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KPI: Flaring

Since 2001, Exploration & Production has reduced the amount of natural gas flared from oil wells by more than 70%, mainly thanks to a multi-billion dollar programme to collect this gas from oil production and bring it to market.

Oil fields produce a mix of oil, water and natural gas. Where there were no nearby markets, it was standard practice in the industry to vent or burn off (flare) the gas for safe disposal. Flaring turns the gas into CO2, which is a less potent greenhouse. While better than venting, flaring is still a big source of greenhouse gas emissions (GHGs). The noise, heat and light from the flare can disturb our neighbours, animals and raise health concerns. It also wastes a valuable energy resource.

We ended the continuous venting of natural gas in 2003. We have a commitment to end continuous flaring as well. This will require us to invest in the equipment needed to collect the gas at oil wells and either re-inject it underground or transport it to places where it can be used - for example, for generating power or to make liquefied natural gas (LNG).

By 2008, we had effectively ended continuous flaring everywhere outside Nigeria. Only five sites outside Nigeria, representing less than 0.5% of our total CO2 emissions, still continuously flare for technical or safety reasons.

Continuous flaring has not yet been stopped in Nigeria, which on average accounts for 80% of our remaining upstream flaring. Since 2001, the Shell operated joint venture in the Niger Delta has invested around $3 billion on projects to capture and use gas formerly flared. By the end of 2008, these projects had reduced associated gas flaring by more than 30%. Projects costing a further $3 billion or more will be needed to meet our commitment to end all remaining continuous flaring in Nigeria. In 2008, work continued on those projects where funding and safe access were available.

In 2008, total flaring in Exploration & Production (including the non-continuous flaring which is needed for safety reasons) dropped again. This was mostly due to reduced flaring in Malaysia and Gabon as operational improvement programmes showed results.