EQUINOR: Major Oil Production Meets Dramatically Reduced Emissions
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For nearly 50 years, Equinor has been pushing the boundaries of imagination and technology in the oil and gas industry to solve the challenges thrown up by an ever-changing world. “That quest has taken us to greater depths, deeper waters and new frontiers,” Equinor states, and nothing better exemplifies this than its record-breaking Johan Sverdrup field. Opened in January, its arrival has been a huge boon for Norway, for investors and in the ongoing battle to reduce emissions, and it is a key part of Equinor’s bid to a secure a sustainable energy future.
Active in several of the world’s most important oil and gas provinces, Equinor is also the leading operator on the Norwegian continental shelf and strategically headquartered in Stavanger; it is a vital player in a country which is itself one of the major energy producers and among the world’s largest exporters of oil.
“We’re the largest operator in Norway, one of the world’s largest offshore operators, and a growing force in renewables,” Equinor sums up. “Driven by our dedication to safety, equality and sustainability and our Nordic urge to explore beyond the horizon, we’re shaping the future of energy.” The company’s proud Norwegian origins are even more explicitly reflected in its new name, changed from Statoil in 2018 as it leads a global shift toward a brighter energy future.
SVERDRUP START-UP
“We are a leading explorer for new oil and gas fields,” Equinor says. “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.”
January 7th of this year proved a momentous day for all at Equinor, with the record-breaking Johan Sverdrup field officially opened by Norwegian Prime Minister Erna Solberg. Since Equinor and its partners on the field – Lundin Norway, Petoro, Aker BP and Total – started the field last October, production has increased to well in excess of 300,000 barrels per day; this is forecast to climb to 440,000 barrels per day before the conclusion of Phase 1.
In Phase 2, this daily production figure will rise to 660,000 barrels, with two thirds of the expected 2.7 billion barrels of oil equivalent in recoverable reserves at Johan Sverdrup likely to be produced before 2030. “We are working systematically on creating higher value from the field and achieving an optimal recovery rate,” explained Arne Sigve Nylund, executive vice president for Development and Production Norway. “The field ambition is to reach a recovery rate above 70%.”
“The Johan Sverdrup field is a technological triumph and a milestone for the Norwegian oil industry,” Equinor continues, “supplying the world with energy, and creating value for society. Now we’re creating value, benefitting Norwegian society and reducing emissions.”
Johan Sverdrup is expected to yield a total production revenue exceeding NOK1400 billion, benefitting the Norwegian state to the tune of more than NOK900 billion in revenue. It is hugely important for reasons other than the resources it harbours, however; the field is also setting a new standard for CO2 efficiency in extraction, with a land-based power supply leading to record-low CO2 emissions of well below 1kg per barrel, compared to a global average of around 18kg.
“Johan Sverdrup offers both high value creation and record-low emissions, making Johan Sverdrup a future-oriented oil field and part of the solution for reduced emissions. Electrification is an important tool for reaching Norwegian and international climate goals, aiming to reduce our greenhouse gas emissions in Norway by 40% by 2030, and close to zero emissions in 2050,” Eldar Sætre, CEO of Equinor, expanded.
CLEAN ENERGY COMMITMENT
Equinor is immensely proud of its new start-up, and it is easy to see why, looking at the enormous production potential twinned with an unprecedented reduction in emissions per barrel. This is not an easy time to operate in the oil sphere, with more people than ever calling for an end to production.
Far from deterring Equinor, such challenges push it to improve, both in its operations as a company and to spark charge in the industry as a whole. “If people didn’t care and protest about the climate, we’d be far worse off,” says geologist Thea Broch, from Equinor’s office in Harstad.
“Our industry is experiencing fundamental challenges, and facing new realities,” Equinor recognises. “Some see them as threats. In Equinor, 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 and renewables,” Equinor sums up. The elephantine Johan Sverdrup is showing how much more cleanly oil can be produced, and looks set to redefine oil discovery, numbering barrels by the billion.
On average, 18 kg of CO2 is emitted per barrel of oil produced. At the Johan Sverdrup field, emissions will be a record low of 0.67 kg — or 4% of the world average — per barrel. “World energy demand continues to rise, and we will still have a significant need for oil and gas in the foreseeable future. But not all barrels are created equal — and it’s important that the oil which is produced, is produced as cleanly as possible,” Equinor states.
At Johan Sverdrup it is innovation and the latest within digitalisation that enables oil production with much greater CO2 efficiency. Even more recently, Equinor has signed an agreement with Eidesvik Offshore shipyard for the construction of the Viking Energy supply vessel, capable of covering long distances fuelled by carbon-free ammonia. The vessel will transport supplies to installations on the Norwegian continental shelf (NCS).
“Equinor aims to reduce the emissions in our supply chain, and regards the use of ammonia as a promising solution,” commented Cecilie Rønning, senior vice president for Equinor’s joint operations support. “Viking Energy may become the first supply vessel in the world covering long distances fuelled by pure carbon-free ammonia.”
It “If we solve this the ship industry will for the first time use a fuel that does not generate emissions during combustion. We have never before used a carbon-free fuel on a large vessel without range anxiety,” concluded Henriette Undrum, Equinor’s head of future value chains, of the potential for another world-first for Equinor in its continued quest to reduce greenhouse gases and cut emissions, as oil and gas remain society’s primary energy sources for the foreseeable future.