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. 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, only 8 of the 32 oil- and gas-producing states 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. 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 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. 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 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 authority 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 Bank Global Gas Flaring Reduction Partnership (GGFR) 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. 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. 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. 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). 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). 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). 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. 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 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 barriers affecting associated natural gas, and continuing to work with other countries, could help reduce flaring and venting. 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 retrofitting facilities that are already producing may not be cost effective. 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. 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. 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 a year. 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. 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 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 oil- and 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 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. 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 use flaring and venting meters to improve oversight. 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. 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. 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. 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. In addition to the individuals named above, James W. Turkett, James Rose, Carol Bray, and Nancy Crothers made key contributions to this report. The Government Accountability Office, the audit, evaluation and investigative arm of Congress, exists to support Congress in meeting its constitutional responsibilities and to help improve the performance and accountability of the federal government for the American people. GAO examines the use of public funds; evaluates federal programs and policies; and provides analyses, recommendations, and other assistance to help Congress make informed oversight, policy, and funding decisions. 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Summary:
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. 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.