Petroleum Exporting Research Articles

The Impact of the Oil Industry on the Economic Development of Nigeria

The study examined the impact of the oil industry on the economic development of Nigeria. The Nigerian petroleum industry dominates the Nigerian economy in terms of profits and revenue. According to the recent Petroleum Export Organization (OPEC) report, Nigeria currently ranks as the world's tenth-largest crude oil reserves and also the world's fifteenth crude oil producer. According to national statistics, the industry generates for the country more than 95% of the country's external revenue and about 80% of government revenue. Secondary data collected on the economic variable used in the study comes from the World Bank, worldometer, and the International Monetary Fund, Statistical Review of World Energy, Central Bank of Nigeria (CBN) Statistical Bulletin, CEICDATA (Organization of the Petroleum Exporting Countries) from 1990 to 2016. An augmented Dickey-Fuller unit root test, and autoregressive distributive lag (ARDL) method, and ARDL related to the test co-integration with various other diagnostic techniques were used for the study. The result reveals that oil production contributed to economic development, but the consumption and export of crude oil did not contribute to the improvement of the Nigerian economy. The study concluded that the government should implement policies that would encourage the private sector to actively participate in the crude oil sector and sectors of the economy. In addition, the government should use the revenue generated from oil to invest in other national sectors such as agriculture and manufacturing to expand the revenue stream of the economy

How does oil policy uncertainty influence resource rents? New empirical evidence from Organization of the Petroleum Exporting Countries

AbstractThe uncertainty surrounding oil‐related policies has raised concerns about its influence on revenues derived from resource extraction activities. In this view, the current study aims to investigate the nuanced relationship between oil policy uncertainty (OPU) and resource rents, focusing on oil rents (ORTs), natural gas rents (NRTs), and total resource rents (TRT). Analyzing data spanning from 1985 to 2019 across Organization of the Petroleum Exporting Countries, various econometric models including DOLS, FMOLS, and autoregressive distributed lag are employed to assess the impact of OPU on resource rents. The empirical findings reveal a significant negative effect of heightened OPU levels on resource rents, indicating a reduction in ORT, NRT, and TRT. This negative impact underscores the deterrence of long‐term investments in oil exploration and production due to regulatory unpredictability, leading to decreased revenues from oil extraction activities. Additionally, increased OPU contributes to heightened volatility in oil prices, disrupting the stability of resource rents. Furthermore, variables such as FDI inflow, inflation rate, and banking sector development exhibit positive relationships with resource rents, emphasizing their role in bolstering revenues derived from natural resources. The study's implications highlight the necessity for policymakers to address and mitigate OPU to foster stability and sustainable revenues within resource‐driven economies. This study contributes to the existing literature by offering empirical insights into the adverse impact of OPU on resource rents.

Do Digital Adaptation, Energy Transition, Export Diversification, and Income Inequality Accelerate towards Load Capacity Factors across the Globe?

To limit global warming to 1.5 °C, it is imperative to accelerate the global energy transition. This transition is crucial for solving the climate issue and building a more sustainable future. Therefore, within the loaded capacity curve (LCC) theory framework, this study investigates the effects of digital adaptation, energy transition, export diversification, and income inequality on the load capacity factor (LCF). This study also attempts to investigate the integration effects of digital adaptation and energy transition, and digital adaptation and export diversification, on LCF. Furthermore, we explored how income inequality influences the LCF in economies. For this study, 112 countries were selected based on the data availability. Panel data from 2010 to 2021 were analyzed using the STATA software 13 application utilizing a two-step system generalized method of moments (GMM) approach. First, interestingly, our finding shows that digital adaptation and income significantly affect the LCF. An increase in income increases the LCF among the middle-income group of countries. Therefore, LCC is confirmed in this research. Surprisingly, energy transition, export diversification, and foreign direct investment negatively impact the LCF in the base model. Second, the impact of integrating digital adaptation and energy transition has a positive effect on LCF. Third, a negative correlation was observed between the interaction of export diversification and digital adaptation with the LCF. Fourth, a positive correlation was observed between the interaction of renewable energy and digital adaptation with the LCF. Finally, this study explores the impact of the energy transition, export diversification, and income inequality on the LCF with reference to the Organization of Petroleum Exporting Countries (OPEC). The result shows a negative effect between export diversification and LCF among OPECs at a 10% significance level. To improve the quality of our planet, policymakers must understand the forces causing climate change. By adopting a comprehensive perspective, the study aims to understand how these interrelated factors collaboratively influence the LCF thoroughly. Additionally, this research seeks to provide valuable insights related to energy transition, digital adaptation, and export diversification to policymakers, researchers, and stakeholders regarding possible avenues for cultivating a more joyful and sustainable global community.

