Statoil achieves climate target two years ahead of schedule

Image: Statoil

Statoil has already achieved its 2015 target of reducing the CO2 emissions from the Norwegian continental shelf by 1.2 million tonnes annually from 2008 to 2020. The reduction equals the emissions from some 600,000 private cars annually, or almost every fourth car on Norwegian roads.

In nine years until September this year Statoil has implemented 228 energy improvement measures within the categories flaring, production processes, gas compressors and gas turbines to achieve its goal.

“It is essential that we take strong and effective actions to meet the challenges associated with man-made climate change and to realize the important goals set in the Paris Agreement. Targeted efforts are therefore underway throughout our business,” Arne Sigve Nylund, executive vice-president, Development and Production Norway, said in a statement.

“The results show that it is possible to achieve ambitious emission reduction targets. Skills, technology and hard work over time pay off, and confirm that the transformation we need must be achieved in cooperation with, not in opposition to the petroleum industry,” Nylund said.

In 2008 the petroleum industry in Norway set a collective energy efficiency goal equivalent to one million tonnes of CO2 per year between 2008 and 2020. Statoil’s share of this was 800,000 tonnes. In 2015, four years ahead of schedule, Statoil achieved that goal, and therefore raised its target by 50 per cent to 1.2 million tonnes the same year.

In August 2016 the petroleum industry, under the direction of the Norwegian Oil and Gas Association, launched an ambition of introducing carbon reduction measures equivalent to another 2.5 million tonnes on the NCS by 2030, compared with 2020. Statoil’s share of this is two million tonnes. “We do not have all of the answers to how to achieve this, but the results we have achieved show that we can find solutions that make this possible,” said Nylund.

Initiatives to cut emissions cover everything from reconstructions or improved operation of gas turbines, gas compressors, pumping installations, reduction of gas to flare, as well as better and smarter fuel consumption for mobile rigs offshore. One of the most effective measures was to reduce emissions from gas to flare, saving 140,000 tonnes of CO2 emissions since 2007.

Norway already produces oil and gas with half of the CO2 emissions per produced unit compared with the global industry average, which Nylund notes provides a competitive advantages for the industry going forward.

Statoil-operated installations on the NCS have an average CO2 intensity of nine kilograms per barrel of produced oil, compared to a global average of 17 kilograms of CO2 per barrel. Its target for 2030 is a carbon intensity of eight kilograms per produced barrel for its global operations.

The cost of CO2 emissions in Norway is around NOK 500 ($80) per tonne (carbon tax and quota). Statoil is paying almost NOK four billion ($632 million) per year in carbon taxes.

Norway has set a goal of achieving climate neutrality by 2030 through a mix of efforts domestically and abroad, as well as of reducing GHG emissions by at least 40 per cent below 1990 levels in 2030 in alignment of the European Union’s target.

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