritime Executive

 


A unique supply agreement has been set for the Nordic energy company Gasum to provide Hapag-Lloyd with bio-LNG to fuel containerships sailing between Singapore and Rotterdam in 2025 and 2026. The supply that will meet Hapag’s obligation under its contract with the cargo owners project, ZEMBA, is also seen as a key stepping stone toward the carrier’s goal to be net-zero carbon by 2045.

Bio-LNG is growing in favor among the shipping industry as an alternative that can reduce greenhouse gas emissions by up to 90 percent. Hapag will have one of the first large-scale supply contracts while Maersk also recently said it is also working on securing offtake agreements for liquified bio-methane (bio-LNG) as part of its fleet modernization program to ensure that its planned new dual-fuel gas vessels provide greenhouse gas emissions reductions in this decade. Bio-LNG is gaining due to the concerns for supply and cost of methanol as a marine fuel.

Hapag-Lloyd was announced in April 2024 as the winner of the first buyers’ agreement from ZEMBA (Zero Emission Maritime Buyers Alliance). The first-of-its-kind buyers alliance unites major shippers including Amazon, Patagonia, Bauhaus, New Balance, Nike, REI, and others which collectively agreed to purchase over one billion TEU miles on the route between Singapore and Rotterdam in 2025 and 2026. Hapag as the winner of the tender has agreed to provide an independently certified and exclusive waste-based biomethane service that can achieve at least a 90 percent reduction in greenhouse gases on a lifecycle basis relative to fossil fuel-powered shipping.

ZEMBA’s concept was by pooling demand they believe they can spur the fuel transition in shipping. Carriers bid for the contract assured of volumes and demand to help support the cost of the effort.

Gasum will bunker Hapag-Lloyd’s containerships with a total amount of 20,000 mt of bio-LNG during 2025-2026. The vessel will be operating on the Singapore-Rotterdam route effectively launching a long-distance green corridor. 

“This agreement demonstrates that the green transition in the maritime transport sector is picking up speed”, said Jacob Granqvist, VP of Maritime for Gasum. “We need all-hands-on-deck to drive the effort, and using bio-LNG to fuel maritime transports is an effective way to reduce emissions already today, rather than in a distant future.”

Gasum’s liquefied biomethane (bio-LNG) fuel is produced from waste feedstocks such as biowaste, sewage sludge, manure, and other industrial and agricultural side streams. On average, it will provide 90 percent lower emissions when compared with fossil fuel and the company highlights it can be used in all the same applications as natural gas, including as a road and maritime transport fuel and as energy for industry. The residual solids and liquids created in the biogas production process are also further processed and used as, for example, fertilizers in agriculture or raw material in industrial processes.

Gasum produces biogas in its own 17 biogas plants in Finland and Sweden and has supply contracts from other partners. The company says its goal is to offer seven TWh of renewable gas by 2027, including biomethane and e-methane. Achieving this goal would result in a combined CO2 reduction of 1.8 million tonnes per year.

Sunday, September 01, 2024

EU imports from Russia drop to record lows but signs of sanctions circumvention persist


By Thomas Moller-Nielsen | Euractiv
Aug 28, 2024


Shutterstock/Darunrat Wongsuvan
 Euractiv is part of the Trust Project >>>


While EU imports from Russia slid to record lows in the second quarter of 2024, signs persist that Brussels’ sanctions on Moscow are being circumvented via trade with third countries.

Data published by the EU’s official statistics office on Wednesday (28 August) showed that the bloc’s imports from its eastern neighbour slid 16% from the first to the second quarter of 2024.

In June, the total value of imported goods dropped to €2.47 billion—the lowest monthly amount since Eurostat, the EU’s official statistics office, began collecting data in January 2002.

This followed April and May, which saw the second and third lowest recorded monthly imports, at €2.66 billion and €2.89 billion, respectively.

Exports registered a similarly steep decrease, dropping 9.5% in the second quarter to reach €2.43 billion in June, the lowest amount since January 2003 and the third-lowest ever recorded.

EU imports from Russia fell dramatically in the immediate aftermath of Moscow’s full-scale invasion of Ukraine in February 2022 but have declined at a more gradual pace since the second quarter of 2023.

Exports, meanwhile, experienced a steep – albeit less dramatic – decline following Russia’s invasion but have fallen at a similarly steady rate since the middle of 2022.

