Energy & Environment

Research & Impact: Report Details Oil & Gas Industries’ Significant Achievements in Decreasing Flaring Intensity and Volume

By

The recently released annual report from The Environmental Partnership (TEP), a voluntary collective of oil and gas companies “committed to continuously improving the industry’s environmental performance,” details the serious progress the industry has made in emissions reductions, especially in reducing flare intensity.

TEP describes its mission as “to continuously improve the industry’s environmental performance by taking action, learning about best practices and technologies, and fostering collaboration to responsibly develop our nation’s essential oil and natural gas resources.” It’s 106 member companies represent nearly 65 percent of U.S. onshore oil and natural gas production and includes big names such as BP, Chevron Corporation, ConocoPhillips Company, ExxonMobil Corporation, Hess Corporation, and Shell.

According to the report, in 2024, TEP members’ flare intensity remained flat even as the number of sites included in the program grew by 16 percent. In 2023, TEP members achieved a 6.6 percent reduction in flare intensity and a 10 percent reduction in overall flare volumes from 2022, even with a 9 percent increase in oil production and a 4 percent increase in natural gas production.

“Flaring” in oil and gas development refers to the controlled burning of natural gas that cannot be processed or sold. This occurs at oil production sites where gas is extracted along with oil, but it is not economically viable to capture and transport that gas to market. Flaring produces carbon dioxide and smaller amounts of pollutants like methane and nitrogen oxides.

It is also a controlled way to dispose of gas that could otherwise pose safety risks. For instance, gas that accumulates and is not managed can become a fire hazard or create pressure issues in the reservoir.

“Flaring intensity” refers to the amount of gas being flared in relation to the volume of oil being produced, or to the overall level of production activity. It is a metric used to assess how much gas is being wasted through flaring and to gauge the efficiency and environmental impact of the flaring practices at a given site.

Overall, TEP members have reduced their flare volumes by 76 percent since 2019. Onshore methane emissions in the United States have dropped 37 percent from 2013 to 2022, according to data from the U.S. Environmental Protection Agency. Significant credit for that goes to the oil and gas industries for the innovations they have voluntarily undertaken to make drill sites as safe as possible, as well as the best practices they have implemented.

To cite one example, TEP members enhanced their leak-detection strategies to prevent emissions from occurring. “Detection technologies include laser absorption spectroscopy, optical gas imaging, and sensors,” the report notes. “While continuing to implement established ground-based monitoring approaches, many TEP members also are incorporating aerial-based monitoring approaches with drones and airplanes and space-based monitoring through satellites. Additionally, companies are identifying ways that operational information can be used to predict, prevent, and report emissions sources more accurately.”

These strategies have produced a reported leak occurrence rate of just 0.02 percent in 2024, or less than one component leaking in a thousand.

The oil and natural gas deposits found throughout the United States are abundant, affordable, and environmentally safe. Moreover, they can ensure the United States is the world’s largest energy producer well beyond the 21st century. Therefore, policymakers should refrain from placing unnecessary burdens on the natural gas and oil industries which, as this TEP report demonstrates, are committed to safe, environmentally responsible extraction and positively impact state economies.

Heartland Impact can send an expert to your state to testify or brief your caucus; host an event in your state; or send you further information on a topic. Please don’t hesitate to contact us if we can be of assistance! If you have any questions or comments, contact Cameron Sholty, at csholty@heartlandimpact.org or 312/377- 4000.

  • Tim Benson

    Tim Benson joined The Heartland Institute in 2015 as a policy analyst in the Government Relations Department. He is also the host of the Heartland Institute Podcast Ill Literacy: Books with Benson.