“Destiny hour”, “crossroads” and “crossroads”. That was the message when Energy Minister Terje Aasland received the latest emissions figures from the Norwegian oil and gas industry on Thursday morning. The new status report showed that the industry reduced emissions by half a million tonnes of CO₂ equivalent in 2023. The decrease does not come from reduced production, but that several fields have received power from land (see the details here). With a total emission of 11.5 million tonnes of CO₂, oil and gas extraction is still the largest contributor to Norwegian greenhouse gas emissions. In second place follows the mainland industry, clocking in at 10.8 million tonnes. The report was handed over to the minister by the managing director of Offshore Norway, Hildegunn T. Blindheim. She made a point that the goal of 50 percent emission reductions in 2030 may still be within reach – given a set of prerequisites. – The petroleum industry is at a crossroads, she said. – Either the foundation was laid for the climate target to be reached, or this was the last year the industry could say that it was possible to reach the 2030 target. Norway’s emission sources 1990–2023 Select year 19901991199219931994199519961997199819992000200120022003200420052006200720082009201020112012201320142 01520162017201820192020202120222023 Million tonnes of CO₂ equivalents? Press for explanation of CO₂ equivalents Extraction of oil and gas 11.5 Go to news’s Climate Status – Truleg is within reach If the optimism is mild, he is nevertheless good news for the government, which last week received “bitter criticism” from the National Audit Office for its lack of “will and ability” to coordinate the work to implement the climate goals. The same week, the government announced that the climate report has been postponed until next year. 2024 marks the first year of full operation of the largest floating offshore wind farm in the world, Hywind Tampen. The first offshore wind auction in Norway was conducted for Sørlige Nordsjø II in March. Image: Crown Prince Haakon and Prime Minister Jonas Gahr Støre open Hywind Tampen. Photo: NTB The basis for the hopeful projections for the oil and gas industry is Konkraft’s long-term forecast. It says that if the industry achieves a 50 percent cut by 2030, emissions will be able to fall further by over 70 percent by 2040 and almost down to 95 percent in 2050. – This means that the industry’s long-term climate goal for 2050 of close to zero emissions is probably within reach , summarizes Offshore Noreg. The prerequisite is what they call “political will and predictable framework conditions” to realize planned electrification projects with power from land. Power from shore has historically been the main strategy to reduce emissions from the Norwegian continental shelf, but has become more controversial as the power situation has become more strained. In return, the oil and gas industry has other “strings” to play on: Energy efficiency Reduced flaring Power from offshore wind with direct connection to the installations on the shelf constitutes an emission reduction potential of around 185,000 tonnes of CO₂ in 2030 New in this year’s report is the measure “carbon capture at own facilities” . The measure includes the establishment of a CO₂ capture facility at Kårstø, which will reduce emissions by around 300,000 tonnes. Therefore, the oil and gas industry must reduce emissions by 50 percent In the summer of 2020, the Storting agreed that the oil and gas industry must reduce emissions by 50 percent by 2030. The goal was part of the oil tax package, which was adopted after a short-term process of “intense lobbying” and “dramatic negotiations” in the Storting. Shortly before (February 2020), the oil and gas industry launched its own objective to reduce emissions by 40 per cent within the same period. The FRP, which helped adopt the oil tax package, has since stated that the 50 per cent target was “premature” and “hairy”, and that “an orientation towards reality” requires that the target be adjusted down to 40 per cent. There are also mutterings from other quarters about “greenwashing” and that the 50 target encourages easy-to-buy “quick fix solutions” with a short lifespan and low societal benefit, including electrification of the continental shelf with onshore power. The estimate from the industry is that an emission reduction of 40 per cent will cost around NOK 50 billion. When asked what is the additional cost of raising the target by 10 per cent, the Ministry of Petroleum and Energy replies that they do not know. – It’s not the right thing to do. The ministry therefore does not have a factual basis to be able to more closely estimate the total costs of a 50 per cent emission cut by 2030, says Oil and Energy Minister Terje Aasland (Ap). This year’s forecast shows that the power demand in the industry will be in excess of 17 TWh in 2030, up from approximately 10 TWh this year. Photo: Harald Pettersen NOK 35 billion for the development of offshore wind In May, Equinor executives Anders Opedal and Kjetil Hove wrote in a reader’s article in DN where they asked the government to spend “at least NOK 45 billion” on offshore wind to electrify the shelf. They added that the climate goal was at stake: “It is important to make it clear that we are not asking for