By Stefanie Eschenbacher

PROCESADOR de GAS CACTUS Mexico (Reuters) – It’s never dark in Colonia El Carmen in Mexico, the state in poorer southern Chiapas.

Flares dotted around Cactus’ (NYSE:) gas treatment center run by Petroleos Mexicanos state oil company (Pemex), create a bright red glow after sunset.

It is incapable of processing the huge amount of natural gas produced as byproducts of oil production. The system burns it and then disposes off the rest by burning it. This practice, which is widely used in the industry but is considered harmful by scientists.

It is more economical to burn the gas than invest in infrastructure to collect, process and transport it. Flaring also releases carbon dioxide but methane is a potent greenhouse gas.

NASA satellite images of Mexican flare locations were analyzed by the Earth Observation Group of Colorado School of Mines for Reuters. The results showed that the Mexican President Andres Manuel Obrador has seen a dramatic increase in gas flaring.

According to data, Mexico is now among the top 10 global flarers, with a volume that has risen by half from 3.9 billion cubes (bcm), when Lopez Obrador was elected in 2018, to 5.8 bcm by 2020.

The preliminary data for the first ten months of 2021 suggests Mexico could break the 2020 record of flaring activity. This was confirmed by the Colorado School of Mines Team, which found that February saw an unprecedented monthly high.

New data shows that Mexico, despite signing an international methane emission reduction pledge, is not moving in the same direction as a worldwide push for reducing greenhouse gas emissions.

Pemex refused to comment. Mexico’s presidency and energy ministries as well as the environmental regulator have not responded to multiple requests for comment.

Mexico is among 34 countries – as well as 51 oil companies – that have signed a World Bank-backed pledge https://www.worldbank.org/en/programs/zero-routine-flaring-by-2030/endorsers to cut routine flaring to zero by 2030.

Christopher Elvidge (principal investigator of the Colorado School of Mines) stated that there has been an increase in the number of flare locations and in the amount of gas being flared in Mexico.

Satellite data provides the most comprehensive global information available on daily temperature and location of flares in the oil industry.

It is not known if the preliminary 2021 data have been published before. The analysis of 2020 numbers provided the first comprehensive picture of flaring in Mexico.

The data indicated that Chiapas was the epicenter for a drastic rise in gas flares, near several populations centers.

Pemex recognized last year that the top ten problems faced by it were flaring, outdated infrastructure and inadequate technology.

Lopez Obrador has put pressure on the largest and most indebted oil company of state, making it more difficult for them to boost crude oil production with minimal private investment.

Left-leaning nationalist President Donald Trump wants Mexico to be self-sufficient in its energy supply. Satellite data shows that flaring has increased since his election, and oil production is down as Pemex rely on mature fields with higher gas concentrations.

Lopez Obrador said that it would take some time for Pemex to recover from decades of poor management and plundering.

Mexico produces more flare and less oil – https://graphics.reuters.com/MEXICO-PEMEX/FLARING/jnvwelmxlvw/flares-vs-production.jpg

SET FOR ANOTHER RECORD YEAR

The scientists believe that increasing flaring releases millions of tons more greenhouse gases. However, Pemex has not disclosed the total amount of emissions nor the gas being flared, vented, or any other waste.

Tamara Sparks (a researcher who examined the data) said that “the high-and rising – flaring activities have both local and global effects.” She was referring to the pollution of local communities as well as the impacts on global warming.

Sparks explained that “new flare sites, as we saw in Mexico 2020,” may not function as effectively as a stable, well-established flare. Sparks also suggested it might result in more methane emissions.

Data for 2020, which is the best visualization to date of Mexico’s flares, revealed that there was an increase in the number of flares to 195, compared to 141 two-years earlier. The largest increases were recorded in Chiapas and Tabasco, while Veracruz saw the greatest spikes.

Also, it showed that the locations of three of the largest flares in Colombia were close to many villages, such as Colonia El Carmen.

