The Energy Trilemma and Regulatory Complexities of Gas Flaring and Venting in the US

Abstract

The process of regulating the flaring and venting of natural gas often creates an energy policy trilemma. One way of addressing the complexities created as a result is to consider the application of energy justice principles and industry best practices to resolve issues ex ante and ex post. This paper discusses the intricacies of regulating gas flaring and venting in the US and highlights the energy trilemma that arises as a result. Such complexities are manifested in the need to curb upstream emissions arising from flaring and venting while at the same time understanding the role of production and supply systems for delivering affordable, low, or carbon-neutral energy. Energy justice principles could be applied in balancing the economics (costs and affordability) with environmental regulation and security of energy supply issues. The paper highlights the emerging bottlenecks to market access which become relevant considering the recently proposed and existing rules requiring the capture and sales of gas that would otherwise be flared. It also points to industry best practices and guiding principles that may provide helpful tools for curbing emissions and ensuring more sustainable operations

Keywords: Natural Gas, Energy, Flaring, Regulation

JEL Classification: K12, K00, K23, K21, K32