Oxy Joins Anti-flaring Initative
Occidental has joined the World Bank's 'Zero Routine Flaring by 2030' initiative, it said February 12, the first US oil and gas producer to do so. The aim is two-fold: make use of a valuable energy resource and, in the process, reduce emissions.
"It’s an honour to be the first US oil and gas company to endorse the World Bank’s initiative to reduce routine flaring globally, as we amplify our commitment to eliminate routine flaring in our operations by 2030," said CEO Vicki Hollub. "Support for this important World Bank program is part of our company’s broader commitment to reduce greenhouse gas emissions in our global operations and positions Occidental for success in a low-carbon economy."
Flaring in the US Permian basin, where Occidental is the largest producer, hit a high of 750mn ft³/d in Q3 last year, as oil production rose but gas pipeline capacity was scarce. There are hopes that new US LNG export capacity will mop up some of that gas; but with global prices so low, final investment decisions even on projects that depend on cheap Permian gas, such as Driftwood and Rio Grande, might slide further into the future.
The 2015 initiative brings together governments, oil companies and development institutions that have agreed to co-operate and eliminate routine gas flaring in their oil production operations by 2030. Saudi Aramco joined last November.