"Climate challenges are becoming ever more dramatic,” says President and CEO Helge Lund. "That means we’ve got to step up the pace of seeking solutions.”
According to the EU, fossil fuel will continue to dominate European energy consumption for many years. The EUs goal is to reduce carbon emissions by 20 per cent by 2020, and the Norwegian government also has high ambitions in this area.
StatoilHydro acknowledges that a link exists between human activity and global warming. The company wants to help find solutions which can contribute to reducing greenhouse gas emissions.
"Nature is sounding a warning, and people would be wise to listen," says Lund.
Helge Lund heads a company which recognises industry’s shared responsibility for solving climate issues, and wants to be part of the solution rather than the problem. He is convinced that solutions can be found to the global climate challenge, and remains unshakeably convinced of the industry’s ability to find creative and sustainable solutions.
He believes that the market produces the best solutions, but a big contribution is also needed from government in the form of a framework which both compels and encourages action.
Has no doubt
"I don’t doubt for a moment that the strongly increased attention paid to global warming will lead to tougher demands on industry, and perhaps especially on the oil and gas companies. We must contribute to finding solutions which can help reduce greenhouse gas emissions. That’s essential for the global environment and important for the confidence we enjoy in the community," says Lund.
The chief executive believes that the solutions must be sought along two lines: one political line with the creation of global frameworks as the central element, and one technological line with innovation as the key word.
Lund is eager to ensure that the company takes the necessary initiatives before it is made to act under compulsion. There are different opinions in the global community about how far developments have gone and how serious the position actually is.
In Lund’s opinion it is not too late to take decisions which can prevent mankind from finding itself with its back against the wall. Solutions to reverse the negative trend are urgently needed. He believes it is crucial to create an understanding of the issues faced.
"Climate change is dramatic and damaging. It challenges us to be innovative as we move into a time when fundamental changes will be needed," he says. He emphasises however that we must not panic, but think constructively and purposefully in order to come up with answers.
Naive approach is useless
A naïve approach to the challenges will be useless. The world’s population is increasing, as are expectations that more people should share in rising prosperity.
"It is not fair that we who live in the rich industrial nations deprive other countries of the opportunity to develop the level of wealth we have enjoyed. Rising global energy consumption also reflects economic growth in new parts of the world. But this requires rapid action to meet the negative effects. However, I’m confident that international players will help to find proactive answers," says Lund.
He believes that putting a global price tag on emissions will have a positive impact. Cost efficiency will then drive the best solutions. For example, international trading in emission credits will not only improve the environment but also provide greater financial freedom of action in countries badly in need of economic growth and development.
However, Helge Lund agrees that it is not enough for the rich countries to buy their way out of the problem by using emission credits. Everyone must contribute to improving the global climate in the time to come.
StatoilHydro has decided to buy emission credits to offset air travel by its employees. While Lund accepts that this contribution is modest, he sees it as signalling a willingness to act and as part of efforts to raise awareness.
"StatoilHydro is a company which has chosen to act. We take an ambitious approach to the need to solve climate problems and develop new energy solutions. Success will definitely not be possible with yesterday’s solutions. Old prescriptions no longer apply. We want to be in the forefront of such areas as carbon capture and storage," he says.
Injecting carbon dioxide below ground in the Sleipner area of the North Sea has attracted international attention, and Lund feels it has earned the company great credibility. People come from all over the world to study the project.
Lund regards Sleipner as an example of projects which will play an important part in the solutions to world environmental and climate problems. The company has transferred its experience from Sleipner to the development of the In Salah field in Algeria and the Snøhvit field on the threshold of the Barents Sea.
Focus on the major greenhouse gas sources
Helge Lund believes that climate strategy should first of all focus on the major greenhouse gas sources. Attacking point emissions would have major impact and symbolic power. The Mongstad refinery complex north of Bergen is a good example of such an emission source.
As an example, he refers to StatoilHydro's plans to build a combined heat and power station with carbon capture at this refinery. The treatment technology is not yet good enough, but technological development efforts have been initiated. This is an important focus area.
Lund believes Mongstad will be a good example of the benefits offered by tackling major point sources of greenhouse gases, and he announces an aggressive strategy to ensure energy efficiency and environmental gains, focusing on three important areas:
"We must enhance the use of the oil and gas sources, improve energy efficiency and achieve considerable reductions in carbon emission."
"With the global population rising, daily energy needs must be met. We must also use such oil resources as those in Canada, but in a way which allows us to meet the future in an acceptable manner. Technology development for heavy crude is still in an early phase. Rapid progress is set to be made in this area over the next few years, including more energy-efficient production and management of carbon emissions. We’ll be involved in this process, applying all the expertise, boldness and experience we possess. We must display both technological creativity and industrial vigour," says CEO Helge Lund.
