FINWIRES · TerminalLIVE
FINWIRES

Global Gas Flaring Hits Highest Level Since 2007, OIES Says

By

Global gas flaring rose in 2024 to its highest level since 2007, with volumes of associated gas burned during oil production continuing to underscore a decade-long failure to materially curb waste and emissions, the Oxford Institute for Energy Studies strategists said in a note on Wednesday.

OIES analysts said that despite repeated international commitments to reduce routine flaring, the amount of gas flared per barrel of oil produced has remained broadly unchanged for about 15 years, highlighting a persistent structural challenge in upstream oil and gas operations.

The increase in 2024 volumes was driven primarily by a small group of major producers, the energy institute said.

The top nine flaring countries, the same core group identified in 2012, albeit in slightly different order, increased their combined flaring by about 30% over the period, lifting their share of global totals to 83% in 2024.

Though most other countries showed improvement, the broader global picture was less encouraging.

OIES said that about three-quarters of more than 60 countries that flare above 0.01 bcm per year reduced their volumes over the same timeframe, indicating that mitigation efforts have been successful outside the largest emitters.

However, the energy institute said the improvement has been insufficient to offset increases elsewhere.

Structural constraints continue to limit progress, including persistently low domestic gas prices in some producing regions, as well as sanctions and geopolitical instability that restrict investment in gas capture and utilization infrastructure.

OIES said that ongoing geopolitical tensions, including the war between Russia and Ukraine and the Middle East conflict, are further headwinds. Energy infrastructure has increasingly become a target in conflict zones, with damage to upstream processing and gathering systems exacerbating flaring levels.

Going forward, the OIES said global flaring in 2025 is unlikely to show meaningful improvement, with Russia in particular expected to remain a major contributor amid continuing conflict-related disruptions.

The institute said that 2026 could see further increases if damage to oil and gas infrastructure in the Gulf region persists.

Related Articles

Oil & Energy

US Oil Update: Crude Settles Higher as US-Iran Talks Stall, EIA Tightens Outlook

Crude oil futures settled higher in after-hours trading on Tuesday after President Trump described ceasefire talks with Iran as being on "life support," while the Energy Information Administration warned of massive inventory draws as the Strait of Hormuz remains closed.Front-month West Texas Intermediate crude futures rose by 4.06% to $102.05 per barrel, while Brent futures were up 3.02 % to $107.33/bbl.Oil prices extended gains on Tuesday as markets reacted to renewed uncertainty around US-Iran negotiations and the broader Middle East conflict, Liquidity Energy strategists said.Trump rejected Iran's counteroffer to a US proposal to end the Middle East conflict, as the US President dismissed Tehran's offer as "garbage" and warned that the ceasefire is on "life support."Iranian authorities, in contrast, have called for an end to the war on all fronts, including Lebanon, where Israel is fighting Iran-backed Hezbollah militants. Tehran also demanded compensation for war damage and resumption of Iranian oil sales.Iran's parliament speaker Mohammad-Bagher Ghalibaf posted on X on Tuesday, "There is no alternative but to accept the rights of the Iranian people as laid out in the 14-point proposal."Separately, Ebrahim Rezaei, a spokesperson for the Iranian parliament's foreign policy and security committee, said the country could enrich uranium to up to 90% purity if the US-Israeli alliance launches another attack, according to Iranian media."Oil prices climbed for a second day as the global oil market continued to tighten amid limited prospects for a reopening of the Strait of Hormuz," Saxo Bank strategists said in a note.Meanwhile, the continued closure of the Hormuz since late February has severely disrupted global flows of crude, fuels, and gas, with the International Energy Agency calling it the biggest supply shock in history.Commercial shipping via the Hormuz has slowed to a trickle, with data analytics firm Kpler projecting that 79% of 53 vessels that entered the Persian Gulf before the outbreak of the conflict are unable to exit.Daniel Hynes, senior commodity strategist at ANZ, said Trump is considering renewing Project Freedom, aimed at guiding vessels through the Strait.On the supply front, disruptions to crude oil production in the Middle East have surged since April, with major Gulf producers collectively shutting in about 10.5 million barrels per day, according to the US Energy Information Administration's latest Short-Term Energy Outlook.The EIA said Iraq, Saudi Arabia, Kuwait, the UAE, Qatar and Bahrain have all curtailed output amid the ongoing Middle East conflict, with the Hormuz assumed to remain effectively closed until late May.The agency now projects global crude inventories to fall by an average of 8.5 million barrels per day in Q2, while prices will average $89 per barrel by Q4. The EIA now projects that the Hormuz will remain effectively closed through late May, a month longer than its April estimate.