Philipp Lausberg, analyst at the European Policy Centre (EPC), told Euractiv that one likely reason for the trade quasi-stabilisation is that the more recent rounds of Brussels’ 14 packages of sanctions against Moscow have placed much less emphasis on banning the purchase of specific goods, such as oil and coal.

“The last two sanctions package […] focussed more on enforcement and preventing circumvention,” he said. “So I think it makes sense that we’ve reached a low that is more-or-less constant.”

Alexander Kolyandr, non-resident senior fellow at the Centre for European Policy Analysis (CEPS), suggested that another potential reason for the trade “equilibrium” is the relative stabilisation in commodities prices – especially energy prices – since the beginning of 2023.

“Russia is selling LNG [liquefied natural gas], there is no way for Russia to increase [supply], Europe doesn’t want to decrease [purchases of] whatever is coming from Russia – and so the bottom line figure basically depends on the market price of the commodities,” he told Euractiv.
Circumvention trend persists, but costs to Kremlin may be ‘significant’

The Eurostat data comes amid persistent concerns over sanctions circumvention, with trade between European countries and those in Asia, the Caucasus and the Middle East experiencing a steep increase since February 2022.

Kolyandr noted that, from 2021 to 2023, EU exports to Uzbekistan almost doubled from (€2.30 billion to €4.35 billion), sales of goods to Armenia nearly tripled (€757 million to €2.16 billion), and exports to Kyrgyzstan rose more than tenfold (€263 million to €2.73 billion).

“Russia has been proven to be able to circumvent sanctions by trading with third countries,” the analyst said, adding that non-former-Soviet countries such as China and Turkey could also represent key circumvention routes.

Lausberg, meanwhile, said that, although circumvention remains a major problem, “If Russia has to sell via a third country, that third country makes some cash with it that Russia loses.”

“And when Russia buys stuff like high-technology [products] and electronics, it’s more expensive than it used to be,” he added.
Russian economy overheated

Meanwhile, the two analysts noted that the EU and Russia seem to have embarked on diverging economic trajectories, with the latter enjoying much healthier economic growth – though that is not necessarily good news for the Eastern country.

According to the International Monetary Fund, Russia’s economy is expected to grow three times faster than the EU economy this year (3.2% vs 1.1%) after expanding six times more last year (3.6% vs 0.6%).

The country’s manufacturing sector has also experienced a significant boom since the beginning of the Ukrainian conflict, while Europe’s industrial sector remains mired in stagnation or decline.

Lausberg, however, noted that Russia’s strong economic performance is the result of a “rebound” from its steep economic slump in 2022, in no small part thanks to hefty increases in military expenditures – which he said have not only “distorted” the country’s economy but do not represent “an investment in the long run.”

He also pointed out that Russia is still grappling with severe economic problems, including profound labour shortages and elevated prices for high-tech imports.

“In the long [term], you can’t really run an economy with high-cost imports of technology [or] if you don’t have a labour force that can actually deliver what you want to produce,” the analyst said.

Kolyandr also noted the Russian economy continues to show signs of “overheating” (a process whereby supply falls short of meeting heightened demand, generating strong inflationary pressures).

He said virtually every economic metric corroborates the trend, with unemployment currently hovering at about half its historical average and real salaries rising more than two times faster than the country’s GDP.

Echoing what he previously argued about the country’s recent economic patterns, Kolyandr added, “In my view, the Russian economy is mortgaging its future.”

[Edited by Anna Brunetti/Alice Taylor-Braçe]

Friday, August 30, 2024

Fracking and the Green New Deal: What is Kamala Harris's track record on climate change?

Euronews Green
Fri, August 30, 2024


Kamala Harris has said her "values have not changed" on key issues such as climate change during her first major TV interview of this election campaign.

The US vice president is hoping to see off Republic contender Donald Trump in the election on 5 November. President Joe Biden endorsed her when dropping out of the race in July.

As the world’s largest historical contributor to climate change - still the second largest today after China - America’s political direction has huge ramifications for the rest of the planet.

Unsurprisingly this means the vice president’s track record on climate and environmental matters is in the spotlight.

What is Kamala Harris's position on climate change?

With only a few months to go until the election, Harris is unlikely to move far from Biden’s platform.

