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Gas flaring and sustainable development - Thomas Eid (NORAD)
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Gas flaring and sustainable development - Thomas Eid (NORAD)

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  • You can find more information about the Oil for Development initiative on the website: www.norad.no/ofd
  • Transcript

    • 1. Oil for Development – OfD www.norad.no/ofd Workshop; Amsterdam Thomas Eid/03.12.08 Januar 2008
    • 2. Past & Present
      • Norway has given petroleum assistance from the mid 1980s (VietnamMozambique)
      • 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.
    • 3. OfD – our foundation
      • OfD is built around three integrated themes:
      • Resource management
      • Environmental protection
      • Revenue management
      Principles of good governance, transparency and accountability are a fundamental part of the three themes
    • 4. 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”
    • 5. Core countries
    • 6. 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
    • 7. 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
    • 8. 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
    • 9. 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
    • 10. 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
    • 11. 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
    • 12. 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
    • 13. OfD Gas flaring
      • ÷ Economy
      • ÷ Environment
      • ÷ Sustainability