Economic growth in OPEC nations: The role of renewable energy consumption, CO2 emissions, and foreign direct investment

Background: The nations that make up OPEC (the Organization of the Petroleum Exporting Countries) have traditionally depended on gas and oil export earnings. However, there is a significant global shift towards renewable energy in an effort to reduce the impact of climate change. This research aims to analyze the effect of Renewable Energy Consumption, CO2 Emissions, and Foreign Direct Investment (FDI) on the Economic Growth in OPEC Nations partially and simultaneously. Methods: In this research, panel data regression analysis techniques are combined with quantitative research approaches. Secondary data from the World Development Indicators (WDI) for the years 2001–2020 were used in this research. Finding: This research showed that the Renewable Energy Consumption and CO2 Emissions variables do not affect economic growth in OPEC countries. Meanwhile, the foreign direct investment variable has a positive and significant effect on economic growth in OPEC countries. Conclusion: OPEC countries need to diversify their economies and reduce their dependence on oil as there is a global shift towards cleaner energy. Novelty/Originality of this article: This study analyzes the impact of Renewable Energy Consumption, CO2 Emissions, and Foreign Direct Investment on Economic Growth in OPEC countries using panel data regression analysis. The study's findings show that only Foreign Direct Investment positively and significantly impacts economic growth.

Impact of Overseas Development Assistance on Economic Growth in Nigeria (1981-2021)

Nigeria currently has the largest economy in Africa with a GDP of $477.38 billion (Michael, 2023). However, the country’s great fortune, which is majorly driven by petroleum exports, has not successfully translated into a sustained economic development, as the nation continues to endure widespread poverty and income inequality for decades due to many contributing factors, including rapid population growth, low standard of education, and corruption. Consequently, Nigeria has looked to Overseas Development Assistance (ODA) as one of many means to address its economic problems, and this ODA phenomenon has raised debates among scholars with regards to its positive or negative impact, and the significance of such impact on the Nigerian Economy. This study investigated the amount of ODA received by Nigeria for the period 1981-2021, and the changes that such assistance has effected on the GDP of the nation. The study examined the empirical research by other scholars, for the same study, under a spectrum of economic, geographic and political climates. The Auto Regressive Distributed Lag (ARDL) Bounds Cointegration Test and the Granger Causality test were adopted for this study, and the results revealed that ODA impacted Nigeria’s GDP significantly and positively in the period of study. This study therefore recommends that the Federal Government of Nigeria, as well as other stakeholders, should pursue and maintain more favourable relationships with the international multilateral and bilateral donors, in order to boost economic growth in Nigeria.

Do OPEC+ policies help predict the oil price: A novel news-based predictor

The OPEC+, composed of the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC oil-producing countries, exerts considerable influence over the global crude oil market. However, existing literature lacks a comprehensive application of this factor in oil price forecasting, primarily due to the complexity of measuring such policy evolutions. To address this research gap, this study develops a news-based OPEC+ policy index based on text mining methods for comprehensive analysis and forecasting of the oil price. First, by crawling and mining news headlines related to OPEC+ production decisions, a dynamic and high-frequency (weekly) OPEC+ policy index is established. Second, the linear and nonlinear relationship between the proposed OPEC+ policy index and the WTI crude oil futures price is thoroughly examined, assessing the potential predictive power of the index in explaining the movements of the crude oil price. Third, the forecasting efficacy of the constructed index on the oil price is rigorously evaluated across eight econometric and machine learning models. Key findings include: (1) The proposed weekly OPEC+ policy index demonstrates strong concordance with OPEC+ production change decisions, exhibiting notable peaks and troughs corresponding to OPEC+ Ministerial Meetings. (2) The relationship analysis demonstrates a strong linear and nonlinear association between the proposed OPEC+ policy index and the crude oil price. (3) For oil price prediction, models incorporating our proposed OPEC+ policy index demonstrate superior performance compared to models without this index. In particular, the index exhibits a more significant predictive effect within three-week forecasting horizons and performs exceptionally well during periods of pandemic and the Russia-Ukraine conflict. In addition, the OPEC+ policy index also exhibits a significant predictive effect on the daily crude oil price and natural gas price, further confirming the robust and powerful forecasting capability of this index within the energy system.

