We are well prepared to operate in the far north. The NCS has served as a laboratory for developing environment-friendly solutions to very challenging problems.
From the start of production on Ekofisk in 1971 until the opening of Ormen Lange and Snøhvit in 2007, the Norwegian petroleum community has developed into a leading world supplier of ever more environment-friendly technology.
An important explanation for this progress is that the NCS has been developed through close collaboration between key government agencies, the oil and gas business and other industries such as fishing. That has made it possible to reach agreement on demanding issues such as area allocation, safety zones, seismic shooting and discharges to the sea.
Stringent requirements set by the authorities have driven technological innovation, which means in turn that production on the NCS is among the least polluting in the world. As the world’s largest deepsea operator and the dominant player on the NCS, we believe we are among the best equipped companies in the industry to begin oil and gas production in far northern waters.
The Norwegian government, politicians and oil industry must go through a long and demanding process before an area of the NCS can be opened for petroleum operations. Detailed rules of the road have been drawn up to ensure that the industry’s interest and other social considerations are balanced against each other and taken into account.
- Before an area is opened for oil and gas operations, their likely environmental and social impact must be assessed.
- When such an opening takes place, the government specifies conditions for such aspects as seasonal adjustments, prohibitions on drilling in oil-bearing strata during sensitive periods, emission standards and emergency response requirements.
- Specific demands are made for all phases of the activity. Seismic surveying must be pursued in cooperation with the fishing authorities and tailored to seasonal fisheries.
- Emission/discharge permits are issued by the Norwegian Pollution Control Authority (SFT), and companies are required to keep full records of all emissions/discharges.
- We have reduced energy consumption per tonne of oil and gas produced to less than half the industry average, and also generate power with efficient gas turbines and extensive use of heat recovery. This means that carbon emissions per unit produced on the NCS are about a third of the industry average on a global basis.
- Our projects to capture carbon dioxide from the wellstream and store it in sub-surface formations are regarded by the European Union and others as an important step towards large-scale carbon capture and storage (CCS) from flue gases in coal- and gas-fired power stations. Such solutions could mean substantial reductions in European carbon emissions.
- We comply with the Norwegian government’s requirement for zero production flaring on the NCS. We participate in the global gas flaring reduction programme (GGFR) led by the World Bank, which commits members to reduce flaring internationally.
- Various studies on transmitting land-generated electricity to installations on the NCS and to land-based plants have drawn mixed conclusions. While it has proved costly to convert older installations to such power supplies, the cost picture has been advantageous in a number of cases if such provision is included in the calculations from the start. By supplying land-generated power to Troll A in the North Sea and the Kollsnes processing plant, and deciding to do the same with the Gjøa development, we are helping to reduce emissions of carbon dioxide and nitrogen oxides from petroleum operations.
- The Tordis separation plant in the North Sea removes sand and water from oil on the seabed instead of on a platform. Since the separated components do not have to be lifted to the surface, this represents an important measure for improving energy efficiency which can extend the producing life of the field. The technology can overcome challenges in areas with a sensitive environment or deep water.
- The Troll B and C platforms in the North Sea were the first to employ a treatment technology which has significantly reduced the oil content in produced water. This takes us a further step towards meeting our target of zero harmful discharges to the sea from petroleum operations on the NCS.
All the examples quoted above illustrate that we are a prime mover and play an active role in developing new and ever more sustainable solutions – even when these carry a cost.