We’ll continue to explore for oil and gas. Huh?

We’ll continue to explore for oil and gas.
Huh?

Oil and gas activities are the largest source of greenhouse gas emissions in Norway, and we intend to continue to explore for oil and gas. Irresponsible, some might say. The way we see it, it’s the responsible thing to do. Why? We’ll get to that now.

We have to start at the beginning – the world’s need for energy. What we know for sure is that demand is growing. And the renewable energy being developed today is not enough to cover the increase. Even the most optimistic forecasts say that the world will still need oil and gas for several decades to come. And we are a part of this.

Nearly all the oil and gas produced on the NCS goes to Europe, and European authorities are also crystal clear: They’ll be needing Norwegian energy for a long time. Norway is essential for European energy security; today we supply energy to around 170 million people.

I get it, but why do you insist on continuing exploration for oil and gas? Well, we do that because if we don’t make new discoveries, we won’t be able to deliver the energy Europe needs. The reason for that is that several of our fields will be depleted over time. If we are to continue to deliver the energy Europe is asking for, we must continue to explore for oil and gas in the years to come. And we have to do so in the best way we know how. That’s why 80% of the exploration will take place near existing fields. Here we have the infrastructure in place, which means we can quickly tie in new discoveries to the ones we’ve already developed. That means we can develop the discoveries cheaper, faster and with lower emissions from production.

But we’re not just searching for oil and gas. We’re also searching for better ways to produce them. That’s something we need to do in order to achieve our own emission ambitions and help Norway achieve theirs. Because, while we work to maintain high production, we are also working to cut emissions from production in half by 2030, and to continue to push on towards zero in 2050. Our production must be accomplished with the lowest possible emissions.

How are we going to manage that? That’s where electrification comes in. It’s a way of producing oil and gas with lower emissions, and an important key to make major emission cuts in Norway.

We know there’s still a long way to go, but we continue to search for better ways. And better ways obviously include renewable energy like offshore wind and solar power, but they also include oil and gas. There’s no way around it. If we want to be a pioneering company in the energy transition, create values while also delivering the energy Europe needs, we have a daunting task ahead. But daunting tasks have never stopped us before, and they won’t stop us now.

Ready for the next phase

When he was young, it was the sea, technical challenges, and electronics that fascinated Thomas. So it was no surprise that he felt it was a perfect match when he became an electrician on Johan Castberg, our newest production ship.
For six years, he has followed the construction of the ship, which will play an important role in ensuring stable and reliable energy supply to Europe for many years to come.

Cutting emissions with artificial intelligence

One of those working on new solutions is Olav. He and a team of smart minds aim to improve the operation of our facilities using artificial intelligence: IQ meets AI to cut CO₂.

Is it possible to lead in the energy transition, and still explore for more oil and gas?

Troll in the North Sea is Norway’s largest gas field. The gas from Troll alone covers around 10% of Europe’s needs, and the energy produced by Troll corresponds to around three times the annual Norwegian hydropower production.

In other words, Troll is an important piece of the puzzle for Europe’s energy security. And, thanks to electrification, Troll has significantly lower emissions than other fields. Troll A was electrified almost 30 years ago, as the first platform on the Norwegian continental shelf (NCS). This allowed us to avoid half-a-million tonnes of CO₂ emissions every year, which corresponds to one per cent of Norway’s total emissions.

Searching for better

We have to change. Society has to change. And the world must change. That’s what it will take to achieve success in the energy transition the world desperately needs. And there’s no time to waste if we also want to be the leading company in this transition, which is our goal. Does that mean we face an uphill climb in the years to come? Certainly, but this is the most important task we face.