Statoil is investing in a secure and sustainable energy future for the UK. We have a broad range of activities in the UK, including offshore wind projects, upstream operations on the continental shelf, natural gas trading and crude oil sales.
Our activities in the UK
- For decades we’ve enabled Norway to transform North Sea resources into vital energy; now we aim to be a leading energy company in UK waters.
- Our investment in the Mariner field will create 700 new long-term jobs in Aberdeen, onshore and offshore.
- Each year we provide enough gas to heat or power 8 million British homes.
- Our gas now meets one-fifth of the UK’s total demand, providing a reliable, lower carbon option for power generation.
- Our UK offshore wind business has the long term potential to provide low carbon electricity to approximately 5 million homes.
Gas and the future of energy in the UK
As the UK moves away from coal to a cleaner future, gas is playing an important role in helping reduce emissions and keep the lights on. Read about the role of gas in the future of energy here.
In 2016, coal made up only 9.1% of the UK’s generation.1 Meanwhile, new research2 indicates that coal’s place in the energy mix has plummeted by 74% over the past decade. The near end of coal means that the UK’s total CO2 emissions are now at their lowest level since Queen Victoria was on the throne. This significant reduction in greenhouse gases emissions should be applauded.
The plummeting use of coal, the most polluting fossil fuel in the energy mix, has been achieved through a combination of putting a price on carbon, pioneering legislation and commitment of successive governments to tackling climate change. This has resulted in coal power plants shutting down, knowing their fate had been decided.
However, as the UK’s demand for energy increases, it will need secure energy supplies to ensure the growth of its economy. As coal generation has fallen, power from natural gas has been increasing and filling the gap to ensure security of supply. In 2016, gas’ share of power generation increased from 29.5% to 42.4%.3 This is good news as, although gas is a fossil fuel, it produces less than half the CO2 emissions of coal. This means UK business can continue to thrive, while the country stays on track to meet its climate targets.
As natural gas has increased in the UK’s energy mix, it has led to some common misconceptions about where the UK gets is gas from. The fact is that the UK secures the majority of its imported gas from Norway, through pipeline gas, and has done so for decades. In 2016 around two thirds of gas imports came from Norwegian pipelines.
The long-standing gas partnership with Norway delivers a number of benefits for the UK. Firstly, gas from Norway has less distance to travel than is the case with other sources, which helps keep costs and the carbon footprint down. Secondly, as the gas comes through a fixed infrastructure, a known and predictable quantity of gas can be provided. This means the UK can plan ahead for seasonal variations over the longer term. The wider economic benefits of secure energy supplies should also not be overlooked.
The energy relationship between the UK and Norway has a long history. The high levels of trust between the two countries help to create investor confidence and stability for business, both in the UK and Norway. This benefits consumers, as it helps to keep costs down for bill payers across the UK.
In 2016, the British people decided in a referendum to leave the European Union. Negotiations will shortly start to determine the nature of the UK’s future economic relationship with the European Union. Similarly, the UK and Norway have started preliminary discussions about their future bilateral trading relationship once the UK has left the EU. Both the UK and Norwegian governments have made clear that they expect a strong UK/Norwegian energy partnership to continue after the UK leaves the European Union.
As the UK moves towards a low carbon economy, it can continue to look to its Norwegian neighbour to provide gas that is vital for growth and innovation. At Statoil we are committed to long term value creation in a low carbon future and helping shape the future of energy in the UK.
15 amazing facts about natural gas!
See why natural gas is a fundamental part of the UK and global energy mix, now and as part of a low-carbon future.
The UK is the global leader in offshore wind and Statoil is playing an active role in this dynamic sector. Watch these videos to find out more about our offshore wind operations.
Energy for decades
Producing energy is vital, and how to store it equally so. Our Mariner B vessel can store 850,000 barrels of oil produced from the North Sea. Find out more below.
MARINER KEY FACTS
- Heavy oil field discovered in 1981
- Recoverable reserves estimated at 250 million barrels of oil
- Statoil became operator of the Mariner field in 2007
- Average plateau production will be 55,000 barrels per day
- 30-year field life