New OG21 report
The industry should develop and implement new technologies that reduce costs as well as climate gas emissions, says a new report from OG21.
The NCS is a global leader on low CO2-emissions, and thanks to substantial cost cuts in the Norwegian petroleum industry, also highly competitive on low break-even and operational costs.
The new OG21 report shows that technology continues to play an instrumental role in strengthening the competitiveness of the NCS and that there will be a need for a variety of new technologies to succeed.
- We are happy that the report confirms that value creation is high on the NCS as compared to many other petroleum provinces, and that the CO2-emissions are relatively low. Behind these great results, there is lots of good work and collaboration in the industry, as well as forward-looking authorities providing the right frame conditions. Looking ahead, we need to keep costs down, deliver projects faster and reduce CO2-emissions considerably, says Stein Olav Drange, Board Leader of OG21 and Vice President Research & Technology in Equinor
Estimates made by Rystad Energy on behalf of OG21, show that the potential value of new technology is high. Examples of such technologies are:
- Automatic drilling control.
- Standardized subsea-satellites.
- Improved power from shore technology, especially long-distance AC-power.
But to realize the potential value, technology will have to be developed and implemented. That requires sufficient incentives for research, piloting and early adoption. OG21 therefore recommends:
- The priorities of the OG21 Strategy should continue to form the basis for public funded petroleum research. Public funding of petroleum research should be increased, and not reduced, as suggested in the National budget for 2020.
- The research on capture, utilization and storage of CO2 (CCUS), should be strengthened and not reduced, as suggested in the National budget for 2020. CCUS is an important element in the de-carbonization of energy systems, including power production from fossil fuels and low-carbon energy carriers produced from fossil fuels. In addition, CCUS could contribute to enhanced oil recovery.
- Low-emission technologies such as offshore wind, power from shore and CCUS span across industries, and opportunities and challenges related to such technologies should therefore be evaluated across industry boundaries.
- Measures to better stimulate investments in CO2-reducing technologies should be evaluated.
The new OG21-report and the Rystad Energy report were presented at the OG21-forum, November 12th, 2019. Reports can be downloaded here:
Rystad Energy report: Technologies to improve NCS competitiveness.