more money for the oil and gas industry, but that the income to the state from the CO2 tax can be better used to develop welcome power for everyone”. In the revised national budget, the government and SV this week agreed to set aside NOK 35 billion for the development of offshore wind through an “energy partnership” with the oil and gas industry. As part of the agreement, the CO2 tax for the petroleum industry is to be increased by what is currently an undetermined amount. In 2023, the CO2 tax will increase from NOK 766 to NOK 952 per tonne. – The oil and gas industry has always been clear that the industry wants to play a part in developing more renewable power through offshore wind, says Harald Solberg, managing director of Norsk Industri. – This is particularly important for the supplier industry, which needs new activity from 2026. Lars Tore Endresen / news Ole Erik Almlid, managing director NHO – The energy debate and the political signals create uncertainty in the planning of the major remaining electrification measures on the continental shelf that must be realized in order to reach 2030 – the goal. LO and NHO’s Kraftløftet shows that Norway must increase access to renewable power and build out more grids in Norway, so that all industries can cut their emissions. Christopher Isachsen Sandøy / news Peggy Hessen Følsvik, LO leader – We need more power if we are to reduce emissions, secure jobs and competitiveness. We need offshore wind quickly if we are to succeed in climate targets and develop the industry further. John Trygve Tollefsen / news Jørn Eggum, confederation leader Fellesforbundet – Since the climate strategy was launched in 2020, the industry has worked well to further develop the continental shelf and contribute to realizing the energy industry in the future on the Norwegian continental shelf. We are now seeing concrete projects both within offshore wind and CO2 storage, this is important for the entire value chain news Viggo Bondi, Const. managing director Rederiforbundet.- Emissions from offshore vessels are on the way down. Measures such as land traffic and energy efficiency are yielding results. Going forward, it is important that low-emission solutions on vessels are used to an even greater extent, and then the tool is needed to get the volume we need William Jobling / news Harald Solberg, managing director Norwegian Industry – The Oil and Gas industry has always been clear that the industry want to be involved in developing more renewable power through offshore wind and are positive to continue the dialogue with the government in the energy partnership in order to find and concretize a solution that can be presented in the state budget in the autumn. This is particularly important for the supplier industry, which needs new activity from 2026. Anders Eidesvik / news Frode Alfheim, head of the Confederation of Industry and Energy and FLT – The oil and gas industry is constantly cutting emissions from production. This is important in order to maintain the competitiveness of the industry, and in this way the foundations are laid for a competitive oil and gas industry for the future as well. CO₂ in the atmosphere measured in parts per million particles (ppm)460 parts per million particles (ppm)? Click for an explanation of parts per million, abbreviated ppmGo to news’s Climate Status Why is the graph so wavy? This is about seasons. In summer, the amount of CO₂ decreases because plants and trees absorb CO₂ from the air. In winter, the plants die, the CO₂ escapes and the graph rises. Since there are more plants and trees in the northern hemisphere, the seasons here control the amount of CO₂ in the atmosphere. What is the problem with a lot of CO₂ in the atmosphere? The greenhouse effect makes the earth livable, but more greenhouse gases, such as CO₂, increase this effect and make the earth warmer . The graph starts in 1960 because this was the year when the world began to measure CO₂ systematically. It happened on Mauna Loa in Hawaii and the curve shows the measurements from there. Before the world became industrialized there was around 280 ppm CO₂ in the atmosphere (year 1700). The researchers found that out by analyzing ice core samples. Will there be less CO₂ in the atmosphere if emissions are cut? No, not immediately. If we cut emissions, the amount of CO₂ in the atmosphere will only increase more slowly. The reduction in emissions must be large and last a long time before we can see an effect. Imagine that the atmosphere is a bathtub and the greenhouse gases are the water you fill in. Even if you turn off the tap, the bathtub will not run out of water. This is the case with greenhouse gases and CO₂. It takes a long time for CO₂ to break down in the atmosphere. This is the reason why the experts want technology that sucks out greenhouse gases from the atmosphere, in addition to us cutting emissions. The world’s politicians have decided that they will try to limit the warming of the world to 1.5 degrees, compared to how the temperature was before the industrial revolution. Then we must keep the amount of CO₂ in the atmosphere below 430 ppm, according to the UN’s climate panel. Published 20.06.2024, at 12.56 p.m
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“Destiny hour” for the Norwegian climate target – news Vestland
