Climate: Industry perspectives Hildegunn T Blindheim, director Climate and the Environment

9 billion people in 2050

The challenge of climate and energy Oil and gas

Climate targets and regulations Paris Agreement EU Emission Trading System EU energy security gas EU Road Map 2050 Norwegian regulations EU ETS CO2 tax Flaring regulations Emission and discharge permits Energy efficiency Best Available Techhnology

The Norwegian oil and gas industry is a part of the EU ETS system. Reducing emissions in industry sector by 43 percent within 2030. Norwegian tax on CO2-emissions in place since 1994.

NCS Roadmap launched in Arendalsuka High value creation and low emissions towards 2030 and 2050 Jørn Eggum Fellesforbundet, Frode Alfheim Industri Energi, Klima og miljøminister Vidar Helgesen, Sturla Henriksen (Rederiforbundet), Stein-Lier Hansen (Norsk Industri), Karl Eirik Schøtt-Pedersen (Norsk olje og gass), Gerd Kristiansen (LO-leder), Hildegunn Blindheim (Norsk olje og gass) og vår egen Arne Sigve

NCS Roadmap and Konkraft’s climate report The roadmap is a high-level strategy document with a twofold purpose: Establish ambitions for the industry’s long-term production and value creation on the NCS up to 2030 and 2050 Establish goals and milestones for reduced greenhouse gas emissions up to 2030 and 2050 An action plan for greenhouse gas emission reduction has been prepared as an integrated part of the document The Konkraft Climate Report was launched together with the roadmap during the Arendal week Remaining resource potential sound basis for longevity of NCS operations Strong track record with regards to greenhouse gas emission reduction but need for step-up in ambitions to deliver on climate goals and secure license to operate Backdrop UN’s sustainability goals, COP21 in Paris Climate main pillar of new strategy for Norwegian oil and gas, prepared in 2014 but endorsed early 2015 Joint industry product, launched as a Konkraft product (Norwegian Oil and Gas, Federation of Norwegian Industry, the Shipowners Association and the Norwegian Confederation of Trade Unions (LO)) Aligned with OG21 work (National Strategy for Petroleum related R&D). OG21 strategy process is ongoing and will conclude later this autumn Climate ambitions for 2020 set by Konkraft in 2008 and ambitions have been increased from 1 million tonnes a year in avoided emissions to 1.4 million tonnes

Key roadmap goals and future ambitions Climate: 2.5 million tonnes of avoided CO2 emissions annually Production: Maintain current production level in oil equivalents to 2030 Emission reduction goal is on top of ambition 1,4 mill tonnes CO2 per year within 2020 Ambitions for 2050 Climate: Leading position in emissions per unit produced and substantially reduce relative emissions compared to 2030 Production: Oil recovery rate of 60%

Action plan and follow-up Step changes in emission reduction require technology development, hence a step up of climate related R&D is advised Establishment of a Center of Excellence for Emission Reduction for the Petroleum Sector Proposal to increase public funding by increments of 100 MNOK annually over 10 years and same contributions from the industry Mange spennende teknologier; Brenselsceller, hybridteknologi, kraft fra land, offshore vind koblet med batteriløsninger. Vet ikke hva som blir vinnerne

Follow up Realised emission reductions will be reported annually Evaluation and reassessment of goals and technology development and implementation every 5th year. (Konkraft report will be updated)

Typical areas of emission reduction Low carbon or zero-carbon power supply Power supply from land Energy efficiency in offshore power and heat supply at field or area level LNG or hybrid solutions for supply and support vessels Reduction in emissions from mobile drilling rigs Reduction in emission of short-lived climate pollutants such as methane The future may offer new solutions such as fuel cells, supply from offshore wind-mills combined with batteries hydrogen production offshore/onshore.

Since 1996 Statoil has captured and stored 20 million tonnes of CO2 from natural gas from the Sleipner field and stored it more than 800 meters below the seabed. Foto: Øyvind Hagen, Statoil

Carbon capture and storage

Key takeaways Need for oil and gas also in 2050 for a growing global population This oil and gas will have to be produced with low emissions We produce with low emissions in Norway Lower production of oil and gas in Norway will increase global emissions and have a negative effect on jobs and welfare in Norway Norwegian continental shelf: a technological driver for low- emission solutions Low emission technology on fossil fuel production and use is necessary to meet the climate goals and energy demand.