a

GAO

United States Government Accountability Office

Report to the Honorable Jeff Bingaman, 

Ranking Minority Member, Committee on 

Energy and Natural Resources, U.S. 

Senate

July 2004 NATURAL GAS 

FLARING AND 

VENTING

Opportunities to 

Improve Data and 

Reduce Emissions

GAO-04-809
www.gao.gov/cgi-bin/getrpt?GAO-04-809.

To view the full product, including the scope 

and methodology, click on the link above. 

For more information, contact Jim Wells at 

(202) 512-3841 or wellsj@gao.gov. 

Highlights of GAO-04-809, a report to the 

Honorable Jeff Bingaman, Ranking 

Minority Member, Committee on Energy 

and Natural Resources, U.S. Senate 

July 2004

NATURAL GAS FLARING AND VENTING

Opportunities to Improve Data and 

Reduce Emissions 

U.S. and global data on natural gas flaring and venting are limited. First, the 

Department of Energy’s Energy Information Administration (EIA) collects 

and reports data voluntarily provided by oil- and gas-producing states. 

Because EIA has no authority to require states to report, some do not, 

leading to incomplete data. Second, EIA has provided limited guidance to 

states to promote consistent reporting. As a result, only about one-fourth of 

the states reporting provide data that EIA considers consistent. Third, the 

data EIA collects do not distinguish between flared gas and vented gas—an 

important distinction since they have dramatically different environmental 

impacts. Data on flaring and venting outside the United States are also 

limited, since many countries report unreliable data or none at all. To 

improve data on flaring and venting, EIA could use its authority to collect 

data directly from oil and gas producers; to obtain more consistent data, EIA 

could improve its guidelines for reporting. From an environmental 

perspective, EIA, the Minerals Management Service, and the Bureau of Land 

Management could require flaring and venting data to be reported separately 

from each other. Globally, the federal government could set an example by 

continuing to improve U.S. data, continuing to support global efforts, and 

using U.S. satellite data to detect unreported flaring. 

On the basis of the limited data available, the amount of gas emitted through 

flaring and venting worldwide is small compared with global natural gas 

production and represents a small portion of greenhouse gas emissions. 

Nevertheless, flaring and venting have adverse environmental impacts and 

result in the loss of a significant amount of energy. Annually, over 100 billion 

cubic meters of gas are flared or vented worldwide—enough to meet the 

natural gas needs of France and Germany for a year. While flaring and 

venting do occur in the United States, less than 1 percent of global 

production is flared and vented. 

Opportunities exist in several areas to help reduce flaring and venting, both 

in the United States and globally. For example, exploring ways to address 

market barriers affecting associated gas could help identify approaches to 

reduce global flaring and venting. 

Worldwide Flaring Identified Using Satellite Technology 

Since 1995, the average price of 

natural gas in the United States has 

almost tripled as demand has 

grown faster than supply. Despite 

this increase, natural gas is 

regularly lost as it is burned 

(flared) and released into the 

atmosphere (vented) during the 

production of oil and gas. GAO was 

asked to (1) describe flaring and 

venting data and what the federal 

government could do to improve 

them; (2) report, on the basis of 

available information, on the extent 

of flaring and venting and their 

contributions to greenhouse gases; 

and (3) identify opportunities for 

the federal government to reduce 

flaring and venting. 

GAO recommends that the 

Secretary of Energy consider 

opportunities to improve data on 

flaring and venting. In addition, 

GAO recommends that the 

Secretary of the Interior consider 

regulatory changes for federal 

leases to reduce the most harmful 

emissions from flaring and venting 

and to improve oversight. 

 

In commenting on the report, the 

Department of Energy and the 

Department of the Interior 

generally agreed with our findings 

and recommendations. 
Page i GAO-04-809 Natural Gas Flaring and Venting

Contents

Letter 1

Results in Brief 5

Flaring and Venting Data Are Limited, but the Federal Government 

Has Opportunities to Improve Them 8

Although the Amount of Gas Flared and Vented Is Small, It 

Represents a Significant Amount of Lost Energy and Contributes 

to Global Greenhouse Gas Emissions 12

The Federal Government Could Take a Larger Role in Reducing 

Flaring and Venting 18

Conclusions 21

Recommendations for Executive Action 23

Agency Comments and Our Evaluation 23

Appendixes

Appendix I: Objectives, Scope, and Methodology 26

Appendix II: Comments from the Department of Energy 27

Appendix III: Comments from the Department of the Interior 29

Appendix IV: GAO Contacts and Staff Acknowledgments 30

GAO Contacts 30

Acknowledgments 30

Tables Table 1: Estimated Gas Flared and Vented by Selected Countries, 

2000 16

Table 2: Estimated U. S. Natural Gas Produced and Flared and 

Vented, 2002 17

Figures Figure 1: U. S. Natural Gas Prices, 1995-2003 1

Figure 2: Worldwide Flaring Identified Using Satellite Technology, 

2002 14

Figure 3: Regional Flaring and Venting As a Percentage World 

Flaring and Venting, 2000 16
Contents

Page ii GAO-04-809 Natural Gas Flaring and Venting

Abbreviations

BLM Bureau of Land Management

DOE Department of Energy

DOI Department of the Interior

EIA Energy Information Administration

EPA Environmental Protection Agency

FERC Federal Energy Regulatory Commission

GGFR Global Gas Flaring Reduction Partnership

IEA International Energy Agency

LNG Liquid Natural Gas

NOAA National Oceanic and Atmospheric Administration

mmBtu million British thermal units

MMS Mineral Management Service

USAID U.S. Agency for International Development

This is a work of the U.S. government and is not subject to copyright protection in the 

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permission from GAO. However, because this work may contain copyrighted images or 

other material, permission from the copyright holder may be necessary if you wish to 

reproduce this material separately.
Page 1 GAO-04-809 Natural Gas Flaring and Venting

United States Government Accountability Office

Washington, D.C. 20548

A

July 14, 2004 Letr

The Honorable Jeff Bingaman

Ranking Minority Member

Committee on Energy and Natural Resources

United States Senate

Dear Senator Bingaman:

Since 1995, the average price of natural gas in the United States has almost 

tripled as demand has grown faster than supply. Natural gas prices 

increased from $1.93 per million British thermal units (mmBtu) in 1995 to 

$5.15 per mmBtu in 2003—an average annual rate of increase of over 13 

percent (see fig. 1).1

Figure 1: U. S. Natural Gas Prices, 1995-2003

Note: Dollars are adjusted for inflation.

1

Henry Hub natural gas prices adjusted for inflation in 2002 dollars. Henry Hub is one of the 

largest natural gas market centers in the United States. Its price often serves as a 

benchmark for wholesale natural gas prices across the country.

