Why are we continuing with oil and gas? Here are two of the reasons.

New discoveries are important

They had indications that there could be gas in this geological structure several years ago – and ever since the licence was awarded in 2020, they have been working intensely on the project.

“Not everyone believed we would find anything. It’s really hard to find more gas – since most of the large structures have already been drilled. But with new data and methods, we can make new discoveries in complex deepwater areas like this,” explains petro-physicist Zoë Cumberpatch.

Obelix Upflank was discovered in near-field exploration – that is, exploration near existing infrastructure. Near-field discoveries don’t need to be so large to be profitable, and can quickly be put into production with lower CO₂ emissions and a shorter payback period. 80 percent of Equinor’s exploration is near-field, while 20 percent is aimed at testing new ideas or takes place in less explored areas awarded through licencing rounds.

“Production on the Norwegian continental shelf is decreasing in the longer term, and exploration is critical to mitigate this decline,” explains Kristensen.

Continuously decreasing emissions from production

In addition, there are significant differences in the emissions from production of oil and gas, depending on where in the world they are produced. Norwegian oil and gas production has considerably lower emissions than the global average – and it’s getting lower all the time.

In December 2022, when phase 2 of the Johan Sverdrup oil field in the North Sea started production, its emissions were 95 percent lower than the global average.

Our ambition is that by 2030, we will have halved greenhouse gas emissions from our own fields.

“This will be achieved through a series of large and small energy efficiency measures on the platforms, by optimising the use of existing installations, and by shutting down certain installations. But the most effective measure is to replace the gas-powered turbines on the platforms with renewable electricity from shore,” says Aamodt.

In this way, we can reduce emissions by a total of 5 million tons of CO₂ per year – which is equivalent to almost 10 percent of Norway’s annual emissions, resulting in a 70 percent reduction in emissions by 2040 and net zero emissions by 2050.

Here’s why electrifying platforms is an important climate measure

The electrification of major point sources of emissions such as offshore installations is a topic of debate – and is sometimes referred to as ‘symbolic politics’ by critics, arguing that when gas is not used on the installations, it will simply be used by customers instead.

This isn’t correct, says Camilla Aamodt.

“It’s like when you buy an electric car: Even though petrol is still available in the market, emissions from your own car journeys are eliminated.”

This is confirmed by a report from Thema Consulting Group, which states that electrification of Norwegian oil platforms also has global benefits. They also note that Norway will not achieve its climate goals without electrifying field centres and processing facilities with high emissions and long lifespans.

Currently, a project is underway to maintain production and extend the life of the gas plant at Melkøya, also known as Hammerfest LNG. The Snøhvit partners are investing 13.2 billion Norwegian kroner in the upgrade with compression and electrification on shore. The project has significant ripple effects and creates jobs in Finnmark, Northern Norway, and nationally. Electrification reduces CO₂ emissions from the plant by some 850,000 tons annually. In addition, the Snøhvit Future project, of which electrification is a part, will ensure long-term operation and exports from Melkøya until 2050.

There has been, and continues to be, a lot of debate around the project. Aamodt emphasises that the government’s precondition for electrifying Melkøya is that more power must also be developed in Finnmark, so that the region as a whole receives a boost in power and industry.

“Melkøya is one of the largest point sources of emissions in Norway, making this a climate measure of real significance. At the same time, we understand that this is a difficult and complex matter – and now it’s about ensuring that the development proceeds in the best possible way.”

Constantly searching for better solutions

Aamodt points out that the world depends on a variety of measures to achieve climate goals.

“We must use all the tools in the toolbox. Collaboration between countries, governments, businesses, and society is absolutely essential to achieve the goal of net-zero emissions by 2050. We are fully committed to exploring and finding solutions to get closer to the goal.”