2 011 henry bacon seminar statoil’s perspective on the high north/arctic
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2 011 Henry Bacon Seminar Statoil’s perspective on the High North/Arctic. Hans M. Gjennestad, Senior Strategy Advisor; Development and Production Norway May the 3 rd 2011, Washington DC. Norway and the High North Our point of departure. Snøhvit. Stavanger. Snøhvit. Melkøya. Statfjord. - PowerPoint PPT PresentationTRANSCRIPT
2011 Henry Bacon SeminarStatoil’s perspective on the High North/Arctic
Hans M. Gjennestad, Senior Strategy Advisor;
Development and Production Norway
May the 3rd 2011, Washington DC
Stavanger
Norway and the High NorthOur point of departure
Snøhvit
Norwegian Continental ShelfThe first step – 1985Norwegian Continental ShelfThe second step - 1996Norwegian Continental ShelfThe third step - 2000Norwegian Continental ShelfThe fourth step – 2006/7Norwegian Continental ShelfStatus 1979Key learnings
What seems impossible can be done
… and create significant value
Present status
• 4 mill boe/d export
• 3500 BCF/Y gas to Europe
StatfjordStatpipeTrollSnøhvit
Statfjord Nyhamna
Europipe II
Europipe I
Norpipe
Emden/Dornum
Teesside
ÅTS
Norne
Åsgard
Haltenpipe
Heidrun
Franpipe
Zeebrügge
Zeepipe I
St Fergus
Vesterled
Frigg
Kårstø
Kollsnes
Melkøya
Snøhvit
Ormen Lange
Easington
Langeled
Ekofisk
Sleipner
Troll
Dunkerque
Åsgard
Norwegian Continental ShelfOpportunities and challenges
0
1
2
3
4
2010 2015 2020 2025 2030
mill
boep
d
Reserves from fields in production Resources in f ields
Resources in discoveries Undiscovered resources
Opportunities
• Undeveloped reserves/Yet to find potential
Main challenges
• Maturing portfolio
• Many, but smaller new developments
Ambition towards 2020
• Maintain present production level
Towards 2030
• Need access to large scale acreage
• Political choices define future
Operational efficiency
Industrialisation and prioritisation
Access to new acreage
Gas in Europe Industrial reality towards 2030
“Gas fundamental to• Europe's energy security• Europe's economy and • Battle on climate change.”
Former Energy Commissioner Former Energy Commissioner Andris PiebalgsAndris Piebalgs
Felipe Gonzalez,
Chair of reflection Group, Project Europe 2030: Challenges and
OpportunitiesThe EU should grow its gas
production
• open new frontiers,
• remove licensing barriers,
• allow investments in frontier areas, such as the Arctic.
0
200
400
600
800
2007 2012 2017 2022 2027
4% natural decline illustration Demand - IEA Ref scenario
Demand - IEA 450 Scenario
Bill
ion
Sm
3 /Y
ea
r
European gas demand
Supply – present fields
Gap 8,7 TCF/y
18,6 TCF/y
•Licence awards/exploration drilling since 1980
–81 exploration wells
–27 active exploration and production companies
– 20 years of safe operations
•Major field developments
–Snøhvit Liquefied Natural Gas (Statoil)
–Goliat oil field (Eni)
•Recent oil discovery
–Skrugard
=> A new production region in the Arctic
The High North/ArcticExperience and way forward
Full subsea field/remote operationRecord-distance multiphase flowCO2 sequestration and storagePath breaking LNG technology
Zero surface solutions – from subsea to the beach
Snøhvit – technology for the ArcticA benchmark project for offshore and LNG technology
Norwegian/Russian agreementPotential implications
•For the Arctic region
– A new step in offshore oil/gas
•For Europe
– A new option for long term supply
•For Russia
– A new “less challenging” upstream region
•For Statoil
– A new “multifaceted” opportunity set
The ArcticLong-term perspective in the Arctic
•Norway moves from the South to the North
•Russia moves from the South to the North
•Significant resource potential along these development lines
→ The High North - a natural meeting area for long term co-operation.
Statoil’s Arctic positionsThe way forward
•Statoil positions
– Barents Sea
– Greenland – East/West
– Canada – Grand Banks
– Alaska – Chukchi Sea
•Key success factors in the Arctic
– Safety and public trust
– Solid sub surface knowledge
– Stamina
– Step wise development
Thank you
Oslo
Washington DC
The opportunities
Snøhvit
The Arctic The Statoil Perspective
The High North – Arctic
• A new energy region
• A source for long term energy supply.
• The NCS competence – excellent starting point
The Arctic for Norway
• A unique energy opportunity
• Further development of the national competence capital
• A driving force for regional value creation