Unprecedented change is taking place in the energy sector. Geopolitics, climate change and the need for increased efficiency are crucial, while demand for energy is rapidly growing. It presents a daunting prospect. However, Statoil believes that new realities bring new opportunities. By seizing these opportunities we can shape the future of energy.
NEW REALITIES, NEW OPPORTUNITIES
The world is facing competing challenges. Population and economic growth is creating rapid growth in demand for energy across the globe, a trend that is expected to continue for the foreseeable future. At the same time, geopolitical developments, a cyclical downturn in oil prices and the transition to a low-carbon economy are challenging the traditional ways we find, produce and consume energy.
The new landscape means that for Statoil, business as usual is not an option. Instead of burying our heads in the sand, the challenge is to respond in a way in which we are seen as part of the solution. Statoil believes that what other organisations may see as threats are actually opportunities. New markets are opening. New technologies are emerging. The challenge for us is to seize these opportunities.
There is a big change in the energy landscape and it will have implications for all the countries in the world.
– Fatih Birol, Executive Director, International Energy Agency
Significant change, both in our company and in the industry, is necessary to turn the new realities into new opportunities. This involves adopting a new mindset of radical change, to be even more open and collaborative, to be competitive at all times and to play an active role in the transition to a low-carbon economy. Of course these changes are not easy. However we believe that success will allow Statoil to continue to play an important role in providing energy for the future.
Below we look at the ways Statoil is adapting to the new landscape.
COLLABORATING TO TRANSFORM THE INDUSTRY
In many ways Statoil is well positioned to compete given our success in adapting to the current challenging environment. The need to create operational and cost efficiencies, brought about by lower oil prices, provides an opportunity for Statoil to build on its strength in collaborating with others. While this has not always been a natural instinct in the oil and gas industry, now more than ever the need for collaboration is clear.
Statoil has a proud history of innovation and collaboration. In fact, it is a key part of our DNA. We believe that we can go further and faster working with others, than we can do alone. For example, we have recently launched successful programmes with external partners to reduce natural gas flaring and to develop the world’s first steerable drilling liner system, a technology which reduces operational risk. We are also involved in joint industry projects, such as to develop new subsea technology for example.
Our ability to innovate and push the boundaries of technology has allowed us to explore in places thought too difficult, too cold and too deep. We recognise that only by continuing to innovate and deepening collaboration can we transform the industry as it enters this period of transition. To do this we need to conduct the same work simpler and smarter. This doesn’t mean simply cutting costs by doing less. It means getting to the core of a problem and mastering it, allowing us to do more with less.
PROVIDING ENERGY FOR A LOW CARBON FUTURE
As demand for energy grows, oil and gas will remain an important part of the future energy mix. However we need to transition to a low-carbon world. Statoil acknowledges the scientific consensus on human-induced climate change and is committed to being the most carbon-efficient oil and gas producer.
At the same time, Statoil recognises the need to increasingly use sources of renewable energy to power our future and we are ensuring we maximise the opportunities available in renewables. To do so Statoil recently established a new business area, New Energy Solutions, which will seek to create value for the company in the new energy space and build on our significant experience so far in offshore wind and carbon capture and storage. By combining our core capabilities, hewed from decades of experience in the oil and gas industry, with a passion for developing innovative technologies, Statoil is well positioned to take advantage of the opportunities afforded by renewable energy.
Furthermore, we believe that one of the most effective ways to address climate change is by putting a price on carbon. Carbon pricing already works in several markets throughout the world, including Norway, and we are actively calling for more governments to put a price on carbon emissions.