How & why

Fundamental changes are happening in our industry—and faster than ever before. Geopolitical shifts, industry fundamentals, market dynamics and the need for a low carbon future are posing new challenges. Here we explain the reasoning behind our strategic direction.

infographic shapingthefuture

In Statoil, we see these changes as opportunities to shape and improve the energy industry of tomorrow. We aim to set an example for how the oil and gas industry must develop, show leadership and point the way to bolder and better solutions.

CEO ELdar Sætre 2017
Photo: Ole Jørgen Bratland

Eldar Sætre
President and Chief Executive Officer

We are an energy company committed to long term value creation in a low carbon future.

We will maximise and develop the value of our unique NCS position and our international oil and gas business, focusing on safety, cost and carbon efficiency.

We expect 15-20% of our investments to be directed towards new energy solutions by 2030.

We are a values based company where empowered people collaborate to shape the future of energy.

illustration of Statoil strategy

We strive to be recognised as an industry leader in safety, and we believe that accidents and incidents related to people, environment and assets can be prevented. Our vision is zero harm.

We focus on preventing personal injuries and major accidents, and the goal of zero injuries has become part of how we think and work, with a strong focus on continuous improvement. The safety standards we have today build on experiences and incidents from the major operations and projects we have carried out over the last 40 years.

We will actively shape our portfolio to deliver high value with a low carbon footprint. These principles guide us as we form a Statoil portfolio that remains fit for the future towards 2030 and beyond

Cash generation capacity at all times

Capex flexibility

Capture value from cycles

Low-carbon advantage

We believe a low carbon footprint will make us more competitive in the future. We also believe there are attractive business opportunities in the transition to a low carbon economy.

Statoil wants to be a part of this transformation in order to fulfil our purpose of turning natural resources into energy for people and progress for society.

Our strategy focuses on high value and low carbon. Embedded in the strategy is a set of principles to guide our decision-making. One of these principles is that we should leverage our low carbon advantage.

Our Climate Roadmap explains how we plan to achieve this and how we will develop our business, in support of the ambitions of the Paris Climate Agreement.

By 2020 we expect up to 25% of research funds to be devoted to new energy solutions & energy efficiency

Aiming to achieve annual  CO2 emission reductions of  3 million tonnes by 2030 compared to 2017.

By 2030 new energy has the potential to constitute around 15-20% of investments/annual capex

CO2 emission reductions of 3 million tonnes per year by 2030

Portfolio carbon intensity of 8kg CO2/boe by 2030

Methane emissions from the Norwegian gas value chain below 0.3%

Eliminate routine flaring by 2030
 

New energy solutions with potential to represent around 15-20% of capex by 2030

Up to 25% of research funds to NES and energy efficiency by 2020

Invest USD 200 million through our new energy ventures fund

Partner in the USD 1 billion OGCI Climate Investments

Continued support for carbon pricing

Minimum internal carbon price of USD 50 per tonne C02

Climate risk and performance embedded into strategy, incentives and decision-making 

Amplifying our climate actions through collaboration
 

Minimizing greenhouse gas emissions

Natural gas is an effective source of energy that can help limit CO2 emissions that cause global warming. Burning natural gas for power generation produces only around half the CO2 emissions compared to coal. Natural gas is mainly composed of methane, a potent greenhouse gas. Any leakages in the gas value chain will reduce the relative climate benefits of natural gas.

Statoil has carried out a study examining methane leaks of Norwegian natural gas delivered to customers in the UK and Germany.The findings show that the associated methane emissions are below 0.3% compared to 0.6% which is the average for all gas consumed in Europe. This proves that the methane emissions are well below the threshold where coal is more effective than gas, and that there is a clear climate benefit of burning gas for power production.

Curious to find out more? See the video of Bjørn Otto Sverdrup - Senior Vice President of Sustainability in Statoil - discussing our climate roadmap towards 2030

Statoil’s strong technology base and willingness to embrace new technologies is a part of our DNA. Our sharpened strategy highlights innovation and technology as a key enablers to deliver. The rapid pace of technology development will reshape the energy landscape.

We need to come up with technology and solutions to lower our carbon emissions.  Digitalisation will dominate technology development in the foreseeable future through integration of data, hardware, disciplines, value chains, industries and people. Innovation and technology will be essential to strengthen our competitiveness within O&G and renewables. 

I believe technology is essential for us to discover and develop more projects, and at the same time reduce cost and lower carbon emissions

Elisabeth B. Kvalheim, Statoil’s Chief technology officer. 

Our technology strategy

Statoil’s new technology strategy sets the long-term direction for technology development to support our sharpened strategy and deliver on the climate roadmap. It has five strategic technology directions covering oil and gas, reductions of carbon emissions, and renewable energy.

Two of the five directions address the need for new technology to reduce carbon emission and help build a material position in renewable energy. Innovation, cross-discipline solutions and digitalisation have a strong focus throughout the strategy.

The five directions in the technology strategy are:

Statoil Innovate

Innovation is about opportunities. Taking on the challenge of meeting energy demands creates tremendous opportunities to invent, innovate and improve. “Innovate” is Statoil's channel dedicated to challenge-driven open innovation, aimed at encouraging external experts to bring their ideas and work with us.

In addition to the challenge owner, we work closely with colleagues across disciplines to secure a high-quality evaluation process and a smooth handover to relevant investment, development or implementation channels.

Statoil Technology Invest

Technology and innovation are critical for us to reach our ambitious production and efficiency goals by 2020. Statoil Technology Invest (STI) is looking for young companies with exciting technology that will improve the effectiveness of Statoil’s oil and gas or renewables operations.

Through equity investments and active participation on the boards of these small companies we help management accelerate their companies’ development, spurring them on to become profitable and independent suppliers to Statoil and the rest of the energy industry.

*All figures from Annual report unless otherwise stated