The Effort of The Government and Its Impact on Maintaining the Stability of Cooking Oil Prices

The phenomenon of oil scarcity and rising world oil prices have had an impact on the increase in cooking oil prices in Indonesia. The Indonesian government, through the Ministry of Trade, is trying to intervene in the price of cooking oil by providing oil subsidies and export bans. This article aims to describe the policy process carried out by the Indonesian government to reduce the price of cooking oil and its impact on the traditional market economy. This field research was conducted at the Srijaya Sayur Traditional Market, in Madiun City using qualitative methods. Primary data was collected using interviews with traders, sales from cooking oil distributors, and market managers. The findings of this research reveal that the price intervention policy implemented by the government was initially carried out suddenly. However, as time goes by, the Indonesian government has taken steps to improve the price of cooking oil which is well spread throughout Indonesia. This is in line with Ibn Taymiyah's thoughts on the concept of distribution justice and price policy through government intervention. The positive impact of the policy of banning petroleum exports and providing subsidies has made the price of cooking oil affordable and in line with people's purchasing power. The negative impact is that many market distortions, starting from distribution processes, hoarding and selling prices that do not comply with the policy, to shortages of goods that occur in traditional markets, especially at the beginning of the policy. In the end, this negative impact began to subside along with the abundance of oil stocks on the market which was strengthened by the government's efforts to eradicate all individuals involved in becoming mafias and breaking the law.

Influence assessment of shut-in duration and well startup sequence in different geological and field conditions

During 2019-2021, about half of well stock at West Siberian oil fields were shut down for a long period (up to one and a half year) due to oil production restrictions under the agreement between Russia and OPEC (Organization of the Petroleum Exporting Countries). There have never been such large-scale and prolonged shutdowns before. After starting from a long-term shutdown, the flow rate of some wells increased, while others decreased.The main aim of research is to assess the geological and technological factors affecting the results of starting wells after a long shutdown. Statistical methods were used, including multivariate regression analysis, assessing the influence of parameters on each other using trend lines on cross-plots, as well as constructing and comparing maps of geological and technological parameters.As a result, the influence of the duration of downtime, the simultaneity of shutdown of production and injection wells and compensation of production by injection was determined. That will help to reduce losses in case of repeated production restrictions by selecting optimal candidates for shutdown.

Resource curse in OPEC with varied levels of financial regulations and constraints: The role of oil price shocks and digital finance

Economic growth and development are crucial for global economies, and a nation's physical, human, and natural resources significantly impact its trajectory. Natural resource-rich nations can benefit or face the resource curse. Henceforth, this study examines the economic growth of Organization of the Petroleum Exporting Countries (OPEC), considering digital finance, financial regulations, and oil price shocks. Understanding the intricate relationship between oil price fluctuations and digital finance within diverse financial regulatory frameworks is essential for a comprehensive grasp of the resource curse in OPEC. The research employed a bias-corrected dynamic panel and MMQR model to analyze datasets from 2004 to 2022. The study reveals that Oil price shocks have led to higher economic growth when there are moderate financial constraints. However, they have a detrimental effect when the financial system is either very constrained or highly unconstrained. Digital finance has been shown to enhance Gross Domestic Product (GDP) across various levels of financial regulations. The GDP of OPEC experiences a significant adverse effect when digital finance and oil price shocks are coupled, particularly in the presence of stringent financial rules. This outcome is mainly attributed to the adverse influence of oil prices. The findings above underscore the need for moderate levels of financial regulations that support the favorable influence of oil prices and digital finance on GDP. The study additionally suggests a prospective strategy for enhancing GDP growth in OPEC nations: facilitating digital finance.