0

1

2

3

4

5

6

7

1995 1996 1997 1998 1999 2000 2001 2002 2003

Natural gas in dollars per mmBtu

Source: GAO analysis of industry data.

Year
Page 2 GAO-04-809 Natural Gas Flaring and Venting

Despite this increase in its price, natural gas is regularly burned and 

released into the atmosphere during the production of oil and gas. While 

the exact amount of gas lost in this way is uncertain, given the vast extent 

of oil and gas production throughout the world, it could be significant. In 

addition to resulting in the loss of a potentially valuable resource, the 

burning and release of natural gas into the atmosphere contribute to 

greenhouse gas emissions, which are generally considered to be warming 

the earth’s atmosphere. 

Although most natural gas production involves extracting gas from wells 

drilled into underground gas reservoirs, some natural gas is generated as a 

by-product of oil production. Gas produced during oil production is called 

associated gas. During oil and gas production, it may be necessary to burn 

or release natural gas for a number of operational reasons, including 

lowering the pressure to ensure safety. Burning natural gas is known as 

flaring, while releasing natural gas directly into the atmosphere is called 

venting. In addition to the operational reasons for flaring and venting, in 

areas where the primary purpose of drilling is to produce oil, producers 

flare or vent associated natural gas because no local market exists for the 

gas and transporting it to a market may not be economically feasible.2

Natural gas prices are a major determinant of whether associated gas is 

flared and vented or sold. Associated natural gas would be sold if prices 

were high enough over a long enough period to justify building the 

infrastructure—pipelines and ports—to transport the gas to a market. In 

the United States, there are well-developed natural gas markets and 

infrastructure to reduce the flaring and venting of associated natural gas. 

However, in parts of the world like Africa and the Middle East, where the 

natural gas market and infrastructure for transporting gas are not as welldeveloped, flaring and venting are generally more prevalent. With increases 

in natural gas prices, some countries have recognized the potential of 

increasing exports to high-demand countries like the United States using 

liquefied natural gas (LNG) technology. These countries liquefy the natural 

gas and transport it in specially designed tanker ships to the United States 

and other countries. When the liquefied gas arrives at an import facility, the 

liquid is returned to a gaseous state and transported to a market. 

2

Natural gas may sometimes be reinjected into the ground for possible future use as an 

alternative to flaring or venting. Reinjection can be more costly than flaring and venting, but 

in some cases it may enhance oil recovery by increasing pressure in the reservoir.
Page 3 GAO-04-809 Natural Gas Flaring and Venting

Although gas is sometimes flared or vented because it has too little 

economic value to justify its capture, flaring or venting this gas into the 

atmosphere has an environmental cost. In general, flaring emits carbon 

dioxide, while venting releases methane.3

 These and other chemical 

compounds found in the earth’s atmosphere create a greenhouse effect. 

Under normal conditions, when sunlight strikes the earth’s surface, some of 

it is reflected back towards space as infrared radiation or heat. Greenhouse 

gases such as carbon dioxide and methane impede this reflection by 

trapping heat in the atmosphere. Methane is 23 times more potent than 

carbon dioxide in its ability to warm the atmosphere. While these gases 

occur naturally on earth and are emitted into the atmosphere, the 

expanded industrialization of the world over the last 150 years has 

increased the amount of emissions from human activity (known as 

anthropogenic emissions) beyond the level that the earth’s natural 

processes can handle. Scientists generally agree that these increased 

greenhouse gases are contributing to global warming, which can have 

detrimental effects on the climate. In general, the environmental costs of 

flaring and venting are not borne by the responsible parties because there 

are no restrictions on greenhouse gas emissions. However, nations have 

proposed international agreements to limit greenhouse gas emissions, 

including those released during flaring and venting. 

Numerous federal agencies have a role in oil and gas production and its 

emissions’ impact on the environment. The Department of Energy’s (DOE) 

Energy Information Administration (EIA) is the federal agency responsible 

for providing energy information to meet the needs of the public, the 

federal government, industry, and the Congress for making policy, fostering 

efficient markets, and improving public understanding. DOE has also 

provided funding support to a World Bank public-private partnership to 

reduce global gas flaring. The Environmental Protection Agency (EPA) has 

responsibility for monitoring and reporting on a wide range of 

environmental issues, including greenhouse gases such as carbon dioxide 

and methane. The Department of the Interior’s Minerals Management 

Service (MMS) and Bureau of Land Management (BLM) have responsibility 

for regulation and oversight of oil and gas leases for offshore federal 

properties and onshore federal lands, respectively. In general, flaring and 

3

Besides carbon dioxide, flaring natural gas may emit small amounts of methane and trace 

amounts of other gases depending on the flare’s burn efficiency. Venting methane may also 

release other hydrocarbons depending on the composition of the gas stream. In addition, 

due to the composition of the gas--for example when gas contains hydrogen sulfide--flaring 

may be required to control any associated air quality or human health impacts. 
Page 4 GAO-04-809 Natural Gas Flaring and Venting

venting are not authorized on these properties except for standard 

operational reasons. In addition, both agencies require producers to report 

combined flaring and venting data for federal leases. The Federal Energy 

Regulatory Commission (FERC) has responsibility for determining public 

convenience and necessity for interstate transmission of natural gas 

through pipelines as well as for permitting onshore liquefied natural gas 

facilities. In addition, the U.S. Coast Guard plays a role in the LNG offshore 

permitting process. The U.S. Agency for International Development 

(USAID) supports various projects around the world, including energy 

projects, in partnership with other countries. The National Oceanic and 

Atmospheric Administration (NOAA), under the Department of Commerce, 

uses U.S. satellite technology to, among other things, monitor gas flaring 

activity around the world.

Regarding natural gas flaring and venting from oil and gas production, in 

both the United States and the rest of the world, you asked us to (1) 

describe the data collected and reported on natural gas flaring and venting 

and what the federal government could do to improve it; (2) report, on the 

basis of available information, on the extent of flaring and venting and its 

contribution to greenhouse gases; and (3) identify opportunities for the 

federal government to reduce such flaring and venting.

To do this work, we obtained currently available data on natural gas 

production and estimates of flaring and venting in the United States from 

EIA, MMS, and BLM. We obtained international data from Cedigaz, a 

French oil and gas industry association that gathers worldwide information 

on natural gas; the World Bank; the International Energy Agency, an 

intergovernmental energy policy body; and the United Nations. We 

determined that all the data we reviewed were sufficiently reliable for 

inclusion in this report after acknowledging the limitations of these data. 