In an exclusive interview with CNN this week, she said that, despite shifts in her position on topics like fracking during her political career, her values have not changed.

In 2019, Harris said there was "no question" that she was in favour of banning fracking. But during her time in the Biden administration that position changed.

She told the US news channel on Thursday that she has seen that the US can grow and can "increase a thriving clean energy economy without banning fracking", adding that she had made clear in 2020 that she wouldn't ban the practice.

Harris also pointed to the Inflation Reduction Act - which pledged hundreds of billions of dollars in tax subsidies and grants for renewable energy projects - as an example of her climate record. Biden promised it would boost green jobs, support communities on the frontlines of pollution and more.

"You mentioned the Green New Deal. I have always believed - and I have worked on it - that the climate crisis is real, that it is an urgent matter to which we should apply metrics that include holding ourselves to deadlines around time. We did that with the Inflation Reduction Act," Harris said.

Her running mate, Tim Walz, also has a record of climate action in his home state. Last year, as Governor of Minnesota, he signed a law requiring all of the state's power plants to use 100 per climate-friendly energy, such as wind and solar power, by 2040.
A history of climate legislation

Harris would be taking over from a president who is proud of his climate record - and rightly so according to many experts.

In his letter to the nation on 21 July, Biden emphasised that on his watch, America “passed the most significant climate legislation in the history of the world” - referencing the Inflation Reduction Act.

“Biden will leave office with the strongest climate record of any president - making the largest ever investment in clean energy, regulating to reduce pollution from cars & power plants, bolstering clean energy supply chain resilience, & reasserting US global climate leadership,” says Jason Bordoff, founding director of Columbia's Center on Global Energy Policy.

On his first day as president in January 2021, Biden rejoined the Paris Agreement that his rival and predecessor Trump had taken the country out of.


President Joe Biden raises the hand of Vice President Kamala Harris after viewing the Independence Day fireworks in Washington, 4 July 2024. - Evan Vucci/AP

Harris was right there with him (that’s the vice president’s job) and has suggested she will take this green legacy forward. As the US’s top representative at the UN climate conference in Dubai last year, she said the world “must do more” on this vital issue.

At the same time, climate campaigners have criticised Biden’s administration for not doing more.

During his term, the US extended its lead as the world’s largest oil producer, and became the biggest exporter of liquefied natural gas (LNG).

Many environmentalists want to see the Democrats go much further in halting fossil fuel extraction. But are agreed that another four years with Trump at the helm - beside climate sceptic running mate JD Vance - is worth uniting against.
Previous Kamala Harris climate policies

This isn’t the first time Harris has run for president, and her short-lived 2019 bid provides some insights into her thinking - as does her record as California attorney general from 2011-2017.

In that role, she investigated ExxonMobil for misleading the public about climate change. Harris also prosecuted a pipeline company, Plains All-American Pipeline, over an oil spill off the California coast in 2015. And she secured an $86 million (€79 million) settlement for the state from car company Volkswagen for allegations of cheating on diesel emissions tests.

Prior to that, as San Francisco’s district attorney from 2004-2011, Harris created what she called the country’s first environmental justice unit to address environmental crimes (like hazardous waste dumping) against the district’s poorest residents.

"Crimes against the environment are crimes against communities, people who are often poor and disenfranchised," Harris said in 2005. "The people who live in those communities often have no other choice but to live there."

Commentators hope this impressive CV, and framing of pollution as crime, indicates a willingness to get tougher with the fossil fuel industry than Biden has.

Harris’s 2019 presidential bid supports this optimism too.

Back then, she called for a climate pollution fee that would "make polluters pay for emitting greenhouse gases into our atmosphere.” Harris also indicated that America would strengthen its enforcement and prosecution of fossil fuel companies under her leadership.

Another notable milestone on Harris’s climate CV: while serving as a California senator in 2019, she threw her support behind the Green New Deal as an early co-sponsor.


This ambitious blueprint for a green economy, first introduced by AOC and senator Edward Markey, proposed transitioning to 100 per cent clean energy within a decade.

Climate campaigners still believe in this agenda for a just transition and endorsements for Harris have rolled in from groups that see her as a potential ally on issues like climate change.

“We would fall out [of] a coconut tree for someone who ran on this,” Sunrise Movement, a coalition of young climate activists, posted on Instagram, referencing a Harris quote about everyone coming from somewhere rather than simply falling from a coconut tree.