ENERGY INDEPENDENCE STRATEGY: NEW APPROACHES TO COMPETITIVE AND SUSTAINABLE DEVELOPMENT

The energy independence impact on the competitive and sustainable development of the country has been researched in the article. Key challenges and problems related to maintaining the stability and the energy system efficiency are identified, including insufficient generation facilities capacity, dependence on energy imports, and environmental pollution issues. Energy problems have been examined at the individual, household, and national levels, as well as their interrelation. Attention has been paid to the fact that the issues in the country’s energy system affect the quality and reliability of energy supply to the population, limiting their freedom of choice and interaction with energy management systems. Dependence on energy imports complicates the country’s energy situation and puts it in a vulnerable position in the global energy market. The development trends of crude oil market have been considered, its production in different regions of the world was analyzed, as well as the role of the Organization of Petroleum Exporting Countries (hereinafter – OPEC) in regulating the prices and volumes of the oil market. In connection with the increase in world needs for energy resources, there is an increase in oil production, particularly, in 2022, a historical record for the production of this resource has been observed. This is by 1.6% higher than in 2021. The leaders in terms of crude oil production are primarily the countries of the Middle East, where the production of this resource in 2022 increased by 13%, in particular at the expense of countries such as Saudi Arabia (16%), United Arab Emirates (15%), Kuwait (8.1%) and Iran (5.9%). Information about the largest oil producers and their contribution to the overall extraction volume has been provided. Attention is paid to the problems of oligopoly in the world oil market, noting the significant influence of several large companies and exporting countries on this market. The first place in terms of crude oil production in the world is occupied by the USA – 762 Mt, the second – Saudi Arabia – 601 Mt, the third – russia (539 Mt), significant volumes of oil are also produced in such countries as Canada, Iraq, China, United Arab Emirates (hereinafter – UAE), Iran, Brazil, Kuwait, Mexico and Norway. Attention is focused on the challenges of oligopoly in the global oil market, noting the significant influence of several major companies and exporting countries on this market. Attention has been drawn to the difficulties of unmonopolization of the energy market because of the peculiarities of the natural resources’ placement and existing technological and economic developments. It has been proven that the development of a competitive environment and the increase in energy independence and security are strategic tasks necessary for sustainable economic development. The achieving competitive and sustainable development of countries economy possibilities through the alternative energy sources use and the energy cooperatives creation have been justified, which will contribute in providing access to sustainable, efficient, and environmentally friendly energy, thereby promoting the development of local communities and competitive and resilient development of socio-economic systems. Suggestions are made for the development of alternative energy sources and energy-efficient technologies as key directions of the strategy for energy independence. The necessity of innovative solutions and international cooperation has been emphasized to ensure energy security and stimulate sustainable economic growth of Ukraine.

JOINT VENTURE, TECHNOLOGY TRANSFER AND THE PERFORMANCE OF NIGERIAN OIL AND GAS INDUSTRY

Purpose: The objective of this study is to examine joint venture, technology transfer on the performance of Nigeria's oil and gas sector between 1981-2021. Theoretical Framework: It is indisputable that the Nigerian oil and gas sector is not at peak performance when compared to what is obtainable from its peers in the Organization of Petroleum Exporting Countries (OPEC) (Iheukwumere, 2021; OPEC, ASB 2020). One of the factors responsible for the abysmal performance is ineffective and incoherent technology transfer management through joint venture arrangements (Odusina, 2022). Therefore, there is a need to empirically investigate the impact of joint venture arrangements on Nigeria's oil and gas sector production which lacks sufficient research. Methodology: The ex-post facto design was used where data were collected through secondary sources on the aggregate output of the joint venture companies and the total yearly output of the upstream sector of Nigeria’s oil and gas industry represented the performance of the Nigerian oil and gas sector in the period 1980 to 2021. The collected data were analyzed using the Quantile Autoregressive Distributed Lag (QARDL) approach to test for short and long-run impacts. Findings: The study revealed that there is a significant impact of joint venture arrangements on oil and gas production in both the short run and long run. Research, Practical & Social Implication: The study therefore recommends that policymakers and industry stakeholders should carefully evaluate the terms and conditions of joint ventures to ensure their alignment with the goals of maximizing oil and gas production. Originality/Value: The use of joint venture as a proxy for technology transfer in the production of oil and gas in Nigeria and use of secondary data between 1980-2021 for joint ventures is an eye-opener for further exploration of the study areas in oil and gas production management, particularly in the area of technology transfer, which lacks sufficient research.

