What we do
Since 1972 we have been pushing the boundaries of imagination and technology, solving challenges in the oil and gas industry. That quest has taken us to greater depths, deeper waters and new frontiers. Now in challenging times, we’re going the extra distance to work simpler, smarter and more cost-effectively—and to help shape the future of energy.
Our industry is experiencing fundamental challenges. From climate change and geopolitics to the energy markets, we are facing new realities. Some see them as threats. In Statoil, we believe our job is to turn them into opportunities. That’s why we’re looking for new ways to utilise our expertise in the energy industry, exploring opportunities in new energy as well as driving innovation in oil and gas around the world. We know that the future has to be low carbon. Our ambition is to be the world’s most carbon-efficient oil and gas producer, as well as driving innovation in offshore wind. We’re a company driven by solving tomorrow’s energy challenges, today.
Every single day we deliver oil, gas and wind power to energise the lives of more than 170 million people, enabling them to cook, create, work and travel. Oil, gas and electricity quite literally turn the wheels of society—in transportation, communications, manufacturing and industry.
Our products are essential in other areas too: people often forget that petrochemicals and gas are needed for manufacturing plastics, synthetic fabrics, asphalt, cosmetics and even medicines. They may be based on lesser-known substances such as naphtha, condensates, wet gas or methane, but they nevertheless play important roles in modern society. Before any of these products can be made, they undergo processing at our terminals and refineries to prepare the raw materials needed by industry.
We are also a major crude oil seller and the second-largest supplier of natural gas to the European market. We also supply renewable energy to the UK through our offshore wind farm Sheringham Shoal.
We are a leading explorer for new oil and gas fields. We do this not only to replenish the reserves we produce from current fields, but also to meet the energy needs of a growing world population with improving living standards. The two-degree climate target scenario will entail significant growth in renewables, but oil and gas will continue to be society's primary energy sources for many years to come.
Our response is to focus on innovation in exploration and production to recover valuable resources in the most efficient and sustainable way possible. . Oil is such an important and valuable resource that it is important to find new sources and to extend the production life of existing fields.
Our people are innovative and ambitious, and our culture encourages collaboration and new ideas. Working closely with industry partners, authorities and local communities, we drill to maintain our position as one of the world’s leading exploration companies — whether you measure us in terms of value creation, health, safety or environmental performance.
We received our first licence on the Norwegian Continental Shelf (NCS) in the 1970s, acquired our first operatorships in the 1980s—and thereafter gradually broadened our footprint. The NCS remains the backbone of our company, the area where we recover more volumes than anywhere else in the world.
In the early 1990s, as the NCS matured, we expanded our geographical presence and portfolio of oil and gas fields. Today, we are engaged in projects worldwide—in Europe, the Americas, Asia, Australia and Africa. We operate in more than 30 countries, and our partner-operated fields contribute additional significant production volumes.
Our non-NCS operations account for one third of the company’s total production and are important to secure the long-term supply of hydrocarbons. A diverse portfolio of fields allows company-wide opportunity set of projects. The purpose is to create a dynamic, efficient and self-regulating resource allocation, which optimises value creation within our human and financial resource capacities.
Crude oil is the world's most actively traded commodity and the most important natural resource of the industrialized nations, accounting for about one third of mankind’s primary energy supply.
After over a hundred years of oil-fuelled economic development, the world now consumes almost 14 billion litres of oil per day. Oil can generate heat, drive machinery and fuel vehicles and aircraft, and its components are used to manufacture countless chemical products, such as plastics, detergents, fertilizers, paints, and medicines. In fact, our world would literally grind to a halt without oil.
Oil and gas will continue to be society's most important energy sources for many years.
Statoil is among the world's largest net sellers of crude oil and condensate, the second-largest supplier of natural gas to the European market, and we also have substantial processing and refining operations. We are the largest operator on the Norwegian continental shelf, with two thirds of total production, and are also expanding our international activities. We are now present in several of the most important oil and gas provinces in the world, operating more than 40 oil and gas producing fields, making us the world’s largest operator in waters deeper than 100 metres.
Our focus is on innovation in exploration, production and Improved Oil Recovery (IOR) to recover valuable resources that were previously thought unreachable.
A number of larger field developments on the NCS and internationally are currently in the project development pipeline. They include Aasta Hansteen, Dagny, Johan Castrup, Johan Sverdrup, the Snøhvit future development and Mariner (UK), all of which are expected to contribute significantly to our total production in the future.
CRUDE OIL ASSAYS
No two crude oils are alike, each having unique molecular and chemical characteristics. If you need to know more about the chemical evaluation of our crude oil feedstocks, explore our crude oil assays below.
The Johan Sverdrup discovery in 2011 turned out to be one of the biggest Norwegian finds ever. After the major discoveries of the 1970s and 1980s petered out, many people thought that the days of the giant finds were over. But our team’s dedication and relentless search for new fields paid off.
We made the Aldous Major North and Aldous Major South finds in 2011 in the North Sea 140 km west of Stavanger. Later these were unified with the Avaldsnes find made by Lundin in 2010 and our Geitungen find in 2012. The field was renamed Johan Sverdrup after a former Norwegian prime minister. We are the operator of the development phase, and will remain operator after it comes on stream in 2019.
The Norwegian Petroleum Directorate estimates that the field contains between 200 and 400 million Sm3 recoverable oil, as well as 7.8 billion Sm3 gas, making it one of the largest on the Norwegian continental shelf.
