"Natural gas is an attractive energy source for the future," saidRune Bjørnson, StatoilHydro's executive vice president for natural gasduring a press seminar in Oslo on Thursday, 24 September.
StatoilHydro is currently the second largest supplier of gas toEurope, and the group helps secure a stable supply of energy to Europethrough export of gas from the Norwegian continental shelf (NCS) , aswell as holding significant international gas positions in Algeria,Azerbaijan and in the USA.
Rune Bjørnson put matters into perspective, pointing out theformidable growth in natural gas consumption in Europe from the 1960sto the present day. Fifty years ago, gas consumption was practicallynil. Today, gas accounts for around 25 per cent of Europe's totalenergy supply.
Natural gas currently accounts for 23 per cent of the total value ofNorwegian exports. The value of gas exports reached NOK 218 billion in2008, while total Norwegian exports were NOK 958 billion.
Global energy demand will continue to grow, driven by populationgrowth and rising prosperity. The growth in demand will be highest inAsia, while demand for energy and gas will also increase inStatoilHydro's main markets, Europe and the USA.
"I am convinced that natural gas will be a competitive energy source for many decades to come," said Bjørnson.
He pointed out that natural gas is an important bridge towards a lowcarbon economy because it is the cleanest burning fossil fuel, withmuch lower emissions of greenhouse gases than coal and oil. Replacingolder coal power plants with new gas power plants can reduce carbondioxide emissions by as much as 70 per cent. Provided that all ofStatoilHydro’s gas export from the NCS in 2008 substituted coalgenerated power in Europe, the total CO2 emission reduction would havebeen approximately 220 million tonnes. As a comparison, total NorwegianCO2-emissions were around 44 million tonnes last year.
Europe still uses more coal than gas to produce electricity. Gasfrom the Norwegian continental shelf is an attractive energy sourceseen in an overall climate perspective, thanks to low greenhouse gasemissions during production and its proximity to the market .
The NCS still holds substantial gas reserves in producing fields and proven reserves.
"But if we are to maintain our leading gas position, we must findmore gas and develop new discoveries and fields on the NCS,” saidBjørnson. “Ultimately, this means that we need access to new acreage toensure a stable flow of high volumes of gas from the NCS to Europe," hestressed.
The development of commercial gas value chains is a strategic focusarea for the company. StatoilHydro has a stake in the Shah Deniz fieldin Azerbaijan, which is currently being further developed and couldcreate a basis for establishing a new gas corridor to Europe.Meanwhile, in the USA, the world's largest and most liquid gas market,StatoilHydro is building its gas position through participation inshale gas (Marcellus), offshore gas production in the Gulf of Mexico,and by importing LNG to the US east coast.
"Natural gas is an important part of StatoilHydro's businessactivities, and a crucial element in securing continued growth for thecompany," said Bjørnson.
Tags:StatoilHydro