The "invisible" catastrophe - How oil companies burn $50 billion worth of energy every year

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Oil producers often flare the gas that emerges alongside crude oil when there are no available pipelines, processing facilities, or buyers for the gas.

Efforts to solve one of the most thorny pollution problems in the oil industry are moving in the wrong direction. Fossil fuel producers flared even larger quantities of methane gas globally in 2025, despite years of commitments to reduce this wasteful practice, according to data released today by the World Bank. The volume of gas flared increased by 6% last year, reaching 167 billion cubic meters, a quantity equivalent to about half of Europe's annual natural gas consumption. Its combustion released more than 500 million tons of greenhouse gases — more than the annual emissions of the United Kingdom.

Oil producers often burn the gas that emerges with oil when there are no available pipelines, processing facilities, or buyers for the gas. Flares emit a mixture of pollutants, including CO2 and methane, which contribute to global warming and threaten the health of residents in surrounding areas. Most alarmingly, the data shows that gas flaring increased faster than oil production for the third consecutive year, meaning producers are becoming "dirtier" — at least on this critical indicator — for every barrel they extract. "The latest trends are disappointing," said James Turitto, a director at the Clean Air Task Force, an environmental non-profit organization. "Flaring associated gas is a waste of a nation's useful energy and financial resources, especially at a time when the world is reeling from its second energy crisis in four years."

Commitments were not met

The World Bank examines satellite data from thousands of oil and gas flaring sites around the world. It has been producing data using this methodology since 2012. The total for 2025 was the second-highest in those 14 years, trailing only 2019. This increase occurs despite years of industry and government commitments to phase out flaring. More than 50 companies signed the Oil & Gas Decarbonization Charter presented at the COP28 climate summit in 2023, which pledged steep emission reductions and limits on flaring. Simultaneously, dozens of governments have developed policies aimed at curbing this practice. "All parties must become much more accountable than they have been historically," said John Shinn, a former climate change and sustainability advisor for Chevron Corp. The gas burned each year is enough to power hundreds of data centers, and its value exceeds $50 billion, according to the World Bank.

"The scale of the waste is quite staggering, especially since a large part of this problem can be fixed with proven technology, while simultaneously yielding attractive returns," said Mark Davis, managing director of Capterio, a UK-based gas flaring monitoring firm. Pollution from flares also harms the health of people living nearby. A 2024 study by researchers at the University of North Carolina at Chapel Hill and Boston University calculated that flaring and venting gases from oil and gas activities in the US cause 710 premature deaths, 73,000 childhood asthma exacerbations, and more than $7 billion in annual health damages.

All eyes on Russia, Iran, and Iraq

Russia, Iran, and Iraq accounted for half of all gas flaring globally last year, according to World Bank data. Venezuela, Mexico, Libya, Algeria, Nigeria, and the US contributed another third. Of these nine countries, the US was the only one that reduced flaring last year — with the help of the completion of the Matterhorn Express Pipeline, which allows oil producers in the Permian Basin to sell gas that was previously flared. Overall, flaring in the US decreased by 7% to 5 billion cubic meters. This is 58% below the country's peak level reached during the shale oil boom, although it remains stagnant compared to a decade ago.

The example of Kazakhstan

A notable success story is Kazakhstan. A decade ago, the country ranked ninth globally in gas flaring. However, the government implemented legislative bans and imposed financial penalties on producers who violated these rules. The country reduced flaring by 88% over the last decade, even as oil production increased, proving that enforcing laws can bring results.

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