With peak production representing nearly 25% of all Norwegian oil production and an expected life span of 50 years, the Johan Sverdrup oil field will secure jobs and value creation through major investments, production revenues and taxes. Through the implementation of new technologies, offshore emissions of greenhouse gases will be reduced by between 80 and 90 per cent.
And last but not least, this success has inspired us in our search for the next elephant.
Odourless, colourless and flammable natural gas isn’t just used for heating and cooking. Numerous everyday products wouldn’t be possible without it. From vinyl flooring, carpeting, cell phones and piping to aspirin, artificial limbs and heart valves, natural gas plays a vital part in the petro-chemical industry.
Natural gas also produces less than half the CO2 emissions compared to coal, and far fewer other airborne emissions. When used to heat homes or power industry, it releases 25–30% less CO2 than oil and 40–50% less CO2 than coal per unit of energy produced. And it is a flexible and scalable base load resource to support supplies of renewable energy. This is why natural gas is a compelling alternative in the global energy mix, and as part of a future low-carbon economy.
As the second largest retailer of gas to Europe, our marketed volumes already cover the total energy consumption equivalent to 100 million European households.
We believe that Europe should continue to invest in natural gas as the most cost-effective and readily-available solution to meeting its energy security and emission reduction targets. With our geographical proximity, flexible production capabilities and effective transportation systems, we believe we are uniquely positioned to contribute to Europe’s evolving energy market.
We are one of the world's major net sellers of crude oil, operating from sales offices in Stavanger, Oslo, London, Singapore, Stamford (USA) and Calgary. We trade in petroleum products, methanol, natural gas, power and emission allowances all over the world, trading over two million barrels of crude oil and condensate (light oil) per day.
Our marketing and trading division plays a key role in the value chains, ensuring the steady flow of our upstream liquids and natural gas production. With the asset backed trading model, our traders use Statoil’s assets—equity positions, terminals, refineries and pipelines—as trading and optimisation tools to maximise value.
We produce nearly 1,200,000 barrels (including natural gas liquids and condensate) per day from the Norwegian continental shelf, and are also responsible for sales and marketing on behalf of the Norwegian state's direct financial interest (SDFI) and trading third-party crude oil produced by other North Sea equity owners.
Our main crude oil market is north-west Europe, but we sell also volumes to North America and Asia. Most of the crude oil volumes are sold in the spot market based on publicly quoted market prices. Seaborne transportation of our crude, product, gas liquids and LNG volumes involves more than 4300 voyages worldwide per year and moves over 100 million tonnes annually.
We transport and market approximately 70% of all NCS gas and have a growing US gas position. A significant proportion of our gas sales contracts are sold under long-term contracts with large industrial customers, power producers and local distribution companies. In addition, gas is sold through short-term contracts and trading on European liquid marketplaces both in the UK and the European continent. In the USA, gas is sold through a mix of contracts and trading in liquid marketplaces.
In addition to our upstream activities, we operate midstream terminals and refineries in and outside Norway. Our facilities are particularly important for the marketing of crude oil from the Norwegian continental shelf, by providing intermediate storage and processing capacity for crude oil into high-quality diesel, heating oil and propane for consumers in Europe, North America and Asia.
We are constantly seeking to increase production and reduce emissions from our refineries. At all our facilities, we apply technology to reduce the negative environmental impact of our processes and ensure safe operations.
Our oil refinery at Mongstad is the largest of its kind in Norway. First built in the early 1970s, the Mongstad facility has been upgraded and expanded multiple times, ensuring that its products meet the ever increasing standards of environmental performance and production output.
By 2040, our projections suggest that the decarbonised power sector will account for as much as 57% of the world’s energy mix, compared to 21% today. As a leading energy provider actively supporting a low-carbon future, we aim to support this transition through our core activities.
Our New Energy Solutions business area will complement our oil and gas portfolio with profitable renewable energy and low-carbon solutions, starting with our existing offshore wind portfolio and carbon capture and storage (CCS) projects. By combining our progressive technologies and operational expertise with foresight and responsiveness, we aim to seize the new business opportunities that are opening up in clean energy.
Through partnerships and cooperation, we will build this part of Statoil on a strong industrial platform of value creation and profitability.
The Sheringham Shoal wind farm, located off the coast of Norfolk, UK, was formally opened in September 2012. The wind farm is in full production with 88 turbines and an installed capacity of 317 megwatt (MW). Following the divestment in 2014, it is now owned 40% by Statkraft, a Norwegian wholly state-owned company, 40% by Statoil and 20% by the UK Green Investment Bank (GIB). The wind farm’s estimated annual production is 1.1 terawatt hours (TWh) and it will provide power for approximately 220,000 households.
In 2015, we made the final investment decision to build the world’s first floating wind farm, the Hywind pilot park offshore Peterhead in Aberdeenshire, Scotland. This marks an important step forward for offshore wind technology, and potentially opens attractive new markets for renewable energy production worldwide. The Hywind park comes in addition to Sheringham Shoal and the nearby Dudgeon offshore wind farm, currently under development. We are also a partner in the Dogger Bank offshore wind project through the Forewind consortium. In the long term, our UK offshore wind business has the potential to provide competitive low carbon electricity to around 4.5 million UK homes.
Our rationale for offshore wind is to build on our significant offshore experience in harsh environments and rough waters, applying our expertise to new areas. The projects combine known technologies in a new setting, enabling wind energy to be captured in deep-water environments which offer better wind conditions and reduced conflict potential when applying for acreage.