Oil & Energy

DiagnosTear Seals Deal to Commercialize Eye Imaging Platform

DiagnosTear (DTR.CN) on Tuesday said it reached a deal to commercialize the Clarify eye imaging platform developed by Sheba Impact and Tel Aviv University.Clarify enables AI-driven blood analysis through a simple eye scan, eliminating the need for needles and traditional blood draws. If successfully developed and clinically validated, Clarify could provide instant measurement of critical blood markers such as red blood cells, hemoglobin and potentially white blood cells and other biomarkers through a quick, needle-free eye scan, a statement said.Under the agreement, DiagnosTear receives exclusive global rights to develop, manufacture, and commercialize Clarify-based products. The licensors retain ownership of the underlying intellectual property.Key terms include a 3% royalty on annual net sales up to US$20 million."This agreement secures exclusive access to a technology that could redefine how blood diagnostics are performed at some selected common clinical scenarios," said Dr. Shimon Gross, DiagnosTear chief executive.DiagnosTear shares closed unchanged at $0.30, on the Canadian Securities Exchange.

$DTR.CN
Oil & Energy

EIA Cuts Henry Hub Forecasts for 2026, 2027 as US Production Rises, Inventories Build

The Energy Information Administration has lowered its Henry Hub spot price forecast for 2026 to $3.50 per million British thermal units, down from $3.67/MMBtu in April, the agency said in its Short-Term Energy Outlook for May released Tuesday.It has also lowered its 2027 Henry Hub spot price forecast of $3.59/MMBtu to $3.18/MMBtu, a downward revision of about 11.5%.The revisions were in anticipation of heightened production. "With higher production, we expect natural gas injections into storage during the April-October injection season to be above average," the EIA said.It added that the Henry Hub price is expected to average $2.83/MMBtu in Q2 2026, about 11% lower than a year earlier.US dry natural gas production will rise to 110.6 billion cubic feet per day in 2026 from 107.7 Bcf/d in 2025 before increasing further to 115 Bcf/d in 2027, the EIA forecast showed.US natural gas consumption will ease to 91.24 Bcf/d in 2026 from 91.88 Bcf/d in 2025 before rising to 94.42 Bcf/d in 2027, according to the EIA outlook.The EIA expects US LNG exports to increase to 17 Bcf/d in 2026 from 15.1 Bcf/d in 2025 before climbing further to 18.2 Bcf/d in 2027.The EIA forecasts US natural gas inventories will end the injection season on Oct. 31 at 7% above the previous five-year average.US marketed natural gas output rose 4% to average 120.2 Bcf/d in Q1 2026, compared with the year-ago period."We expect production to keep rising through 2027, with associated natural gas output increasing as higher crude oil prices support more crude oil production," the EIA said.Output growth of about 6% in both the Permian and Haynesville regions pushed natural gas production levels higher.EIA raised its forecast of marketed natural gas production by 1% in 2026 and by 2% in 2027 compared with last month's forecast. This upward revision was based on EIA analysis that shows rising gas-to-oil ratios from many wells in the Permian region.US liquefied natural gas export capacity surged by about 0.9 billion cubic feet per day in April, driven by the first cargo shipped from Golden Pass LNG Train 1 and Corpus Christi Stage 3 additional production, EIA data showed."Corpus Christi Train 6 is scheduled to come online in summer 2026, adding an additional 0.2 Bcf/d of nominal export capacity, but long lead times for adding new export capacity will constrain growth in US LNG exports," the EIA said.However, global LNG prices remain supported by reduced flows through the Strait of Hormuz and a wide spread between US domestic natural gas prices and international markets."Our March and April export estimates are the second- and third-highest ever, behind December 2025 (18.4 Bcf/d)," EIA said.EIA data showed that LNG exports fell to 17.6 Bcf/d in April from 18.1 Bcf/d in March, dragged down by milder weather globally and lower spot-market demand.