ASIATODAY.ID, WASHINGTON — The world is wasting enough natural gas to power entire economies while millions still struggle with energy shortages, according to a new World Bank report that highlights a growing contradiction in the global energy landscape.
The World Bank Group’s 2026 Global Gas Flaring Tracker revealed that global gas flaring increased for the third consecutive year, reaching 167 billion cubic meters (bcm) in 2025. The volume of gas burned off at oil production sites is valued at approximately US$54 billion and is nearly equivalent to Africa’s entire annual natural gas consumption.
The findings underscore a major challenge for both energy security and climate goals. Gas that could be used to generate electricity, fuel industrial growth, create jobs, and strengthen national energy systems is instead being flared into the atmosphere, contributing to greenhouse gas emissions while destroying significant economic value.
According to the report, nine countries account for more than 80% of global gas flaring: Russia, Iran, Iraq, Venezuela, Mexico, Libya, Algeria, Nigeria, and the United States. Together, these nations represent roughly half of global oil production.
“At a time when many countries are struggling to increase affordable and reliable energy, the economic development costs of continued flaring are simply too high,” said Demetrios Papathanasiou, the World Bank Group’s Global Director for Energy on June 23, 2026.
He noted that the gas currently being wasted could instead power industries, support businesses, create jobs, and enhance energy security.
The report also highlights a striking paradox in many developing economies. Several countries continue to import expensive natural gas while simultaneously flaring substantial volumes of domestically produced associated gas from oil fields.
The World Bank estimates that eliminating routine flaring worldwide would require investments of between US$70 billion and US$100 billion—less than twice the annual market value of the gas currently being wasted.
For countries facing rising energy demand, high import bills, and supply constraints, capturing and utilizing flared gas could significantly improve energy access, generate new revenue streams, and reduce costs for consumers and industries alike.
Despite decades of technological advancement, progress remains slow. The World Bank argues that the primary barriers are no longer technical. Instead, weak regulatory frameworks, insufficient infrastructure, limited access to capital, and a lack of political and corporate prioritization continue to hinder meaningful reductions.
Yet the report points to successful examples demonstrating that rapid progress is achievable when strong policies, investment, and leadership align.
Kazakhstan stands out as one of the most notable success stories, having reduced gas flaring by 87% since 2012, including a further 16% decline in 2025 alone.
“The technologies, policies, regulations, and financing mechanisms needed to capture and utilize associated gas are available,” said Zubin Bamji, Manager of the World Bank’s Global Flaring and Methane Reduction (GFMR) Partnership.
“What is missing, in too many places, is the leadership, prioritization, and governance needed to put these solutions into practice. The cost of inaction will be measured in wasted billions in revenue and energy insecurity for millions of people.”
The report suggests that reducing gas flaring is no longer solely an environmental objective. Increasingly, it is becoming a strategic economic and energy security imperative, particularly for emerging economies seeking to accelerate industrialization, strengthen competitiveness, and expand access to reliable energy.
As governments worldwide race to secure new energy supplies and fuel economic growth, the World Bank’s latest findings serve as a stark reminder that billions of dollars worth of energy continue to go up in smoke every year. (AT Network)
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