Economic And Environmental Impact Analysis Of Gas Flaring In The Niger Delta

ABSTRACT

Gas flaring is the burning of natural gas and other petroleum hydrocarbons in flare stacks by upstream oil companies in oil fields during operation. A procedure for analysing the economic and environmental impact of gas flaring is presented. The main objective of the study is to provide the data required for the complete analysis and evaluation of the various observed and noted environmental effects of gas flaring in Niger Delta. Several visitations to the neighbouring communities adjacent to most gas flare locations were carried out to ascertain any existence of common environmental hazards. Data was gathered through a well designed and articulating oral and written questionnaire, direct and first-hand observation of their environment, and comprehensive interview sessions with community heads, patients and youths. Different samples at various proximities from the gas flare locations were taken and measurements and experimentations meticulously carried out. The economic analysis was done using the project economic approach to analyse two case scenarios of “do not flare and continue to flare case”. The results obtained show that approximately 60% of the total gas produced between 1986-2006 was flared, which equals $7.69 billion loss in monetary terms with slight drop to 53% in 2008. An average of 53% of total AG produced for 2008 was which equals $7.23 million loss in monetary terms with some operators flaring approximately 100% of its produced AG. The quantity of carbon emitted by these flare is about 2525000.00 tonnes per day. A higher DCF-ROR value was obtained for “do not flare case” making it a better alternative. The values obtained for measured parameters shows a marked trend as all the parameters considered showed a gradient away from the flare point in all the flow stations such as soil pH changing from acidic (4.0-4.2) to near neutral (6.4 – 6.6) away from the flare points and the average low moisture content of (17% - 23%) as against 40% for the (10m and 20m) and control distance. The results obtained confirm that most of the environmental problems claim from different indigenes of communities adjacent to gas flare locations are true effects and reflections of the gas flaring activities in those regions.

This study recommends that gas flaring should be seen as violet action against the people and that the flared gas should be channelled to meeting the ever increasing demand for energy in the industrial sector of the economy.

Keywords: Gas flaring, CO2 emissions, Natural gas, Associated gas, Non Associated gas, Greenhouse gas, DCF-ROR