She has so far picked up support from groups including the Sierra Club, the League of Conservation Voters and the Green New Deal Network alongside backing from former US climate envoy John Kerry.


 

What is Natural Gas Flaring and What Can We Do About It?

  • Natural gas flaring is a significant contributor to greenhouse gas emissions and environmental concerns.

  • Innovative ways to reduce natural gas flaring include the use of microturbines, GTL technology, pipelines, carbon capture technology, and bitcoin mining.

  • These solutions provide alternative uses for excess natural gas while promoting sustainable practices within the oil and gas industry.



In the heart of oil and gas operations lies a practice as old as the industry itself: Natural gas flaring. This process, which involves the controlled burning of excess natural gas produced during oil extraction, has been a mainstay for decades. While it might appear as an unavoidable byproduct of oil production, natural gas flaring casts a long shadow of environmental consequences that demand our attention.

From contributing to climate change through the release of potent greenhouse gases to impacting local air and water quality, the repercussions of flaring are far-reaching. It's a practice that not only squanders a valuable energy resource but also poses risks to human health and ecological balance. As the world grapples with the urgent need to transition towards cleaner energy sources and mitigate climate change, the spotlight on natural gas flaring intensifies. It begs the question: is it truly a necessary evil, or can we find sustainable alternatives?

What is Natural Gas Flaring?

Natural gas flaring is the deliberate combustion of natural gas that is deemed uneconomical or impractical to capture and utilize. This excess gas, often found alongside crude oil deposits, poses a challenge due to its gaseous state, making it difficult to store and transport compared to liquid oil. In the absence of adequate infrastructure or viable markets for this gas, flaring becomes the default solution.

The process typically involves igniting the gas at the wellhead, creating a towering flame that illuminates the night sky. While seemingly simple, this act releases a cocktail of pollutants into the atmosphere, including carbon dioxide, methane, and other harmful substances.

As we delve deeper into this complex issue, we'll explore the environmental and economic impacts of flaring, the ongoing efforts to reduce its prevalence, and the innovative solutions that offer a glimmer of hope for a cleaner energy future.

How Does Natural Gas Flaring Happen?

Natural gas is often found alongside crude oil deposits. When drilling for oil, natural gas is also extracted from the ground. However, unlike crude oil, which can be stored and transported easily, natural gas is more difficult to transport and store due to its gaseous state. This is where natural gas flaring comes in.

During oil drilling operations, natural gas that cannot be captured or transported is burned off at the well site. This process involves igniting the natural gas as it exits the wellhead, resulting in a bright flame that can be seen from miles away.

Environmental Impact of Natural Gas Flaring

Natural gas flaring has a significant environmental impact. The most obvious is the release of greenhouse gases into the atmosphere. Methane, the primary component of natural gas, is a potent greenhouse gas, significantly contributing to climate change. According to the World Bank, global gas flaring resulted in the emission of approximately 400 million tons of CO2 equivalent in 2022, contributing to global warming and climate change.

Flaring also impacts air and water quality. It releases pollutants such as carbon dioxide, nitrogen oxides, and sulfur dioxide, which can harm human health and the environment. Additionally, flaring can contribute to light and noise pollution, affecting wildlife and ecosystems in the surrounding areas.

Economic and Social Impacts

Besides the environmental concerns, gas flaring represents a substantial waste of valuable energy resources. The World Bank estimates that the value of gas flared annually is around $40 billion. This wasted gas could be used to generate electricity, provide heat, or be utilized as feedstock for various industries.

In developing countries where flaring is prevalent, the economic and social impacts can be particularly severe. The loss of potential revenue from gas utilization can hinder economic development, while the environmental pollution from flaring can disproportionately affect vulnerable communities.

Reducing Natural Gas Flaring

There are several solutions being implemented around the world aimed at reducing or eliminating natural gas flaring. 

Build More Pipelines

One solution involves capturing and transporting excess natural gas instead of burning it off at the wellhead. This requires building new infrastructure, such as pipelines or liquefied natural gas (LNG) plants.

Use Microturbines To Produce Power

Another approach is the use of microturbines, which can generate electricity from excess natural gas that would otherwise be burned off. These small turbines are highly efficient and can provide power for various applications such as remote oil rigs or pipeline operations. This solution not only reduces greenhouse gas emissions but also provides a cost-effective way to produce electricity in areas where traditional grid connections may not be available.

