– News

Gas Flaring reduces during Covid lock-downs

Jul 01, 2020

Oil & Gas Industry

Satellite data show near real-time reduction in oil and gas production as COVID impact and OPEC reductions take effect

Source: Google Earth, SkyTruth.org: global gas flaring on 30 June 2020

With the financial / economic strain caused by COVID-19, governments and companies are likely to delay investments and other measures that facilitate energy transition to lower carbon solutions. Carbon taxes, environmental regulations, infrastructure solutions are put off to avoid additional costs and reduction in global competitiveness during the longer recovery period.

Moreover, reduced emissions during the COVID period could be used as an excuse that much progress has been achieved in reducing emission targets. There are strong market signals that COVID-19 significantly reduced gas flaring in the US, as shut-in oil production primarily targeted remote areas with limited oil storage facilities and other (gas) infrastructure. Large oil production reductions have also been recorded in Russia, coinciding with a reduction in gas flaring, as OPEC+ production reduction agreement took effect. 

Sustained lower oil prices also increases oil competitiveness against other (low carbon) alternatives.  However, in the long run, financial investors may no longer be willing to cope with persistent oil price volatility and the consequent risks and divert their finance in more sustainable low carbon energy opportunities.

 

Access the full paper here: https://energycc.com/blogs/covid-19impact.html 

 

 

Source

Share this article

Read Other News

EnergyCC Secured Assignment for two more UNU-WIDER papers

Jun 01, 2020 • Oil & Gas Industry

Etienne Romsom and Kathryn McPhail, authors of “The energy transition in Asia" series, have been assigned two more reports with UNU-WIDER.

Read More
EnergyCC publishes UNU-WIDER's Second Report on The energy transition in Asia

May 15, 2020 • Oil & Gas Industry

Etienne Romsom and Kathryn McPhail, authors of “The energy transition in Asia - Country priorities, fuel types, and energy decisions”, have published their second report with UNU-WIDER.

Read More
Interview of Sir Mark Moody-Stuart with Gulf Intelligence

May 06, 2020 • Oil & Gas Industry

Sir Mark Moody-Stuart, Chairman of EnergyCC, shares his personal views on the oil market, dividend cuts by the international oil majors, long-term cashflows from renewables, international relationships with China, vulnerabilities in alternative energy supply chains, the opportunity for hydrogen.

Read More