gas flaring and sustainable development - thomas eid (norad)
TRANSCRIPT
Oil for Development – OfD
www.norad.no/ofdWorkshop; AmsterdamThomas Eid/03.12.08
Januar 2008
Past & Present Norway has given petroleum assistance from the mid
1980s (Vietnam\Mozambique) A special program (Oil for Development) started in
2005. Strengthened environmental and financial aspects of the assistance
Budget : USD 35 mill. Operates in 25 countries plus regional programs.
OfD – our foundation
OfD is built around three integrated themes:
1. Resource management2. Environmental protection3. Revenue management
Principles of good governance, transparency and accountability are a fundamental part of the three themes
OfD – main objective
• Help cooperating countries to manage their petroleum resources in a way that generates sustainable economic growth, promotes the welfare of the whole population and is environmentally benign
• Combats the ”resource curse”
Core countries
Flaring and Resource Management
Flaring of associated gas is a massive resource waste Flaring in Africa 40 bcm – enough to generate 250
TWh/year of electricity Twice the electricity consumed in Sub Sahara Africa
(excluding South Africa) Bringing flared gas to markets diversifies energy supplies
and reduces energy import dependence Better to re-inject (and save for future generations) than
to flare gas
Flaring and Environmental Protection Flaring a major source of greenhouse gas emissions
Some 400 MT CO2e emitted annually from gas flaring 2 times EUs Kyoto Compliance Gap per annum
So far no sign of downward trend it flaring, but a mixed picture Some countries are successful in flare reduction efforts But new flares emerge in regions with poor market outlets
Climate change concerns require swift action to reduce flaring Companies must become more pro-active Governments must impose adequate and effective policies The Kyoto Mechanisms (CDM;JI) must play a role
Flare reduction projects grossly underrepresented in CDM and JI
Flaring and Revenue Management Flare elimination – revenue potential for the state
Corporate taxes and royalty from gas sales
State-owned oil companies Revenues from carbon
credits
Flaring and Local Benefits Flaring elimination has positive effects for local communities
Local air pollution Health impacts Less pressure on natural environment
End to continuous light and noise from flares
Flare elimination can provide access to modern and clean fuels LPG can be processed from previously flared gas and be
distributed locally Offers an attractive alternative to unsustainable use of
tradition fuels traditional fuels often result in land degradation and
serious health problems
OfD – WHO are stakeholders?
• National governments• Norwegian ministries; The Norwegian Petroleum
Directorate, Petrad, the Norwegian Pollution Control Authority, consultancies and research institutions
• The Extractive Industries Transparency Initiative (EITI)
• Norwegian and international oil and service companies; where appropriate
• NGOs• World Bank, African Dev. Bank, IMF, UNDP
HOW do we work? - Resource mgt.
• Strengthening of local institutions (ministries & directorates)
• Development/assessment of petroleum legal frameworks
• Framework for exploration and production of petroleum
• Resource databases • Strategies for transparent licensing and tendering
processes• Policies to stimulate technology development and the
involvement of local industry
HOW do we work? - Environmental mgt• Build environmental management capacity within the
sector• Basic legislation, rules and regulations covering
environmental dimensions of the petroleum sector• Minimise discharges from activities• Environmental impact assessments • Manage gas flaring and other national/global climate
challenges that are directly related to the petroleum industry
OfD Gas flaring
÷ Economy
÷ Environment
÷ Sustainability