RECENT news of flaring offshore Guyana is undeniably disappointing from an environmental standpoint. Stabroek Block operator, ExxonMobil, had announced that flaring would be reduced to the pilot level after a gas compressor issue was fixed late last year, but after two months of reduced flaring levels, equipment issues are again causing temporary higher flaring.
It is important to understand that some low level of flaring is an inevitable consequence of oil production. This is true around the world, not just in Guyana.
While most produced natural gas is safely reinjected into the ground or used to power the Floating Production Storage and Offloading (FPSO) vessel, a very small amount of excess gas called a pilot flare must be continuously burned to maintain safety onboard FPSO vessels. Even though flaring remains an important safety measure, it is meant to be used rarely and as a precautionary measure. The design for the vessel in Guyana does not include routine flaring above the pilot level.
Thankfully, ExxonMobil is still reinjecting most of the natural gas it’s producing in Guyana back into the ground. The current equipment issue means that less gas than usual is being reinjected and the remainder is being flared. This is far from an ideal situation, and it’s understandable that the government and others are concerned. But in a global context, the amount of natural gas being flared in Guyana is miniscule. It is difficult to see how it will diminish the country’s commitment to sustainable development.
Recent media reports highlighted that 10 billion cubic feet of gas were flared in Guyana in 2020. To put this into perspective, Nigeria flared over 275 billion cubic feet of produced natural gas, and Algeria flared nearly 330 billion cubic feet of gas in 2019. Indeed, World Bank data make it clear that Guyana is not even close to being in the top 30 countries for flaring. It’s worth noting that there has been some misinformation in Guyana because organisations have compared measurements in cubic feet with measurements in cubic metres, making the problem appear much larger than it is.
Ecuador, which was number 30 on the World Bank’s list, flared 32 billion cubic feet of gas in 2019. That’s three times more than Guyana in 2020. The number one flaring country in 2019, Russia, flared nearly 820 billion cubic feet of gas in one year, or 80 times more than Guyana. Even with increased levels of flaring due to the compressor issues, Guyana’s total flaring since first production is a fraction of what the largest oil-producing countries flare each week. From a daily greenhouse gas emissions perspective, the current level of flaring is comparable to emissions from Guyana Power and Light and less than emissions from either the transportation sector or the agriculture sector.
Of course, it is important to reduce this number, and repairs to the Liza Destiny FPSO equipment this year should help, but context is lacking.
Some people use flaring on a per capita level to argue that Guyana’s flaring levels are too high. This measurement will always be unfair to countries with small populations, including Guyana, and more favorable to larger countries like the United States or Brazil. This is one reason the World Bank measures flaring by country. Guyana is simply not a major flaring country by this measure.
The World Bank does have guidance for oil-producing countries that is important to Guyana. In 2015, it launched the “Zero Routine Flaring by 2030 Initiative,” targeting rapid and significant reductions in routine flaring and ensure that developing countries are working to end poverty and build shared prosperity in a sustainable manner.
The projects offshore Guyana are in line with the World Bank’s initiative, which will continue to set the country apart from global oil producers that have utilized flaring for decades. Indeed, Guyana’s plans to avoid routine flaring line up with those of environmentally conscious oil producers like Norway and Canada, which boast some of the strictest environmental standards.
As a new oil producer, setbacks like the gas compressor issue are frustrating, and it is important that they do not become long-term issues. Low flaring levels consistent with the World Bank Initiative and sustainable oil and gas development have allowed Guyana to remain committed to its sustainable development goals and Low Carbon Development Strategy.
Embracing global best practices for extracting oil and gas is an important piece of maintaining Guyana’s sustainable development goals. Currently, Guyana is ranked second in CARICOM for the promotion of long-term, sustainable, and inclusive economic growth, while supporting full and productive employment. Fixing temporary flaring and sustaining Guyana’s commitment to zero routine flaring will be a part of continuing progress toward the larger objective of sustainable development.
