‘Zero Routine Flaring by 2030’: a new global industry standard
Jane Cutler A C , Bjorn Hamso B and Francisco Sucre BA Independent Consultant, PO Box 2581, Mount Claremont, WA 6010, Australia.
B World Bank Group, 1850 I Street NW, Washington, DC 20433, USA.
C Corresponding authors. Email: Lcutler@worldbank.org; jc@snowfox.me
The APPEA Journal 58(2) 533-537 https://doi.org/10.1071/AJ17132
Accepted: 1 March 2018 Published: 28 May 2018
Abstract
The World Bank-introduced ‘Zero Routine Flaring by 2030’ (ZRF) Initiative is well on its way to establishing a new global industry standard; one that is very important if governments and industry are to make significant strides to help mitigate climate change.
Launched in 2015 by the UN Secretary-General and World Bank President, ZRF commits governments and oil companies to (a) not routinely flare associated gas in new oil field developments, and (b) to end routine flaring at existing (legacy) fields by 2030. (Routine flaring is defined as flaring during normal oil production operations in the absence of sufficient facilities or amenable geology to re-inject the produced gas, utilise it on-site, or dispatch it to a market. The ZRF Initiative clearly states that venting is also not an acceptable substitute for flaring.)
A review of the governments and companies that have already endorsed ZRF reveals that many of the major producers recognise the value of making a public commitment and working to end a 150-year-old industry practice. There are now over 70 endorsers, but more governments and companies must join the global effort if there is to be real progress and establishment of a de facto industry standard. Those that have endorsed the ZRF Initiative say it has other tangible benefits. For example, the many international oil companies that already have a no-flaring policy for new oil field developments consider the Initiative a positive contribution because it will level the playing field – other companies would adopt the same good practice and governments would require it. So, the Initiative also reduces regulatory uncertainty and risk.
To achieve ZRF on a global scale, collaborative action such as through the Global Gas Flaring Reduction Partnership (GGFR) – a public-private initiative comprising international and national oil companies, national and regional governments, and international institutions – will be required. GGFR is focused on increasing the use of natural gas associated with oil production by helping remove technical and regulatory barriers to flaring reduction, conducting research, disseminating best practices, and developing country-specific gas flaring reduction programs.
GGFR is also focused on helping develop financing tools for flare-out projects, such as a new program with the Global Infrastructure Facility (GIF) to fund feasibility studies of solutions to monetize flared or vented gas from onshore and offshore oil production facilities.
Keywords: GGFR, Global Gas Flaring Reduction Partnership, ZRF.
Jane Cutler is an independent non-executive director and specialist consultant. She is currently assisting the World Bank with the Zero Routine Flaring by 2030 Initiative within Australia and the region. She is currently a director of Australian Maritime Safety Authority (AMSA), WA Councillor of the Australian Institute of Co. Directors (AICD) and Director of WestCycle. Jane’s most recent executive role was as CEO, National Offshore Safety and Environmental Management Authority (NOPSEMA). She has held CEO and Vice President positions with Woodside Energy, Plum Financial Services, and SuperPartners. Prior roles have been with Esso Australia and BHP Petroleum. Jane is a Fellow of AICD and the Institute of Chemical Engineers (IChemE). Jane holds a Master of Business Administration, Master of Environmental Studies and Bachelor of Engineering. |
Bjorn Hamso is the Program Manager for the World Bank-led Global Gas Flaring Reduction Partnership (GGFR), which manages the ‘Zero Routine Flaring by 2030’ Initiative that aims to end an oil industry practice that the world can no longer afford. Before taking on this position in 2013, Bjorn managed World Bank investment projects in the gas and power industry in India, Pakistan and in Europe and Central Asia. He has had a long career in Norwegian oil company Statoil, notably in marketing and negotiation of Norwegian gas to European buyers. He was Director for Statoil’s marketing of electricity in Scandinavia before joining the World Bank in 1999. Bjorn also has experience in the 1990s from the USA gas industry as a Senior Vice President for business development in Eastern Group Inc. He has a Master’s Degree in Economics and Business Development. |
Francisco J. Sucre is currently the Regional Co-ordinator for America and Asia at the Gas Flaring Reduction Partnership (GGFR) within the Energy and Extractive Practice at the World Bank Group. He has more than 20 years of experience in environmental, health and safety issues in oil and gas operations, and climate change mitigation projects and carbon finance. Before the World Bank, he worked at ExxonMobil as Environmental, Health and Safety Advisor in upstream and downstream, and Production Operation Co-ordinator. Francisco subsequently worked as Technical Co-ordinator for carbon finance projects at the Corporación Andina de Fomento in Latin America and later joined the World Bank as Senior Energy Specialist. |
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