Speaking at the World Gas Conference in Paris this week, DNV's gas value chain global segment leader Martin Layfield said around 140 billion cubic metres of gas is flared off as a by-product of oil production every year, but DNV believes that its methodology, using gas flowrate and distance, can market to select the most appropriate technical solutions on a case-by-case basis.

The methodology could present new revenue opportunities, particularly for smaller-scale applications for operators, while helping them to reduce emissions and stay ahead of regulatory requirements.

DNV GL's methodology is informed by detailed case studies in four countries: Russia, the US, Algeria and Vietnam. Each geographical setting provides different technical, regulatory and economic challenges.

"It's a significant challenge to turn waste from flaring and venting into a profitable economic product with sound environmental benefits, however our research shows that there are economically viable solutions that can assist in carbon abatement and develop flare gas for societal use," Layfield said.

"Existing solutions are mature for large-scale applications, but most flaring is very small-scale.

"We need innovation in applying associated gas to energy intensive processes, such as air separation and water desalination.

"Though some solutions might be immature for near-term implementation, current applications such as micro LNG, compressed natural gas, natural gas hydrates and conversion methods can deliver significant benefits, and are proving to do so in some cases in certain markets like North America" he continued.

Flaring of gas contributes to climate change and releases toxic components that can harm the health and the well-being of local communities.

It also wastes a valuable energy resource that could be used to advance the sustainable development of producing countries.

Most flaring occurs at either ageing and/or remote installations.

However, without a global cost penalty for emitted carbon, there are few business incentives to capture the flared gas. Financial barriers can significantly impede the efforts to reduce emissions and this is particularly true for countries with developing economies.

Access to funding to develop projects and the implementation of technologies is a factor and it is hoped that the work conducted by DNV GL can help to demonstrate the economic scenarios which can instil confidence in the industry to achieve more.

Similarly, regulatory drivers are limited in many regions. However, the World Bank initiative to end routine gas flaring at oil production sites by 2030 is helping to drive industry momentum, with endorsement by ten countries, ten oil companies and seven development institutions.

"This research helps identify new value chains and revenue streams that can help meet the industry's demand for sustainable, cost-effective and reliable alternatives to gas flaring," DNV GL Oil and Gas CEO Elisabeth Torstad said.

"The objective is to support the industry in raising the standards of safer, smarter and greener performance. This will reduce carbon dioxide emissions and local pollution and ultimately improve the quality of life in local communities around oil and gas extraction."

Production flaring accounts for around than 40% of global gas flaring activities, and is a major source of greenhouse gas emissions.

About 500 billion cubic feet of natural gas per annum is flared as a means of disposing natural gas associated with oil fields around the world where there is no infrastructure built to take the gas to markets.

Around 300 million tonnes of carbon dioxide is vented into the atmosphere, an equivalent to emissions from 77 million cars.

If the amount of associated gas were used for power generation, it could provide more than 750 billion kilowatts of electricity, more than the electricity consumption capacity of the entire African continent.

The flare rate in the Middle East region records around enough to feed a 20Mt LNG plant, 100Bcf per annum, while Nigeria flares 50Bcf per annum, and is the second worst flaring nation behind Russia.

And the issue is getting worse in the developed world, with reports the US is flaring $100 million per month of unwanted gas associated with shale oil production from areas like the prolific Bakken Shale.