Flaring is more cost effective at current prices
- Methane is 28x more potent as a greenhouse gas than CO2 is. I'm rusty on my chemistry but it seems like CH4 + 2 O2 => CO2 + 2 H2O, so by flaring it you're getting a 28x reduction in GHG potential even though it looks bad seeing it burning like that.
- The infrastructure isn't in place to harvest, liquify, and transport methane from oil fields. Oil itself is relatively easy to transport away from oil fields to refineries, while natural gas needs near-site processing to turn it into a liquid and keep it compressed. You also would need to build out (smaller) pipelines to transport it from the oil field to the existing natural gas handling infrastructure which may not be nearby.
It's one of those things where it's basically free coming out of the well but a big investment would be required to capture it and, assuming you're going to be pulling the oil out anyway, burning it is better for the environment than just venting it.
Edit: I do recall recently reading about some tech though where they were going to start using it on-site for fuel for equipment. I think it was for on-site generators instead of using electricity from the grid, but I don't have a link handy.
https://www.crusoe.ai/blog/turning-waste-into-power-crusoes-...
"Copper nanoclusters: Selective CO2 to methane conversion beyond 1 A/cm²" (2024) https://www.sciencedirect.com/science/article/pii/S092633732...
From what I know it is just cheaper to flare natural gas that occurs as byproduct of oil production than to deal with it otherwise.
In general, starting from methane you can then work your way up to all sorts of various hydrocarbons like gasoline or jet fuel.
Methane is also the propellant of SpaceX's Starship. If they launch as frequently as they want to launch, Elon will likely invest in local zero-carbon production of methane using techniques like the OP.
Is there demand for methane? Why are there so many methane flares at oil wells in Texas, then?
At the rate solar, wind, and batteries are coming along, carbon capture is a waste of time and resources. Price alone is going to eliminate most demand for carbon based fuels. This is happening much faster than expected. See last week's Economist.