We believe a low CO2 footprint is a competitive advantage, providing us with attractive business opportunities in a transition to a lower emission economy.

Statoil acknowledges the Intergovernmental Panel on Climate Change’s (IPCC’s) scientific consensus of the influence human activities have on inducing climate change. Statoil aims to be a part of a global energy transformation and continue to turn natural resources into energy for people and progress for society.

Our strategy focuses on three main areas. We are building a high value and low carbon oil and gas portfolio, we are building a material industrial position in renewable energy and low carbon solutions, and we embed climate risk and performance into our decision-making.

Our Climate Roadmap explains how we plan to achieve our goals and how we will develop our business, in support of the ambitions set out in 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.

Our position on climate 

  • Climate policy measures should be predictable, transparent and internationally applied in order to avoid carbon leakage, ensure cost effectiveness and create a level playing field in the global market.
  • A price on greenhouse gas emissions based on the ‘emitter pays’ principle should be the preferred climate policy framework.
  • Multiple regulations of greenhouse gases should be avoided.
  • Climate policy measures should be technology and fuel-neutral to maximize innovation through market competition.
  • Targeted public investment into research and development and market scaling support is needed to stimulate relevant new and emerging technologies. The level of support should be reduced over time and removed entirely for competitive technologies. 
  • Statoil welcomes initiatives towards increased disclosure on carbon performance and climate risk.

A core element of our business strategy is to embrace the energy transition and embed our response to climate change into the heart of our operations and processes. One of our main efforts is to reduce emissions from our ongoing operations and future projects.

One of our biggest successes so far in emission reduction has come from initiatives to stop flaring. Statoil will eliminate continuous production flaring in our operations altogether by 2030, in line with the World Bank Zero Routine Flaring by 2030 initiative. 

Statoil works systematically to reduce CO2 emissions. In September 2017, we reached our goal of reducing annual CO2 emissions from NCS with 1.2 million tonnes. This was more than two years ahead of schedule and 50% above the target set by the Norwegian petroleum industry.

We are increasing our efforts to track and reduce methane emissions throughout the natural gas value chain, from oil and gas extraction, to processing and distribution. 


We are raising our standards to reduce CO emissions from logistics solutions in the industry. We have already reduced emissions by nearly 30% compared to 2011, supporting our goal to be the most carbon-efficient producer of oil and gas.

Our climate roadmap includes our increasing business within new energy solutions. Some of our efforts are already producing energy for thousands of households, while some are being developed. Our ambition is to scale up investments in profitable new energy solutions, to gradually complement our oil and gas portfolio.

Statoil has been actively involved in offshore wind projects for more than ten years and aims to develop profitable projects in selected markets. To date we have invested around USD 2.3 billion, using our offshore experience to develop large scale wind farms and innovative floating platform technology that facilitates wind power in deep-water areas. 

Statoil has long been a pioneer in carbon capture and storage (CCS) — operating some of the largest projects worldwide. Statoil is developing the CO2 storage part of a full CCS value chain, currently being created in Norway through public-private partnerships. This will be the first storage site in the world receiving CO2 from several industrial sources. 

Improved technology and lower costs have turned solar into an increasingly attractive  power source competing with traditional sources of energy in important markets. In October 2017, we entered our first solar project in Brazil.

Investing through Statoil Energy Ventures is one channel to broaden our business, and be a part of the technological development. The USD 200 million venture fund was established in 2016, and is one of the world’s largest corporate venture funds dedicated to investing in attractive and ambitious growth companies in renewable energy. 

By exploring new low carbon opportunities, we aim to be at the forefront of developments in the energy market. We aim to devote up to 25% of our research spending to new energy solutions and emission reduction efforts by 2020. 

Statoil has long been a pioneer in carbon capture and storage (CCS), currently the main technology for decarbonising fossil fuels. We operate some of the largest projects worldwide, capturing and storing more than 20 million tonnes of CO2 to date at Sleipner and Snøhvit in Norway. In our research, we aim to contribute to the development of commercial scale CCS projects.

We look for opportunities to create synergies between renewables and the oil and gas value chain. For example converting gas to hydrogen, while capturing and storing the CO2, as a potential way to help our customers in the power and heating sectors meet their climate targets. It is still early days for hydrogen, but we see this is an exciting opportunity for natural gas in the future.

We believe our offshore experience will be an important advantage in exploring geothermal opportunities. In 2016, we drilled the world's deepest geothermal well on Iceland. The goal was to explore how the high temperatures deep down in the earth can be used for power production. We are now in the middle of an exciting test period.

Statoil’s new technology strategy intensifies the company’s research on CO2 reduction and digital solutions, and focuses on safety, high value creation and low carbon. We expect to devote up to 25% of our research spending to new energy solutions and emission reduction efforts by 2020. By exploring new low carbon opportunities, we aim to be at the forefront of the energy market as it evolves.

Climate considerations are integrated in our vision, strategy and performance management. Both our corporate executive committee and our board of directors frequently discuss the business risks and opportunities associated with climate change, including regulatory, market, technological and physical risk factors. 

We have created a range of short, medium and long-term targets designed to measure progress and incentivise performance across the entire company—starting at the top. We have also introduced a set of stringent decision criteria to ensure we consider relevant climate risk factors in all future investment decisions, and set an internal carbon price of at least USD50 per tonne of CO2 for all projects.

To reduce the carbon intensity of our overall portfolio, we have set an ambitious CO2 intensity target and introduced a number of new principles to reach it. As a result some resources, like heavy oil and oil sands, will not have a place in our future strategy.

Our new exploration strategy will affect the way we work, the decisions we make and what we deliver. There is an increased focus on high quality resources. This includes resources with good reservoir quality, high resource density and light hydrocarbons, as well as access to infrastructure, competitive fiscal requirements and good possibilities for development. 

Our business needs to be resilient to a future environment that is likely to bring large and small challenges and changes. To ensure that we consider relevant risk factors, we apply tools such as internal carbon pricing, scenario planning and stress testing of projects against various oil and gas price assumptions. We also stress test our portfolio against IEA scenarios on an annual basis. 

Creating a low carbon advantage

Related stories