Transcript Document

Energy and environment in the Arctic
– dilemmas and opportunities
Egil Myklebust
Utforsking Norge
The Norwegian
2006-12-14
Academy of Science and Letters
Oslo, January 25, 2007
The global energy
dilemma

Fighting poverty requires
more energy

Access to hydrocarbons
becoming more challenging

Greenhouse gases and
climate change derives from
burning hydrocarbons

Challenge: Producing more
energy with less damage to
the environment
OHa • Dato: 2006-12-14 • Side: 2 •
Untapped petroleum resources in the north
compared to total global resources
25% of the world’s
undiscovered petroleum
potential may be in the
Arctic
Rest of
North Africa the world
Caspian Sea
Middle-East
The Arctic
1: Barents Sea
2: South Kara Sea and West Siberia
3: North Kara Sea
4: Laptev Sea
5: East Siberian Sea
6: Chuchi Sea
7: Alaska North Slope
8: East Greenland
Source: U.S. Geological Survey
OHa • Dato: 2006-12-14 • Side: 3 •
Potential resources on the shelf
Barents Sea
990 mill Sm3 o.e.
Undiscovered resources in
different parts of the
Norwegian continental shelf
Norwegian
Sea
Norskehavet
Barents Sea
Barentshavet
29 %
36 %
Norwegian Sea
1220 mill Sm3 o.e.
North
Sea
Nordsjøen
35 %
North Sea
1190 mill Sm3 o.e.
Source: Norwegian Petroleum Directorate
OHa • Dato: 2006-12-14 • Side: 4 •
Successes and disappointments
in the Barents Sea
Technical resources / wells per year
1600
Snøhvit
First
drilling
7
63 exploration wells drilled
Snøhvit developed
Goliat possible development
1400
6
1200
Goliat
Barents Sea
project
600
5
4
800
3
OHa • Dato: 2006-12-14 • Side: 5 •
20
04
20
02
20
00
19
98
19
96
19
94
19
92
0
19
90
0
19
88
1
19
86
200
19
84
2
19
82
400
19
80
Mboe
ULB
1000
8
Wells per year
1800
Challenge: The environment

Tough climate and formation of ice

Ecosystems with high production in short periods and organisms
with high dependence on storage of fat as energy

Large and important commercial fish stocks and large stocks of
seabirds and marine mammals

Receiving high levels of far-reaching pollution
OHa • Dato: 2006-12-14 • Side: 6 •
Challenge: Operational

Transportation over long distances

Impact from low temperatures, formation of ice and limited daylight
-
Daily operations
Oil-spill preparedness

Lack of infrastructure

Co-existence with existing industries
-
In some areas considerations of natives
OHa • Dato: 2006-12-14 • Side: 7 •
Challenge: Reputation, ”licence to operate”
How to get acceptance for and convince stakeholders that the petroleum
industry can operate in a sustianable manner…
-
requires broad stakeholders dialog
requires proactivity rather than letting time go by
…in an area that
-
-
is conceived as an icon for pure and undisturbed nature
has important natural resources
has fisheries with international importance
has a challenging climate
OHa • Dato: 2006-12-14 • Side: 8 •
New environmental standards in the north

The most environmentally sound drilling
operations take place on the Norwegian shelf

Develop and apply new technologies and
conceptual solutions
Substitute environmentally depriving
substances
Comply with zero-emission conditions


OHa • Dato: 2006-12-14 • Side: 9 •
Emissions to air from Norwegian and
international petroleum industry. 2005
Kilo emissions per ton oil equivalents produced (for CO2 unit for emission 100 kilo)
Carbon dioxide
(CO2)
Nitrogen oxide
(NOx)
Norwegian Continental Shelf
Methane
(CH4)
Volatile organic Sulphur dioxide
(SO2)
compounds,
except Methane
(VOC)
International average for oil-producing countries
Sources: OGP / OLF
OHa • Dato: 2006-12-14 • Side: 10 •
From Ekofisk to Ormen Lange

Crossed the Norwegian trench

Horizontal exploitation
Kilometre deep waters, extreme seabed conditions, wind, waves,
strong currents and submarine ice formation
The world’s longest subsea gas pipeline
Snøhvit



OHa • Dato: 2006-12-14 • Side: 11 •
Excellence by experience

The undiscovered resources will be explored and utilized –
independent of Norwegian decisions

There is always a demand for the best technology and
competence

Those who do it a lot, do it best
OHa • Dato: 2006-12-14 • Side: 12 •
Public interests in the North

Norway as an innovator of technology requires continued activity

Business, work and optimism good for Northern Norway

Territorial integrity strengthened by activity

In control of Norwegian territory

Russian territory very much a Russian territory
OHa • Dato: 2006-12-14 • Side: 13 •
Summing up

Norwegian petroleum expertise will enhance quality and
responsibility in the Arctic

Activity and continuity fundamental for Norwegian leadership

Insignificant inconvenience for existing industries and no
better place to develop sound environmental solutions

National and multinational cooperation important
OHa • Dato: 2006-12-14 • Side: 14 •