The oil and gas industry has historically employed two options, gas re-injection and monetization, to utilize associated gas. These options are only extensively utilized in a few economically developed, oil-producing countries. As a result, global levels of flaring and venting exceed 150 billion cubic meters a year.
It is the host government’s responsibility to develop and implement policy enabling flare and vent reduction investments. Typically, the bulk of investments in gas utilization are funded by oil companies who are unlikely to commit their resources to associated gas utilization projects unless the host government creates an environment that supports their economic viability, and where the rights and obligations of the oil companies to utilize the gas are clear. Specifically, the host government is responsible for establishing this environment through legislation, regulation and market/economic measures.