Where the largest flares are located – https://graphics.reuters.com/MEXICO-PEMEX/FLARING/byvrjxgknve/flares-map.jpg

RESIDENTS’ ‘HELL’

Colonia del Carmen, home to approximately 4,000 people, listed six environmental issues linked to flaring from July in an officially filed complaint to Pemex. It was stamped Sept. 30, as received. Pemex is still waiting for their response, said residents.

The complaint included photographs showing oil residue on roads and vehicles, as well as in a lagoon that was used for fishing. The residents cited numerous flares that were so big they created panic and intense heat, which led to cancellation of an outdoor cinema for children.

According to 15 different interviews, people said they had suffered from headaches or a cough; children reported itching eyes and itchy skin.

Some others pointed out a sulfury-like odor, ash rainfalls, or contaminated soil.

Orbilio Garcia who lost his family’s land to Pemex in order to increase Pemex operations said that it was “like hell”. We moved away from our son’s birth because we were so worried about his health. However, we are unable to relocate and begin over.

Reuters was unable to independently verify the allegations and could not ascertain if residents’ health problems were related to flaring.

AT GROUND LEVEL

Reuters traveled to Chiapas and Tabasco during October for several days. They counted over 30 sites at Pemex’s guarded property, where hydrocarbons and gas were being burned – fires which would be recorded by satellite imagery.

Near Colonia del Carmen were more than twelve fires. These fires are nestled between Nuevo Pemex processing centers and Cactus gas processing centres.

Reuters photographed images showing the huge flames rising from large pits that were filled with liquid. These black smoke clouds eventually blew into the air.

Eduardo Prud’homme was an energy consultant and spent 20 years at Pemex. The color, movement, and form of smoke seen in the Reuters footage indicates that gas has been burned with heavier hydrocarbons. This could have resulted from abandoned wells or leaking infrastructure.

“This isn’t normal. Prudhomme also said that this is not normal.

Reuters couldn’t independently confirm the analysis. Pemex, the manager of the Cactus gas process center, did not reply to our requests for comment.

Pemex has a legal obligation to inspect, maintain, and repair its infrastructure. However, Mexican energy experts, which include five former and current regulators, said that it is difficult to impose sanctions.

Rosanety Barrios spent nearly two decades as an energy regulator and minister. She said that sanctioning the state-owned oil company which makes up about 25% of the federal budget “doesn’t seem probable” because the government considers it its “top priority” to achieve energy independence was not likely.

Barrios claimed that Pemex faces pressure to produce while the government finances face similar pressures.

Mexico is not on track to meet climate goals – https://graphics.reuters.com/MEXICO-PEMEX/FLARING/gkplgjnlwvb/climate-targets.jpg

POLICIES deemed ‘HIGHLY InSUFFICIENT’

According to Lopez Obrador, the lack of investment in maintenance is aggravating flaring. Lopez Obrador prefers production and exploration activities over regulatory sources. Lopez Obrador also spoke out on behalf of Reuters.

President of Mexico, Carlos Mejia, is looking to expand hydroelectric and reforestation power in Mexico to help meet the country’s international emission goals.

Climate Action Tracker, a site run by independent scientists, rates Mexico’s policies to be “highly insufficient” in meeting a goal of holding global warming to well below 2 degrees Celsius – let alone the stricter target https://www.gob.mx/sre/prensa/mexico-united-states-joint-statement-on-climate-change?tab= of 1.5 degrees agreed at a U.N. climate conference in Paris in 2015.

The conclusion was that Lopez Obrador’s policies are likely to lead to increased rather than decreased emissions.

Two Pemex geologists who had access to reserve data said that the problems of reducing flaring will only get worse.

Pemex not only extracts as much oil from mature oilfields as possible – where more gas tends toward the surface – but they also claim that the unique geological properties of new oilfields include greater gas.

Reuters was informed by the National Hydrocarbons Regulator that it did not have a projection of future flaring due to uncertainty over the geological properties of the fields and the infrastructure to use gas.

Pemex admitted in its most recent quarterly report that 13% gas from oil production that reaches the surface is being wasted at the moment is still waste. That figure was much greater than the 2 percent limit that regulators have set.