We also interviewed officials from EIA, EPA, MMS, BLM, NOAA, USAID, 

the World Bank, the United Nations, various private corporations and 

organizations, and state governments regarding data collection and 

methodologies, quality of the data collected, and reporting practices. In 

addition, we contacted natural gas-producing states to determine their 

assessment of the reliability of data they collect and report. We also 

attended the World Bank Global Gas Flaring Reduction Partnership’s 

Second International Gas Flaring Reduction Conference in May 2004 in 

Algeria with delegates from numerous other countries concerned about gas 

flaring and venting. We conducted our work from October 2003 through 

June 2004 in accordance with generally accepted government auditing 
Page 5 GAO-04-809 Natural Gas Flaring and Venting

standards. A detailed description of our objectives, scope, and 

methodology is contained in appendix I. 

Results in Brief Overall, data collected and reported on the flaring and venting of natural 

gas associated with oil and gas production are limited in several ways. 

First, although the Department of Energy’s EIA has authority to require 

U.S. oil- and gas-producing companies to report flaring and venting data, 

according to EIA officials, the agency has not used this authority because it 

considers these data a relatively low priority. Instead, EIA collects and 

publishes data provided voluntarily by the states on the amount of natural 

gas flared and vented. Because EIA has no authority to require states to 

report—and some do not—EIA data are incomplete and must be estimated 

by EIA. Compounding this problem, EIA has provided only limited 

guidance to states to promote consistency in the information that they 

voluntarily submit. As a result, only 8 of the 32 oil- and gas-producing states 

that EIA reports on provide data that EIA considers consistent, leaving the 

agency to estimate the amount of flaring and venting in the other 24 states. 

Finally, the information available to EIA does not distinguish between gas 

that is flared and gas that is vented, an important distinction from an 

environmental perspective because the methane emitted during venting is 

significantly more potent in its ability to warm the atmosphere than the 

carbon dioxide emitted during flaring. 

Outside the United States, information on gas flared and vented is even 

more limited. Generally, international reporting is also voluntary. Moreover, 

there is no single organization responsible for collecting and reporting 

data. The United Nations requests data as part of its work on climate 

change, but few countries report meaningful data. EIA reports worldwide 

as well as U.S. data, but it largely relies on estimates developed by an oil 

and gas industry association that gathers information self-reported by 

countries. In some cases, countries do not report the information or report 

suspect numbers. For example, Russia reports no flaring, even though 

satellite data analyzed by the National Oceanic and Atmospheric 

Administration have confirmed significant flaring activity. Also, as with the 

U.S. data, the global data do not distinguish between the amounts flared 

and vented. More accurate data would provide a clearer understanding of 

the extent and location of the problem, as well as a basis for targeted 

actions designed to both prevent the loss of a potentially valuable resource 

and reduce harmful emissions into the atmosphere.
Page 6 GAO-04-809 Natural Gas Flaring and Venting

The federal government could consider a number of opportunities to 

improve information on flaring and venting activity, if it deems better data 

is a worthwhile priority. EIA could improve its guidelines to states for 

collecting and reporting flaring and venting data, which could provide EIA 

with more consistent data. EIA could also consider collecting data on 

flaring and venting directly from the roughly 20,000 domestic oil and gas 

producers. In addition, from an environmental perspective, EIA, MMS, and 

BLM could require oil and gas producers to distinguish between the 

amount of gas flared and the amount vented. On a worldwide basis, the 

government could set an example for the world by continuing to improve 

U.S. data. In addition, EIA could work with NOAA to assess the feasibility 

of using U.S. satellite technology to quantify the volumes of gas flaring 

around the world and identify the additional resource commitment 

necessary to obtain the information each year. Finally, the federal 

government could continue to support global efforts such as the World 

Bank’s Global Gas Flaring Reduction Partnership (GGFR), which, in part, 

seeks to develop better standards for data.

On the basis of the limited data available, the amount of gas emitted 

through flaring and venting is small compared with overall natural gas 

production and represents a small portion of greenhouse gas emissions. 

Nevertheless, flaring and venting do have adverse environmental impacts 

and result in the loss of a significant amount of energy. The amount of gas 

flared and vented annually is conservatively estimated by the World Bank 

at over 100 billion cubic meters worldwide, or about 3 percent of all gas 

marketed in the world. While this amount is small in comparison with 

worldwide totals, it is enough gas to meet the natural gas needs of both 

France and Germany for a year. Flaring and venting are concentrated in 

certain parts of the world. According to the World Bank, eight nations 

account for 60 percent of the estimated natural gas flared and vented: 

Algeria, Angola, Indonesia, Iran, Mexico, Nigeria, Russia, and Venezuela. 

Some countries flare and vent most of the associated natural gas they 

produce. In contrast, EIA estimates that the United States flares or vents 

about 0.4 percent of its production, representing only 3 percent of the 

world’s total amount of natural gas flared and vented. Within the United 

States, most of the reported flaring and venting has occurred in the active 

oil and gas production states of Alaska, Louisiana, Texas, and Wyoming and 

in the Gulf of Mexico. Regarding worldwide greenhouse gas emissions, 

flaring and venting is estimated to contribute, respectively, about 4 percent 

of the total methane emissions and about 1 percent of the total carbon 

dioxide emissions caused by human activity. Several countries have taken 

steps to reduce flaring and venting emissions that have the potential of 
Page 7 GAO-04-809 Natural Gas Flaring and Venting

saving energy resources while reducing greenhouse gases. For example, 

some countries have imposed requirements on oil and gas producers to 

eliminate emissions of gas within the next few years.

The federal government has opportunities in several areas to help reduce 

natural gas flaring and venting. First, to address flaring and venting in the 

United States, MMS and BLM could consider regulatory changes that would 

reduce the most harmful emissions associated with flaring and venting and 

improve oversight of oil and gas production on federal lands and offshore 

areas leased to producers. Specifically, from an environmental perspective, 

it may be worth exploring the cost and benefit of requiring producers to 

flare rather than vent when they must release gas for standard operational 

purposes—for example, for safety reasons—since flaring is less 

detrimental to the atmosphere. In addition, while the identification of 

unauthorized flaring or venting is not commonplace on federal lands and 

offshore areas leased by oil and gas companies, unauthorized flaring and 

venting do occur. For example, a major oil and gas producer recently paid a 

$49 million settlement for unauthorized flaring and venting that went 

undetected for several years. Requiring the use of meters to measure gas 

flared and vented could improve oversight. Second, the federal government 

could promote programs that identify, and help industry implement, best 

practices for reducing natural gas emissions. For example, EPA sponsors 

the Natural Gas STAR program, which, among other things, identifies ways 

to reduce the need to flare and vent during oil and gas production 

operations. On a global basis, the U.S. government could investigate market 

barriers and the public’s perceptions of the risks associated with new 

infrastructure, such as those related to building LNG facilities, which could 

affect relevant markets. For example, the permit approval process for 

building an LNG facility in the United States can currently take more than a 

year. Finally, the federal government could continue to work with other 

countries and international corporations to reduce flaring and venting. 