A Kingdom of Possibility

A Kingdom of Possibility

Does resource richness help in uplifting the economic status of resource‐abundant developing countries? Evidence from Organization of Petroleum Exporting Countries using methods of movements quantile regression

AbstractIt has been clearly shown that despite having an abundance of natural resources, several resource‐rich countries have experienced slower economic growth that makes it challenging for them to use these resources as a driver of growth. The relationship between economic growth and natural resources has remained an issue of debate over the decades. However, the question of natural resources being a curse or blessing for resource‐abundant economies is still unanswered and gathered the attention of many researchers. The goal of the present study is to provide fresh insights on the matter by estimating the relationship between economic growth, oil resources and natural resources in top oil‐rich Organization of Petroleum Exporting Countries (OPEC) over the 1990–2020 period. The augmented mean group (AMG) and recently introduced methods of movements quantile regression (MMQR) are applied in the study for empirical estimation as the cross sectional dependence and slope heterogeneity are present in data series. The findings of both AMG and MMQR regressions show that oil resource richness does not contribute to uplifting the economic status of the studied countries. However, opposite findings are found for natural resources. Moreover, Granger causality analysis shows that unidirectional causal association is present between natural resources and economic growth but oil resources and economic growth have no causal relationship. It is concluded from the findings that the oil resources confirm the resource curse hypothesis, whereas natural resources confirm the resource bless hypothesis. The findings recommend the policymakers and government to enact adequate policies to connect rent‐based industries to other sectors and improvements in the financial sector to make an avenue for rents to effect economic growth. Most importantly, the government is recommended to pair these measures with anti‐corruption policies to ensure the sustainable use of the resources.

Analysis of Crude Oil Market Volatility and Macroeconomic Conditions: Empirical Evidence from Nigeria

This study aims to investigate the relationship between the volatility of the crude oil market and the macroeconomic conditions in Nigeria. The author used the methods of the auto-regressive distributed lag (ARDL) model in conjunction with the generalized autoregressive conditional heteroscedasticity (GARCH) to determine the extent of volatility using a monthly dataset from January 2012 to December 2022. The author regressed the crude oil price volatility index on Organization of the Petroleum Exporting Countries (OPEC) production quotas, conflicts, GDP growth rate, exchange rate and inflation. The results indicate that oil price volatility relates negatively to GDP, implying that the volatility of crude oil prices dampens growth in Nigeria. The paper concludes that rising oil prices heighten inflation, depreciate the exchange rate and depress growth in Nigeria. To hedge against oil price volatility, the paper recommends that the Nigerian government adopt policy measures that would increase energy efficiency and reduce the country’s dependency on oil exports through diversification in other related productive sectors such as agriculture and manufacturing.

Reasons Behind Words: OPEC Narratives and the Oil Market

We analyze the content of the Organization of the Petroleum Exporting Countries(OPEC) communications and whether it provides information to the crude oil market. To this end, we derive an empirical strategy which allows us to measure OPEC’s public signal and test whether market participants find it credible. Using Structural Topic Models, we analyze OPEC narratives and identify several topics related to fundamental factors, such as demand, supply, and speculative activity in the crude oil market. Importantly, we find that OPEC communication reduces oil price volatility and prompts market participants to rebalance their positions. Our analysis indicates that market participants assess OPEC communications as providing an important signal to the crude oil market.

A Survey of Literature on the Interlinkage between Petroleum Prices and Equity Markets

The multifaceted interrelationship between petroleum prices and equity markets has been a subject of immense interest. The current paper offers an extensive review of a plethora of empirical studies in this strand of literature. By scrutinising over 190 papers published from 1983 to 2023, our survey reveals various research themes and points to diverse findings that are sector- and country-specific and contingent on employed methodologies, data frequencies, and time horizons. More precisely, petroleum price changes and shocks exert direct or indirect effects dictated by the level of petroleum dependency across sectors and the country’s position as a net petroleum exporter or importer. The interlinkages tend to display a time-varying nature and sensitivity to major market events. In addition, volatility is not solely spilled from petroleum to equity markets; it is also observed to transmit in the reverse direction. The importance of incorporating asymmetries is documented. Lastly, the summarised findings can serve as the basis for further research and reveal valuable insights to market participants.

