We are now celebrating 50 years of oil and gas activities in Norway. We have much to be proud of—and we're still only half-way.
Although the oil industry is in a challenging period, we have never had a larger portfolio of projects than we do today. We have major ambitions for the Norwegian continental shelf and there will be a high level of activity for many decades to come. The old giants on the continental shelf will be joined by new installations, such as Gudrun, Valemon and Åsgard subsea compression. And soon Gina Krog, Aasta Hansteen and Johan Sverdrup will be entering production.
We believe it's possible to maintain profitable and sustainable production at current levels on the Norwegian continental shelf until 2030 and beyond. By increasing extraction and prolonging the lifetime of fields in operation, we'll be well positioned for another 40 years on the Norwegian continental shelf.
The leading operator on the NCS
We currently operate 42 fields on the Norwegian continental shelf and produce around 2.5 million barrels a day, including the volumes from our partners.For more than 40 years, Statoil has accumulated broad expertise, which we will use to further develop the Norwegian continental shelf. We know the geology, the fields and what is required to succeed. This expertise enables us to manage values responsibly, so that we can secure jobs and value creation for years to come.
Our fields consist of everything from small fast-track projects to giants like Troll, Statfjord and Gullfaks. In our view, the Norwegian continental shelf is one of the most exciting places to explore. The Norwegian continental shelf delivers consistently good results, and we believe there is great potential for finding more oil and gas—in new areas, in already opened areas and, not least, near infrastructure that has already been built.
The oil and gas industry on the Norwegian continental shelf is a hotbed of technological development and innovation. Many technologies that are at the cutting edge internationally today had their breakthroughs on the Norwegian continental shelf. Together with the supplier industry, partners, research institutions and Norwegian authorities, we have created a culture for solving challenges and finding solutions. This is a mentality we will take with us into the future.
The next chapter on the Norwegian continental shelf
When we first found oil in the North Sea, few people realised the values and growth it would bring to Norway. Today, another new chapter in the Norwegian oil adventure is about to be written.
Facts and figures
We have more than 40 projects in the implementation phase
We intend to maintain production at current levels until 2030
Norwegian oil and gas in a low-carbon society
Man-made climate change is one of the greatest challenges of our age. As a producer of oil and gas, Statoil is both part of the problem and part of the solution. Oil and gas will be key components of the energy supply in the future, which imposes a great responsibility on us as producers. Our clear ambition is to be a world leader in terms of carbon efficiency.
Our analyses indicate that the world will need significant amounts of oil and gas even in the two-degree scenario, the global climate target. Oil and gas in volumes equivalent to the volumes produced today will also be necessary in 2040. Production from current fields is falling every year. This means that the world must find and put into production as many as 50–60 million new barrels in 2040. This is the equivalent of five times the current production of Saudi Arabia, or 100 new Johan Sverdrup fields. This is a formidable task in itself, and considering the climate issue, how these volumes are produced is very important.
Norway has a long tradition of working systematically to reduce emissions, and our current CO2 emissions are approximately half the industry average. We are also working hard to maintain our leading position. In 2008, we set ambitious goals for reducing emissions by 2020—goals that we have already reached. We have therefore increased our goal by 50 per cent to 1.2 million tonnes by 2020—equivalent to the emissions from 750,000 cars.
We will continue to work on reducing emissions to ensure that Norwegian oil and gas remain important contributors to the world reaching its climate and energy targets. We intend to be part of the solution for the production of energy for the world in a climate-friendly way.
What future for Norway’s largest industry?
The petroleum industry is Norway's largest industry when measured in value creation, state income, investments and export value. Total income from the sector amounted to NOK 219 billion in 2015, representing 20 per cent of the state's combined income.
The modern oil adventure: Johan Sverdrup
Nearly 130 years after the Norwegian Prime Minister Johan Sverdrup became known as the father of Norwegian parliamentarism, his name was linked to the largest Norwegian oil discovery in recent times. Johan Sverdrup was found in some of the first licences awarded on the Norwegian continental shelf. With its 1.7–3.0 billion barrels of oil, the field is one of the largest and most important oil finds globally in the past decade. At plateau, the field will be responsible for around 40 per cent of oil production on the Norwegian continental shelf, and it is considered a giant field.
Johan Sverdrup is probably Norway's largest and most important industrial development project for the coming decades.
- The first phase of development can provide 51,000 man-years in Norway. Of these, 22,000 FTEs are anticipated among suppliers in Norway and about 12,000 man-years are anticipated for their subcontractors
- In the operational phase, estimates show that an average year will generate 2,700 man-years and during the full field development 3,400 man-years will be generated
- Experience from the operation of fields suggests that around 90 per cent of operational activities may devolve on the Norwegian supply industry
- The Norwegian supply industry may achieve more than 50 per cent of the assignments during the construction phase, and around 90 per cent in the operational phase
- Total production revenue may reach NOK 1,350 billion over 50 years
- Of this, corporate taxes alone can provide the Norwegian Government with NOK 670 billion in direct income.
- The total investments for the first phase of development is estimated at NOK 117 billion (2015 kroner), and the estimated production in the area is 315,000–380,000 barrels of oil equivalents a day.
- Depending on future choices of capacity and technical solutions, this suggests an early estimate of investments of NOK 170–220 billion for a full development with a daily production in the area of 550,000–650,000 barrels of oil equivalents a day.
Status of the project development:
- The final approval for the PDO was given on 20 August 2015.
- In 2015, contracts were awarded for Johan Sverdrup to a value of more than NOK 50 billion. Suppliers with Norwegian invoicing addresses secured about 75 per cent of the contracts.