We are making recommendations to the Secretary of Energy to consider 

the opportunities to improve data on flaring and venting. We are also 

making recommendations to the Secretary of the Interior to consider 

regulatory changes to reduce the most harmful emissions from flaring and 

venting and to improve oversight for federal leases.
Page 8 GAO-04-809 Natural Gas Flaring and Venting

Flaring and Venting 

Data Are Limited, but 

the Federal 

Government Has 

Opportunities to 

Improve Them

In the United States, DOE’s EIA collects and reports data provided 

voluntarily by the states on the amount of natural gas flared and vented, but 

the data are incomplete, inconsistent, and not as useful as they could be 

from an environmental perspective. Information on gas flared and vented 

outside the United States is also limited, since international reporting 

generally is voluntary and there is no single organization that is responsible 

for collecting and reporting this data. EIA could improve flaring and 

venting data by enhancing its guidance to states and collecting data directly 

from oil and gas producers; EIA, MMS, and BLM could also improve data by 

collecting and reporting data on venting separately from data on flaring. By 

taking these actions, the federal government could serve as a model for 

global data collection and reporting. EIA could also investigate 

improvements in global data collection and reporting by using satellite 

images and data to better estimate the volume of natural gas flared in other 

countries and by continuing to support international efforts to improve 

data. 

Data Collected and 

Reported on Flaring and 

Venting Are Limited

In the United States, data collected and reported on the flaring and venting 

of natural gas associated with oil and gas production are incomplete, 

inconsistent, and not as useful as they could be from an environmental 

perspective. Regarding the completeness of the data, although MMS and 

BLM require companies that lease federal lands and offshore areas for oil 

and gas production to report flaring and venting statistics, EIA does not use 

its authority to require information on flaring and venting from all other 

U.S. oil- and gas-producing companies. According to EIA officials, the data 

on flaring and venting that EIA collects as part of overall oil and gas 

production data represent a relatively small portion of EIA’s energy data 

reporting program. Since the agency has limited resources, these data are a 

relatively low priority. As a result, rather than requiring that the estimated 

20,000 domestic oil- and gas-producing companies provide flaring and 

venting data—which would consume considerable resources—EIA collects 

this information from the oil- and gas-producing states on a voluntary basis. 

Many states do not provide this information, however, and EIA has no 

authority to require them to do so. Consequently, EIA’s flaring and venting 

information is incomplete. 

In addition to being incomplete, the data the states provide to EIA are also 

inconsistent. Since flaring and venting data are not a high priority for EIA, 

the agency has provided only limited guidelines to states to promote 

consistency in the information that they voluntarily submit. As a result, 
Page 9 GAO-04-809 Natural Gas Flaring and Venting

only 8 of the 32 oil- and gas-producing states4 provide data that EIA 

considers consistent, leaving EIA to estimate the amount of flaring and 

venting in the other 24 states. When we asked state officials about EIA 

guidelines for reporting, officials from 15 states said they were unsure what 

information EIA wanted and how EIA wanted it presented. Most officials 

from the states answering our questions about the guidelines thought they 

needed improvement, and some officials said they would like to participate 

in developing improved guidelines to ensure that the states would be able 

to meet EIA’s requests. 

The data that EIA, MMS, and BLM collect are further limited because they 

do not distinguish between gas that is flared and gas that is vented. As a 

result, from an environmental perspective, the information is not as useful 

as it could be. EIA, MMS, and BLM do not collect separate flaring and 

venting data because their focus is on the amount of gas produced for the 

market and not on the gas that is lost through flaring and venting. EPA, on 

the other hand, considers flared and vented gas in the context of the 

damage it could inflict on the environment: vented gas emissions 

(methane), and to a lesser extent flared gas emissions (carbon dioxide), 

contribute to total greenhouse gases. According to EPA officials, 

differentiating data on flaring and venting could improve EPA estimates of 

each gas’s contribution to total greenhouse gases in the atmosphere. 

Because EPA does not collect its own flaring and venting data, however, it 

must rely on the combined data that these other agencies collect.

EIA believes that the data the states voluntarily provide on production—

from which the data on flaring and venting are taken—could be improved 

as well. In particular, because some states do not report information at all, 

EIA is considering using its authority to collect information on production 

directly from natural gas well operators. Toward that end, EIA has 

published for comment a proposed sample survey of monthly natural gas 

production in the Federal Register. If the survey were implemented, well 

operators would be required to provide EIA with production data and the 

form would include a category for flaring and venting data.5

 Among other 

things, EIA has sought comments from well operators as to whether they 

can provide reliable measures of gas flared and vented. However, even if 

4

EIA does not report information for a 33rd state, Missouri, which produces a small amount 

of oil and gas.

5

69 Fed. Reg. 22109 (Apr. 23, 2004).
Page 10 GAO-04-809 Natural Gas Flaring and Venting

the proposed sample form is implemented and, as proposed, collects 

information on flared and vented data, the focus will be on improving 

production data and not on flaring and venting data.

Outside the United States, information on gas flared and vented is even 

more limited. Generally, international reporting is also voluntary, and no 

single organization is responsible for collecting and reporting flaring and 

venting data. Although several organizations collect data voluntarily 

provided by countries with which they have a working relationship, the 

numbers countries report are sometimes questionable. For example, the 

United Nations requests data as part of its work on climate change, but few 

countries report meaningful data. In addition to U.S. data, EIA also reports 

worldwide information largely based on estimates developed by Cedigaz, 

an oil and gas industry association that gathers what is generally 

recognized as the best flaring and venting information available. A Cedigaz 

official told us that they rely on submissions from countries and companies 

around the world to make their estimates and that they accept the 

information the countries report unless Cedigaz has knowledge of a 

country’s operations that could be used to improve the accuracy of the 

amounts reported. For example, on the basis of submissions by Russia and 

China—two important petroleum-producing countries—Cedigaz has 

reported that these countries do not flare or vent. World Bank officials told 

us, however, it is generally known that Russia regularly flares and vents 

gas. Satellite images created by NOAA have confirmed that Russia does, in 

fact, participate in flaring. In addition, as in the United States, the global 

data are limited from an environmental perspective because they do not 

distinguish between the amounts flared and the amounts vented. More 

accurate worldwide data would provide a clearer understanding of both the 

extent to which flaring and venting emissions contribute to total 

greenhouse gases and the countries that do the most flaring and venting. 

This would provide a basis for targeting actions designed to prevent the 

waste of a potentially valuable resource while at the same time reducing 

harmful emissions into the atmosphere.

