statoil’s industrial response to the energy and climate challenges
DESCRIPTION
Øystein Michelsen Executive Vice President, Statoil - Brief presentation of Statoil - Energy realities and climate change challenge and Statoil’s response - Our ambition to keep maintain export of - CO2 efficient energy until 2020 - The need for action today from the industry, supplier industry and regulators to sustain productionTRANSCRIPT
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Statoil’s industrial response to the energy and climate challenges
Øystein Michelsen Executive Vice President, Statoil
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• Energy company present in 40 countries with 30,000 employees
• Producing 1.95 million barrel of oil equivalent (boe) pr day
• About 22 billion boe in proven resources (5.6 billion as booked reserves)
• One of the world’s largest net sellers of crude oil
• The world's largest operator in waters deeper than 100 metres
• World leader in carbon capture and storage
• The second largest exporter of gas to Europe
• Largest retailer of oil products in Scandinavia
• Over 16 billion € in yearly group procurement
Statoil in brief
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Striking the right balance Energy realities
Climate challenge
Global leadership
Statoil’s industrial response Low carbon production
Carbon capture and storage
New energy Energy supply
0
40
80
120
2001 2005 2009 2013
Economic development
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CO2 efficient and attractive energy
Break even gas prices in power generation (no CO2 cost)
$10/MMbtu $11/MMbtu
$15/MMbtu
Source: IEA
Climate gas emissions - kg CO2 equivalent per barrel of oil equivalent
Norway Europe Russia Africa Middle East
Global average:
Gas Coal Nuclear Wind
Investment Operation Fuel
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Norway - an important supplier of energy
Norway in the oil market
Source: BP Statistical Review of World Energy 2007.
Norway in the gas market
Net export (mb/d) Reserves (bn bbl) Net export (bcm/year) Reserves (tcm)
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Statoil’s ambition: maintain the production level
Map source: Norwegian Petroleum Directorate.
Stilised production profile
Early phase projects Fields under development Fields in production
Access to new acreage needed to sustain production beyond 2020
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Large remaining potential
North Sea
Norwegian Sea
Barents Sea
Undiscovered Produced Contingent resources in field and discoveries Remaining reserves
Source: Fact sheet, Ministry of Petroleum and Energy
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alternatives
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From pioneering to industrialsation
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The European Gas perspective
Main supply routes to Europe
Norway
Russia
Algeria
Pipeline
LNG
• Europe – in a fortunate position on gas
• IEA report on natural decline rates (Nov 2009)
– 50% reduction in global capacity by 2030
• Implication for Europe – need 250 BCM/y of new capacity by 2030
• Long term security of gas will require – Timely investment in new capacity – Access to new exploration acreage
• Long lead times – Action needed now for 2020-25 supply
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12 Statoil Group Procurement 2009
Top 10 Countries Spend based on suppliers’ invoice address
Total Spend 2008: BNOK 121,4 Total Spend 2009: BNOK 129,8
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The economy is picking up speed, but…
Economic growth forecast by key country/region
Oil price 2001-2015 Brent blend, USD/bbl
Source: IHS Global Insight Source: Statoil
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Weak market fundamentals
Competitive energy source
Fuel for the future
Gas: Bridging troubled waters
Source: Statoil
Short-term gas prices UK NBP, GB pence per British thermal unit
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Statoil on the Norwegian Continental Shelf Exploration and production Norway
Florø
Stavanger
Bergen/Mongstad
Hammerfest
Kristiansund
Stjørdal
Brønnøysund
Sandnessjøen
Harstad
• Statfjord
• Oseberg
• Gullfaks
• Snorre
• Norne
• Heidrun
• Åsgard
• Kristin
• Njord
• Troll
• Kvitebjørn
• Visund
• Grane
• Sleipner
• Volve
• Draupner
• Marginal fields
Operations
North
Operations
North Sea
Operations West
Our strategy: Safe and efficient operations Maximise the potential
• Snøhvit
Offhore installations 34
Mobile rigs 18
Vessels 50
Helicoptres 22
Chartered planes 2
Helicopter bases 6
Supply bases 7
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NCS - Great achievements in short time
• Consolidated two large organisations
• Production delivery confidence
• Positive HSE trend, with some setbacks
• 300 kboe/d in new production capacity
• 70 kboe/day to be put onstream 2010
• 4 PDOs
• Successful exploration
– 60 discoveries, 70 % success rate
• IOR reserve growth: 431 mill boe
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NCS - Great achievements in short time
• Consolidated two large organisations
• Production delivery confidence
• Positive HSE trend, with some setbacks
• 300 kboe/d in new production capacity
• 70 kboe/day to be put onstream 2010
• 4 PDOs
• Successful exploration
– 60 discoveries, 70 % success rate
• IOR reserve growth: 431 mill boe
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An industry that makes a difference A significant role in the Norwegian economy
Macroeconomic key figures 2008 Oil and gas share in…
Source: Statistics Norway, Ministry of Finance
Government revenue:
36 per cent
Gross domestic product
25 per cent
Total export:
51 per cent
Real investment spending
24 per cent
In 2009, total NCS investment amount to 40 opera houses
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Major contributor to society From oil and gas to wealth and welfare
Government Petroleum Fund - Global Total capital, NOK bn
Source: Norges Bank, OECD.
Per capita GDP USD index, 2006 (USA = 100)
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Norwegian Continental Shelf The first step – 1985 Norwegian Continental Shelf The second step - 1996 Norwegian Continental Shelf The third step - 2000 Norwegian Continental Shelf The fourth step – 2006/7 Norwegian Continental Shelf Status 1979
Key learnings
• What seems impossible can be done
• … and create significant value
Statfjord Statpipe Troll Snøhvit
Statfjord Nyhamna
Europipe II Europipe I
Norpipe
Emden
Teesside
ÅTS
Norne
Åsgard
Haltenpipe
Heidrun
Franpipe
Zeebrugge
Zeepipe I
St Fergus
Vesterled
Frigg
Kårstø
Kollsnes
Melkøya
Snøhvit
Ormen Lange
Easington
Langeled
Ekofisk
Sleipner
Troll
Dunkirk
Åsgard
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Arctic resources and Statoil’s offshore positions
• Chuckhi Sea (US Alaska)
• Barents Sea (Norway / Russia)
• East Greenland
• Newfoundland (Canada)
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The Barents Sea
• Vast area
– 1.4 Million square kilometres
• Licence awards and consecutive exploration drilling since 1980
– 81 exploration wells
– 27 active exploration and production companies
• Major field developments
– Snøhvit Liquefied Natural Gas (StatoilHydro)
– Goliat oil field (Eni)