 

Flare-gas-to-liquids (GTL) technology: This innovative technology presents a groundbreaking solution to mitigate gas flaring and foster a greener energy landscape. By transforming waste gases generated from flaring into valuable liquid fuels like diesel, gasoline, or jet fuel, GTL provides a practical and sustainable use for excess natural gas. This process not only significantly reduces greenhouse gas emissions but also contributes to a circular economy by repurposing a previously wasted resource.

 

Carbon Capture and Storage Technologies

Some oil companies are using carbon capture technology to capture carbon dioxide emissions from natural gas flaring and store them underground. This approach not only reduces greenhouse gas emissions but also promotes carbon sequestration, which can help mitigate climate change impacts.

Bitcoin Mining

Bitcoin mining has been a controversial topic due to its high energy consumption and potential environmental impact. However, some bitcoin miners are using their operations to help reduce natural gas flaring. These miners are taking advantage of the excess natural gas that is often burned off at oil drilling sites by using it to power their mining rigs.

By using this excess natural gas, bitcoin miners are not only reducing greenhouse gas emissions from flaring but also providing an alternative use for a resource that would otherwise go to waste. This practice has gained traction in areas where natural gas flaring is common such as Texas and North Dakota, where bitcoin miners have partnered with oil companies to access excess natural gas.

Success Stories

While the challenges posed by natural gas flaring are undeniable, success stories from around the world demonstrate that progress is possible. These examples highlight the power of innovation, collaboration, and effective policymaking in driving flaring reduction and promoting a more sustainable energy future.

Let's explore two such stories that illuminate the path towards a world with minimal gas flaring.

The United States: A Model of Progress

The United States stands as a testament to the potential for significant flaring reduction through concerted efforts. A combination of technological advancements, regulatory measures, and market-driven initiatives has spurred remarkable progress in curbing flaring, particularly in regions like the Permian Basin.

Historically, the Permian Basin in Texas and New Mexico was notorious for its high levels of flaring due to a lack of adequate infrastructure to capture and transport associated gas. However, recent years have witnessed a dramatic shift. The expansion of pipeline networks, coupled with the adoption of innovative technologies such as microturbines and mobile gas processing units, has enabled the capture and utilization of a greater proportion of associated gas, significantly reducing flaring intensity.

Regulatory measures have also played a crucial role. State-level regulations, coupled with voluntary industry initiatives, have incentivized companies to minimize flaring and invest in gas capture and utilization projects. This multi-pronged approach has yielded impressive results, showcasing the potential for substantial flaring reduction even in challenging operational environments.

Nigeria: Leading the Way in Africa

Nigeria, once plagued by rampant gas flaring, has emerged as a leader in flaring reduction efforts on the African continent. The Nigerian government has demonstrated a strong commitment to tackling this issue through a combination of regulatory measures, policy reforms, and collaborative initiatives with industry stakeholders.

The Gas Flare (Prevention of Waste and Pollution) Regulations 2018, a landmark piece of legislation, imposes stricter penalties for non-compliance and encourages companies to invest in gas utilization projects. Additionally, the government has fostered partnerships with international organizations and oil companies to develop infrastructure and facilitate gas utilization projects.

These efforts have translated into tangible progress. Nigeria has witnessed a significant decline in flaring volumes, contributing to improved air quality, reduced greenhouse gas emissions, and enhanced economic opportunities. The Nigerian experience serves as an inspiration for other countries grappling with flaring challenges, highlighting the importance of strong political will, effective regulatory frameworks, and collaborative partnerships in achieving sustainable solutions.

Conclusion

Natural gas flaring remains an issue for both industry stakeholders and environmentalists alike, given its negative impacts on climate change through GHG emissions, among others. 

The good news, however, lies in global efforts towards reduction through innovations like micro-liquefaction technology while regulatory measures continue playing their role towards environmentally sustainable practices within this sector. 

Many countries and companies are taking action to reduce flaring and implement sustainable practices. As technology continues to advance, we can expect even more innovative solutions. It's important that everyone plays their part in protecting the environment and reducing greenhouse gas emissions. With continued effort and collaboration, we can create a cleaner, greener future for generations to come.

By Michael Kern for Oilprice.com