The Federal Government 

Has Several Opportunities 

to Improve the Information 

on Flaring and Venting

Federal agencies have a number of opportunities available to them to 

improve the information on flaring and venting. EIA could clarify its 

guidelines to states for collecting and reporting flaring and venting data. 

Currently, EIA assumes that about 75 percent of the reports it receives from 

oil- and gas-producing states contain inconsistent data. State officials 

believe that they could better meet EIA’s data needs—that is, provide EIA 

with more consistent data—if they had more comprehensive guidance from 
Page 11 GAO-04-809 Natural Gas Flaring and Venting

EIA on the data it wants and how to report them. Similarly, as the reporting 

of greenhouse gas emissions has become more widespread globally, the oil 

and gas industry has begun to recognize the need for guidance on how 

emissions, such as carbon dioxide and methane, should be collected and 

reported. In December 2003, three petroleum industry associations jointly 

issued a report, “Petroleum Industry Guidelines for Reporting Greenhouse 

Gas Emissions,” to promote consistency in collecting and reporting 

petroleum industry greenhouse gas emissions. EIA could consider using 

these guidelines while working with industry and state officials to improve 

their state guidelines for reporting emissions from flaring and venting of 

natural gas.

Another opportunity for improving the data is for EIA to consider using its 

general energy information collecting authority6

 to collect data on flaring 

and venting directly from the oil and gas producers, rather than relying on 

voluntary submissions by states. (Producers with federal leases are already 

required to collect and report this information to MMS and BLM.) While 

EIA considers these data a relatively low priority, and while collecting data 

from all 20,000 domestic producers could involve extensive resources, 

there may be efficient and cost-effective methods of collecting sample data. 

In addition, from an environmental perspective, the federal government 

could broaden the usefulness of flaring and venting information by 

distinguishing between the amounts of gas flared and the amounts vented. 

Since natural gas that is vented has a more significant effect on the 

atmosphere than natural gas that is flared, reporting these emissions 

separately could enable EPA to better estimate methane’s and carbon 

dioxide’s contributions to greenhouse gases. 

Finally, on a worldwide basis, the federal government could improve flaring 

and venting data in several ways. First, the U.S. government could continue 

to improve its own data, thereby providing an example for other countries. 

Second, EIA, working with NOAA, could investigate the feasibility of 

supplementing the data already available by using U.S. satellite images. For 

example, figure 2 (see p. 14) shows worldwide flaring identified in 2002 

using satellite technology. According to a NOAA physical scientist, 

analyzing these satellite data could validate the amount of flaring reported 

by countries. For example, some countries, like Russia, report no flaring, 

while satellite images show substantial flaring is actually occurring. Third, 

the federal government could continue to support efforts such as the World 

6

15 U.S.C. § 772(b).
Page 12 GAO-04-809 Natural Gas Flaring and Venting

Bank Global Gas Flaring Reduction Partnership (GGFR)7 that, in part, 

seeks to develop guidance for data collection and reporting. According to a 

2004 GGFR report, such guidance could improve natural gas flaring and 

venting data. 

Although the Amount 

of Gas Flared and 

Vented Is Small, It 

Represents a 

Significant Amount of 

Lost Energy and 

Contributes to Global 

Greenhouse Gas 

Emissions

According to the limited data available, the amount of natural gas emitted 

through flaring and venting is small compared with overall natural gas 

production, but these emissions represent a significant amount of lost 

energy. Flaring and venting are concentrated in several parts of the world 

and, in the United States, in four states and the Gulf of Mexico. Although 

worldwide estimates of flaring and venting constitute a small portion of 

total greenhouse gas emissions, many countries have undertaken efforts to 

reduce flaring and venting.

Three Percent of the World 

Production of Natural Gas Is 

Flared or Vented, Which 

Represents a Significant 

Amount of Unused 

Resources

While flaring and venting represent only 3 percent of the total natural gas 

production, the natural gas flared and vented—about 100 billion cubic 

meters a year—is enough to meet the annual natural gas consumption of 

both France and Germany. In general, the amount of flaring and venting 

emissions is related to the amount of oil produced: the higher the 

production, the more gas flared and vented. Since 1990, the quantity of oil 

produced has increased, but because of various global reduction initiatives, 

the quantity of natural gas flared and vented has remained constant. 

Consequently, natural gas emissions as a percentage of oil production have 

decreased.

7

GGFR is a public-private partnership that in May 2004 included BP, ChevronTexaco, ENI, 

ExxonMobil, NorskHydro, Royal Dutch Shell, SNH, Statoil, TOTAL, and Sonatrach; and the 

governments of Angola, Canada, Chad, Ecuador, Equatorial Guinea, Indonesia, Nigeria, 

Norway, and the United States.
Page 13 GAO-04-809 Natural Gas Flaring and Venting

[This page is left blank intentionally.]
Page 14 GAO-04-809 Natural Gas Flaring and Venting

Figure 2: Worldwide Flaring Identified Using Satellite Technology, 2002
Page 15 GAO-04-809 Natural Gas Flaring and Venting

Flaring and venting of natural gas are concentrated in certain parts of the 

world, with Africa, the Middle East, and the former Soviet Union 

contributing about two-thirds of the global emissions from flaring and 

venting (see fig. 3).

Source: National Oceanic and Atmospheric Administration.
Page 16 GAO-04-809 Natural Gas Flaring and Venting

Figure 3: Regional Flaring and Venting As a Percentage World Flaring and Venting, 

2000

Working with available data, the World Bank has estimated that three 

countries—Nigeria (16%), Russia (11%), and Iran (10%)—are responsible 

for over one-third of global flaring and venting (see table 1). 

Table 1: Estimated Gas Flared and Vented by Selected Countries, 2000 

Country Flared gas(bcm)a Percentage of world total (%)b

Algeria 6.8 6.0

Angola 4.3 4.0

China 3.2 3.0

Egypt 0.9 1.0

Indonesia 4.5 4.0

Iran 10.5 10.0

Mexico 5.6 5.0

Nigeria 17.2 16.0

North Seac 2.7 3.0

11%

34%

18% 15%

10%

9%

Middle East

Former Soviet Union

Asia-Oceania

Central and South America

3%

Europe

Africa

North America

Source: The World Bank.
Page 17 GAO-04-809 Natural Gas Flaring and Venting

Source: The World Bank—which included data from Cedigaz, EIA, OPEC, IEA, World Bank, and IHS Energy Group.

Note:

a

Billion cubic meters.

b

Percentages are rounded.

c

North Sea includes only Denmark, Norway, and the United Kingdom, since Germany and the 

Netherlands did not flare in 2000, according to Cedigaz.