Analysis of the relationship between the profitability of market portfolios and the profitability of shares of companies in the oil sector

Purpose: This article aims to elucidate whether the particularity of the high level of explanation of the relationship between the return on the market and the return on shares of companies in the oil sector in Brazil occurs similarly in other markets.
 Methodology: The oil companies considered were listed as the main ones by Forbes, Fortune and Exame magazines. Their shares and market movement were obtained from their respective host countries stock exchanges, and other information on institutional websites (e.g: OPEC - Organization of the Petroleum Exporting Countries). As theoretical support, CAPM and APT metrics were applied between from January 2, 2015, to March 31, 2021.
 Results: Considering the privileged position of the fuel sector for the movement of the level of economic activity of the countries, the result of this research confirmed that the particularity of the Brazilian scenario is observed in other countries with regard to the high level of explanation of the return of the superior market portfolio at 50%. The research observed that the Explanation Coefficient tends to capture in a more significant way the effects of crises that come from local economic contexts and impacts on the world economy, such as a possible reduction in the level of gross domestic product of countries such as the United States or China. As for the unexpected event, such as Covid-19, the model, in principle, did not present the same result, which could be observed in the quarterly analyses.
 Contributions of the Study: Research can help managers and investors, as by demonstrating similarities one can predict future events or assist in decision-making.

What drives OPEC production policy?

Abstract The Organization of Petroleum Exporting Countries (OPEC) is the international organization with the function of coordinating and unifying the petroleum policies of its member countries. It centrally controls much of the world’s oil supply. While this is generally accepted, it is not well understood how OPEC exercises this broad function, what drives its decision-making. The article closes this gap in the literature through a close study of the published OPEC production policies for the period of 2019–2022. The article finds that internally predicted demand was the primary driver, over external factors that could also have affected production decisions, such as sanctions on OPEC or OPEC+ members, the rise of US shale oil, or climate change mitigation. It follows that consumer states can most effectively influence OPEC petroleum production decision-making by reducing their own oil consumption. The article finally places these findings into a broader context of the law of international organizations, where organizations have a responsibility to exercise their functions within evolving international law. Their decision-making can then be assessed through the three vector-matrix that this article proposes, comprising internal drivers, external factors, and the position of third states.

Petroleum Export Performance in India: Analysis of Growth and Structural Dynamics

The Indian economy has experienced significant changes in its export structure, especially after adopting the export promotion outward-oriented development strategy in 1991. Petroleum exports have experienced a sudden rise, especially in the first decade of the 21st century, and became the second-largest export item in India after engineering products. The study examined the growth and structural dynamics of petroleum export performance in India during 1990-2019. It was found that petroleum product exports in India grew outstandingly during the study period, registering higher growth than imports and the production of these products. India outperformed the world and the majority of giant petroleum exporters in the global export market. The findings also confirmed the high degree of diversification in the composition and direction of petroleum exports. Petroleum trade in India also witnessed a high degree of intra-industry trade. Favourable government policies have contributed to the occurrence of this phenomenon. Consequently, India has become one of the leading petroleum product exporters despite its lack of global crude oil and refining technology. The existence of growth instability in these exports requires effective intervention at the policy level.

Flare-to-hydrogen in oil and gas industries: Techno-economic feasibility of a net-negative alternative

Gas flaring causes economic losses and energy wastage and is responsible for 1.5 % of the total industrial greenhouse gas (GHG) emissions. However, the increasing role of low-carbon hydrogen in the energy sector has led to innovative approaches for utilizing flare gas (FG). This study proposed a net-negative and self-sufficient multigeneration system for converting FG into hydrogen and deploying captured CO2 for enhanced oil recovery (EOR). In addition, a comprehensive global comparative analysis for the three FG-to-hydrogen production scenarios was performed to address the impact of CO2 emission policies: autothermal reforming with CO2 capture (AACP), autothermal reforming with CO2 capture and EOR utilization (AACPE), and autothermal reforming. The results showed that the AACPE scenario is a promising carbon-reduction alternative, producing 1.31 $/kg and 3.09 kgCO2/kg H2 GHG emission. The deployment of this system results in a 72 % CO2 capture rate. The sensitivity analysis showed that carbon tax policies exceeding 86.2 $/ton CO2 encourage the adoption of carbon-capturing (CC) modules for hydrogen production. Furthermore, because of the flare availability and low energy prices, countries with abundant fossil fuel reserves are particularly well-suited for AACPE implementation. Deploying AACPE in the Organization of the Petroleum Exporting Countries-plus regions could significantly reduce carbon emissions by up to 138.72 Mton/year while generating 12.62 Mton/year of hydrogen at an average cost of 0.94 $/kg H2. The widespread use of flare-to-hydrogen systems is expected to help mitigate anthropogenic climate change. However, further studies are essential to explore the industrial feasibility of the plan.