Increased export of natural gas to Europe could provide a net cut in total emissions of carbon dioxide to the atmosphere by 90,000,000 tonnes per year - nearly twice Norway's total annual output of CO2. Since most of Europe's electricity is still being generated in coal-fired power stations that emit three times as much carbon dioxide emissions as a modern gas power station, and Europe is actively working to replace coal-fired power stations, the more natural gas we export to Europe, the lower total CO2 emissions will be.
The European Union has set ambitious climate targets in the period leading up until 2020. Twenty percent of the energy that is consumed is to come from renewable sources, CO2 emissions are to be reduced by 20 percent, and energy efficiency is to be increased by 20 percent. Set against such a background, there is a need to increase the use of natural gas at the expense of more polluting energy sources.
In the report Norway as an Energy Nation presented to the Norwegian Minister of Oil and Energy by a consortium of Norwegian industries in 2008, one of the conclusions is that increased gas exports can be Norway's most important contribution to global emissions reductions of greenhouse gases.
The report explains this through a calculation: if the export of natural gas from Norway to Europe increased by 30 billion cubic metres per year, and this gas were used to replace coal power, CO2 emissions would be reduced by approximately 90 million tonnes, or nearly twice of Norway's total emissions per year. Although considered somewhat optimistic, the calculation illustrates the scale of savings in carbon dioxide emissions that are achievable by replacing coal and oil with natural gas. By comparison, the potential for emissions reductions through Norwegian carbon capture and storage amount to some three million tonnes of carbon dioxide per year.
Fossil fuel power production in Europe has increased by approximately 30 percent since 1990. But in the same period, emissions of greenhouse gases from the same production have practically stood still. An important part of the explanation is increased use of gas in the power sector. From 1990 to 2005, the use of gas for power generation increased from about 40 billion standard cubic metres to around 120 billion standard cubic metres annually. Without this tripling in the use of gas, emissions from the power section in Europe would be considerably higher than they are today.
But gas is more than the most environmentally friendly fossil fuel. Its flexibility and availability means that it also makes the perfect partner for renewable energy sources that are variable in output, such as wind power. When the wind blows, wind turbines generate power; when there is a calm, gas power quickly takes over, ensuring continuity of supply. It's a symbiotic relationship that makes renewable sources more viable and can provide a springboard to the future and the low-carbon society.
Energy-efficient operations
Not only is natural gas more environmentally friendly than other fossil fuels when consumed, but our emissions from producing the gas on the Norwegian continental shelf are the lowest in the world - around a third of the world average.
Emissions of greenhouse gases from production on the NCS lie at around a third of the world average for comparable installations and operations, due to a series of initiatives that have been implemented, or are being planned, by StatoilHydro and the rest of the industry to limit CO2-emissions. In sum, these initiatives have contributed to reducing carbon dioxide emissions per produced unit on the Norwegian continental shelf by 19 percent between 1990 and 2005.
Resolving the energy dilemma
StatoilHydro's export of natural gas to Europe will continue to grow in the years to come. Side by side with our business target of continued expansion, we are preparing ourselves for a future where the climate challenge will be ever more central. The ambition is not to be a part of the problem, but part of the solution. It's about developing more environmentally-friendly technology to produce energy in ways that give the lowest possible emissions, and by offering energy which gives the lowest possible emissions when it is consumed.
As a total approach to a global problem, replacing coal and oil with natural gas is probably the single most effective climate initiative that Norway and StatoilHydro can implement in the short and medium term — and the best chance for Europe to meet its climate goals for 2020.
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