According to World Bank estimates, in 2000 eight nations accounted for 

60 percent of the natural gas flared and vented: Algeria, Angola, Indonesia, 

Iran, Mexico, Nigeria, Russia, and Venezuela. In addition, some countries—

for example, Angola and Cameroon—flare and vent most of the natural gas 

they produce. In contrast, EIA estimates that the United States flares or 

vents about 0.4 percent of its production annually. Within the United States, 

most of reported flaring and venting has occurred in the active oil and gas 

production states and in the Gulf of Mexico (see table 2). 

Table 2: Estimated U. S. Natural Gas Produced and Flared and Vented, 2002

Source: EIA.

Note: EIA reported totals may not equal sum of components due to independent rounding.

Russia 11.5 11.0

United States 2.8 3.0

Venezuela 4.5 4.0

Other Countries 33.0 30.0

Total 107.5 100.0%

In millions of cubic feet

State

Gas 

derived 

from gas 

wells

Associated 

gas from oil 

production

Total gas 

produced

Gas flared 

and 

vented

Flared and 

vented gas as 

percentage of 

total gas 

produced

Alaska 194,198 3,283,239 3,477,437 7,312 0.21%

Louisiana 1,282,137 100,324 1,382,461 10,957 0.79

Texas 4,828,188 832,816 5,661,004 27,379 0.48

Wyoming 1,572,728 174,748 1,747,476 12,356 0.71

Gulf of Mexico 3,850,708 858,332 4,709,040 20,092 0.43

All other 

states 5,999,921 999,945 6,999,866 21,077 0.30

Total 17,727,880 6,248,404 23,977,284 99,173 0.41%

(Continued From Previous Page)

Country Flared gas(bcm)a Percentage of world total (%)b
Page 18 GAO-04-809 Natural Gas Flaring and Venting

Four states—Alaska, Louisiana, Texas, and Wyoming—plus the federal 

leases in the Gulf of Mexico account for almost 80 percent of all reported 

U.S. flaring and venting. None of these states flare and vent more than 0.8 

percent of their total natural gas production.

Natural Gas Flaring and 

Venting Emissions 

Contribute a Small 

Percentage of Global 

Greenhouse Gas Emissions, 

and Countries Have 

Undertaken Initiatives to 

Reduce These Emissions

Worldwide flaring and venting is estimated to contribute, respectively, 

about 4 percent of the total methane and about 1 percent of the total 

carbon dioxide emissions caused by human activity. Despite these small 

contributions, several countries have undertaken efforts to reduce flaring 

and venting emissions that have the potential to reduce greenhouse gases 

while saving an energy resource. Specifically, many countries have 

imposed requirements on oil and gas producers to eliminate emissions of 

gas within the next few years. For example, Norway no longer allows the 

burning of petroleum in excess of the quantity needed for normal 

operational safety without the approval of the Ministry of Petroleum and 

Energy, and in 2003 Canada reported having achieved, through monitoring 

and regulation, a 70 percent reduction in flaring and venting emissions. In 

addition, corporations in several countries, in order to market their 

associated natural gas, either have constructed or are planning LNG plants 

to liquefy the gas for export or have developed on-site and local uses for the 

gas. For example, corporations operating in Nigeria currently have six LNG 

projects in development and have also begun using gas that otherwise 

would have been flared or vented to operate the platform equipment as 

well as to produce cement and fertilizer and gas that is usable as fuel for 

automobiles. Finally, some countries are exploring the potential of 

reinjecting carbon dioxide into wells instead of emitting it into the 

atmosphere. According to an oil company official, carbon dioxide 

reinjection in Algeria has prevented over one million tons of emissions—

the equivalent of taking 200,000 cars off the road. 

The Federal 

Government Could 

Take a Larger Role in 

Reducing Flaring and 

Venting

The federal government has opportunities in several areas to help reduce 

flaring and venting both within the United States and globally. First, in the 

United States, on federal lands and offshore areas leased to producers, the 

federal government could consider regulatory changes to reduce the most 

harmful emissions resulting from venting and improve oversight of oil and 

gas production. Second, the federal government could promote programs 

that identify, and help industry implement, best practices for reducing 

natural gas emissions. On a global basis, exploring ways to address market 
Page 19 GAO-04-809 Natural Gas Flaring and Venting

barriers affecting associated natural gas, and continuing to work with other 

countries, could help reduce flaring and venting.

Improving Federal 

Regulation and Oversight 

Could Reduce Flaring and 

Venting on Federal Lands

The government has an opportunity to help reduce flaring and venting in 

the United States by considering regulatory changes and improving 

oversight of oil and gas production on federal lands and offshore areas 

leased to producers. If MMS and BLM required producers to flare gas 

(rather than allowing them to vent gas) when emitting the gas for 

operational purposes, the emissions impact on the atmosphere could be 

reduced. Since the impact of methane (venting) on the earth’s atmosphere 

is about 23 times greater than that of carbon dioxide (flaring), a small 

change in the ratio of flaring to venting could cause a disproportionate 

change in the impact of emissions. For example, if 90 percent of the 

associated gas volume was flared and 10 percent was vented, the amount 

vented would have more than twice the effect on the atmosphere as the 

amount flared. 

In addition, although MMS and BLM require federal lessees to self-report 

estimated flaring and venting volumes, the agencies could require the use 

of flare and vent meters at production facilities, which could improve 

oversight by detecting how much gas is actually flared and vented. 

Currently, such meters are used by some oil- and gas-producing companies. 

The meters are placed in or adjacent to the stream of flared or vented gas to 

measure the volume emitted. While the identification of unauthorized 

flaring or venting is not commonplace on federal lands and offshore leases 

in the United States, unauthorized flaring and venting do occur. A major oil 

and gas producer recently paid a $49 million settlement in response to 

charges of unauthorized flaring and venting in the Gulf of Mexico that went 

undetected for several years. The lawsuit alleged that the company both 

improperly flared and vented gas under various offshore federal leases and 

failed to properly report the flared and vented gas. Improved oversight 

could help prevent similar problems in the future. The International Energy 

Agency has recommended such meters for accurately monitoring 

emissions from production facilities, and some producers that we 

interviewed said they already use these meters on many of their offshore 

production facilities. According to these producers, flare and vent meters 

are fairly inexpensive if installed when the facility is initially built, but
Page 20 GAO-04-809 Natural Gas Flaring and Venting

retrofitting facilities that are already producing may not be cost effective.8

To improve oversight, MMS and BLM, working with producers, could 

consider the cost and benefit of requiring the installation of these meters, 

particularly at new, major production facilities. 

Promoting Best Practices 

Could Reduce Emissions 

Caused by Flaring and 

Venting

The federal government could also help reduce flaring and venting by 

continuing to support programs that identify, and help industry implement, 

best practices for reducing natural gas emissions. EPA has sponsored the 

Natural Gas STAR program, which identifies and promotes the 

implementation of cost-effective technologies and practices that reduce 

methane emissions. About 65 percent of the U.S. natural gas industry is 

represented in this program. From 1993 through January 2004, according to 

EPA officials the STAR program identified over 100 best practices and 

technologies that reduce methane emissions from the oil and natural gas 

industry. In addition, STAR participants have reported total emissions 

reductions of more than 275 billion cubic feet worth over $825 million—

which EPA estimates is enough natural gas to heat more than 4 million 

homes for 1 year or is comparable to the removal of the emissions of 24 

million cars from the nation’s highways for 1 year. The two largest sources 

of overall oil and gas emissions identified by the STAR program are 

pneumatic devices and compressors. According to EPA officials, the STAR 

Program has identified 15 practices and technologies that would reduce 

methane emissions from these sources. 

Investigating Market 

Barriers Affecting 

Associated Gas and 

Continuing to Work with 

Other Countries Could Help 

Reduce Global Flaring and 

Venting

The government could also have an effect on flaring and venting worldwide 

by (1) addressing market barriers affecting gas produced outside the 

United States that would otherwise be flared or vented and (2) continuing 

to work with other countries. First, the government could identify 

regulatory barriers to economically feasible infrastructure development, 

such as building pipelines or LNG facilities for transporting gas that is 

usually flared or vented. For example, currently, four LNG import facilities 

exist in the United States—three on the East Coast and one on the Gulf of 

Mexico coast—but more than 15 federal permit applications are awaiting 

approval (from either FERC or the Coast Guard), which can take more than 

8

For example, industry officials told us that some of the older platforms have limited space, 

so to add meters would require additional construction, which could be cost prohibitive.
Page 21 GAO-04-809 Natural Gas Flaring and Venting

a year.9 In addition, the government could investigate the public’s 

perceptions of the risk associated with new infrastructure. For example, 

some communities have resisted LNG facilities because they are worried 

about the safety and security procedures in place to protect them from an 

accidental explosion or a terrorist attack. Finally, the federal government 

could continue to work with other countries and corporations to reduce 

flaring and venting. For example, USAID provided much of the funding for 

training regulators in Kazakhstan, where improved regulation has virtually 

eliminated the routine flaring of natural gas. In addition, the United States 

could continue to support the work of the World Bank’s Global Gas Flaring 

Reduction Partnership (GGFR), which recently issued standards on how to 

achieve reductions in the flaring and venting of gas worldwide.10

Conclusions By itself, the reduction of natural gas flaring and venting will not solve the 

problem of meeting increasing natural gas demands or eliminate all 

greenhouse gas emissions; however, it would be a helpful step in that 

direction. Although the emissions from flaring and venting are small in 

comparison with those from other sources, such as fossil fuel combustion, 

reducing flaring and venting from oil and gas production would help 

eliminate harmful emissions and possibly preserve an energy resource that 

is currently being lost. 

Although the role of the federal government in reducing flaring and venting 

of natural gas during oil and gas production may be limited, especially at 

the international level, opportunities exist for the government to make 

worthwhile contributions in this area. Given the immense challenges the 

government faces in the energy and environmental arenas and the limited 

resources available, however, any actions to reduce flaring and venting will 

have to be based on careful consideration of the potential costs and 

benefits of such actions. Moreover, since flaring and venting are not viewed 

as major problems in this country, it may be difficult to justify devoting 

much attention to them. Nonetheless, the government could consider 

9

Three additional facilities were recently approved but have not yet been built. Eleven other 

projects are in various planning stages. According to DOE officials, streamlined approval 

procedures require offshore deepwater port terminals to be processed in less than a year by 

the U.S. Coast Guard and onshore facility permitting is being streamlined by FERC through 

pre-filing consultations with project proponents to minimize approval time.

10A Voluntary Standard for Global Gas Flaring and Venting Reduction (World Bank: May 

2004).
Page 22 GAO-04-809 Natural Gas Flaring and Venting

several potentially cost-effective actions that would improve data 

reporting, help reduce the most harmful effects of flaring and venting, and 

improve oversight of federal leases. 

Improving flaring and venting data reporting would be an important first 

step because it would add information about the scope of the problem and 

allow actions to be targeted to those areas where flaring and venting are 

most significant. However, our review identified several limitations of the 

data currently reported that hinder such targeting. First, reliance on oiland gas-producing states to voluntarily provide flaring and venting 

information has led to incomplete data, since some states do not submit 

reports. Second, because of the limited guidance on what data to report, 

EIA considers most of the information it receives from the states to be 

inconsistent. Third, the data collected do not distinguish between flared 

gas and vented gas—an important distinction, since the methane emitted 

during venting is potentially much more harmful to the atmosphere than 

the carbon dioxide emitted during flaring. Consequently, these combined 

data are less useful than they could be in shedding light on the extent of 

methane emitted into the atmosphere during venting. Finally, on a global 

basis, some countries that flare and vent considerable amounts of gas 

report that they do not, and others underreport their flaring and venting. 

For these and other reasons, the worldwide data are considered even less 

accurate than U.S. data. 

In addition, for federal lands and offshore areas leased for oil or gas 

production, opportunities exist to help reduce the most harmful effects of 

flaring and venting and improve oversight on these leases. Specifically, 

although flaring and venting are authorized only under certain 

circumstances, when these circumstances occur, oil and gas producers 

may choose to either flare or vent. Since the emissions released during 

venting are much more harmful to the atmosphere than those associated 

with flaring, this choice is an important one. Moreover, although flaring and 

venting are generally not authorized, no oversight mechanism currently 

exists for routinely monitoring the amount of flaring and venting that 

actually takes place. As a result, MMS and BLM cannot always be assured 

that companies are appropriately restricting their flaring and venting. 

Overall, however, as is evident in the example of the United States, a robust 

natural gas market, along with a supporting infrastructure, would have the 

most significant impact on the reduction of flaring and venting. Therefore, 

changes to natural gas markets, and to the transportation infrastructure for 
Page 23 GAO-04-809 Natural Gas Flaring and Venting

moving gas to these markets, will likely be needed to offer producers an 

economic incentive to sell the associated gas rather than flare or vent it. 

Recommendations for 

Executive Action

We are making four recommendations to the Secretary of Energy to 

explore opportunities for improving data on flaring and venting and to 

weigh the cost and benefit of making such improvements. Such 

opportunities could include 

• considering the use of the department’s authority to collect flaring and 

venting information directly from the producing companies; 

• working with industry and state officials, and using guidance already in 

existence, to enhance guidelines for reporting consistent flaring and 

venting data; 

• considering, in consultation with EPA, MMS, and BLM, how to best 

collect separate statistics on flaring and venting; and

• considering working with the Secretary of Commerce to provide EIA 

access to NOAA’s analysis of satellite data to improve the accuracy of 

worldwide data on flaring. 

We are also making two recommendations to the Secretary of the Interior. 

Specifically, for federal oil and gas leases, we are recommending that the 

Secretary direct MMS and BLM to consider the cost and benefit of requiring 

that companies

• flare the natural gas, whenever possible, when flaring or venting is 

necessary and

• use flaring and venting meters to improve oversight. 

Agency Comments and 

Our Evaluation

We requested comments on a draft of this report from the Secretaries of 

Energy and the Interior, as well as the Administrator of the Environmental 

Protection Agency. The Department of Energy and Department of the 

Interior provided written responses, including technical and clarifying 

comments, which we included in our report as appropriate.
Page 24 GAO-04-809 Natural Gas Flaring and Venting

The Administrator of the Energy Information Administration (EIA), who 

responded on behalf of the Department of Energy, concurred with our 

findings and recommendations while acknowledging that the 

implementation of the recommendations would need to be balanced with 

other priorities. EIA stated it has revised the instructions on all natural gas 

forms and has committed to continue efforts to improve data quality, 

timeliness and coverage of production data that states collect. Further, EIA 

agreed to work with agencies with satellite technology to determine the 

feasibility of improving data worldwide. EIA’s comments are reprinted in 

appendix II. 

The Assistant Secretary of Land and Minerals Management, who responded 

on behalf of the MMS and BLM within the Department of the Interior, 

generally agreed with our findings and recommendations. MMS and BLM 

agreed that requiring operators to flare instead of vent whenever possible 

would reduce greenhouse gases. Further, MMS acknowledged that this 

would enhance the agency’s ability to enforce existing regulations because 

inspectors could easily view a flare; whereas inspectors cannot be detected 

venting visually and thus they must rely on the accuracy of operators’ 

records. The two agencies also agreed to evaluate the cost effectiveness of 

installing and maintaining flare tips. In addition, MMS agreed that requiring 

flaring and venting meters would improve its oversight. MMS 

acknowledged that recent incidents have shown that reliance on the 

accuracy of the operators’ calculations and recordkeeping may not 

sufficiently or accurately capture actual flaring and venting volumes. MMS 

stated that it is currently revising its Federal Outer Continental Shelf 

regulations to require installation of meters. Finally, MMS agreed that 

flaring and venting data should be reported separately and has taken initial 

steps to update its database and reporting requirements to accommodate 

this change. However, MMS stated that such a change would take time to 

complete and would only minimally add to the reporting burden of 

operators. The Department of the Interior’s comments are reprinted in 

appendix III. 

EPA provided oral comments and agreed with our findings and 

recommendations. In addition, EPA noted that our recommendations, if 

implemented, would greatly advance flaring and venting data availability 

and quality. EPA also provided technical comments, which we included in 

the report, as appropriate.
Page 25 GAO-04-809 Natural Gas Flaring and Venting

As agreed with your office, unless you publicly announce the contents of 

this report earlier, we plan no further distribution until 30 days from the 

date of this letter. At that time, we will send copies of this report to the 

Secretary of Energy, the Secretary of the Interior, the EPA Administrator, 

and other interested parties. We also will make copies available to others 

upon request. In addition, the report will be available at no charge at GAO’s 

Web site at http://www.gao.gov.

Questions about this report should be directed to me at (202) 512-3841. Key 

contributors to this report are listed in appendix IV.

Sincerely yours,

Jim Wells

Director, Natural Resources

and Environment
Page 26 GAO-04-809 Natural Gas Flaring and Venting

Appendix I

Objectives, Scope, and Methodology ApApenednxidexiIs

Regarding natural gas flaring and venting from oil and gas production in the 

United States and the rest of the world, you asked us to (1) describe the 

data collected and reported on natural gas flaring and venting and what the 

federal government could do to improve it; (2) report, on the basis of 

available information, on the extent of flaring and venting and its 

contribution to greenhouse gases; and (3) identify opportunities for the 

federal government to reduce such flaring and venting.

To do this work, we obtained currently available data on natural gas 

production and estimates of flaring and venting in the United States from 

EIA, MMS, and BLM. We determined that all the data we reviewed were 

sufficiently reliable for inclusion in this report after acknowledging the 

limitations of these data. We also interviewed officials from EIA, EPA, 

MMS, BLM, the World Bank, the United Nations, various private 

corporations and organizations, and state governments regarding data 

collection, quality of the data collected, and reporting practices. In 

addition, we contacted natural gas-producing states to determine their 

assessment of the reliability of data they collect and report. To determine 

what the federal government could do to improve data collecting and 

reporting, we interviewed officials from EIA, MMS, BLM, EPA, NOAA, and 

state officials. In addition, we obtained international data from Cedigaz, a 

French oil and gas industry association that gathers worldwide information 

on natural gas; the World Bank; the International Energy Agency (IEA), an 

intergovernmental energy policy body; and the United Nations. We 

discussed with officials of these organizations the reliability as well as the 

methods of collecting and estimating these data. 

Finally, to determine what the federal government could do to help reduce 

flaring and venting of natural gas, we reviewed the literature and 

interviewed officials from private industry, MMS, BLM, state governments, 

EPA’s Natural Gas STAR program, USAID, and various world organizations, 

including the World Bank, the United Nations, and IEA. In May 2004, we 

also attended the World Bank Global Gas Flaring Reduction Partnership’s 

Second International Gas Flaring Reduction Conference in Algeria with 

delegates from numerous other countries concerned about gas flaring and 

venting. This conference featured speakers from countries and 

corporations around the world who addressed data collection and 

reporting issues, current regulations and oversight issues, and best 

practices within their respective countries. We conducted our work from 

October 2003 through June 2004 in accordance with generally accepted 

government auditing standards.
Page 27 GAO-04-809 Natural Gas Flaring and Venting

Appendix II

Comments from the Department of Energy ApendxiI
Appendix II

Comments from the Department of Energy

Page 28 GAO-04-809 Natural Gas Flaring and Venting
Page 29 GAO-04-809 Natural Gas Flaring and Venting

Appendix III

Comments from the Department of the 

Interior ApendxiI
Page 30 GAO-04-809 Natural Gas Flaring and Venting

Appendix IV

GAO Contacts and Staff Acknowledgments ApendxiIV

GAO Contacts Jim Wells (202) 512-3841

Mark Gaffigan (202) 512-3168

Acknowledgments In addition to the individuals named above, James W. Turkett, James Rose, 

Carol Bray, and Nancy Crothers made key contributions to this report.

(360397)
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