Natural Gas Developments

Transcription

1 Natural Gas Developments EPPM, Bangkok, 9 October 2008 Technical trends, challenges and solutions Issues related to global warming and what are the solutions Role of government and industry Kjetil Tungland, StatoilHydro

2 2 Natural Gas Developments - Issues Global consumption trends Climate change Role of natural gas Technological trends Role of government and industry

3 3 This is StatoilHydro Established on 1 October 2007 following a merger between Statoil and Hydro s oil and energy business 31,000 employees in 40 countries Large oil and gas producer with 1.7 million barrels of oil equivalent (boe) per day and 6.3 billion boe in proven reserves The world s largest deep-water operator and the second largest gas supplier to Europe A world-leader in the use of deepwater technology Aworld-leader in carbon capture and storage

4 Integrated and flexible infrastructure Snøhvit 4 Melkøya Norwegian Continental Shelf 2007 Export pipelines to Germany, Belgium, France and the UK Åsgard Kristin ~ km of gas pipelines p Åsgard transport ~ 120 BCM of capacity Ormen Lange Norne Heidrun Haltenpipe Tjeldbergodden Gassled* operated by Gassco, StatoilHydro share 32,1% StatoilHydro is Technical Service Provider and developer for the bulk of the gas infrastructure Statfjord Nyhamna Tampen Link Troll Kollsnes Vesterled Kårstø Sleipner St Fergus Europipe II Ekofisk Europipe I Langeled Norpipe Zeepipe Franpipe Emden/Dornum *Includes Zeepipe, Europipe I, Europipe II, Franpipe, Statpipe, transport related facilities at Kårstø, Vesterled, Oseberg gas transport, Åsgard Transport, Norpipe, Kollsnes, Langeled, Tampen Link Easington Zeebrugge Dunkerque

5 5 World: Total primary energy demand Demand keeps increasing - Natural Gas increases its share Mtoe Other renewable Biomass & waste Hydro Nuclear Natural Gas Oil Coal Source: IEA WEO 2007 Reference Scenario World

6 6 Human GHG emission trends Gigatonn nes S2 S1 27 Gt *) IPCC FAR, WG III, S1 and S2 are two of IPCC s emission projection scenarios

7 7 Global CO 2 emissions 2 Mt Gas Oil Coal Source: IEA WEO 2007 Reference Scenario World

8 What can we do? 8 ENERGY EFFICIENCY REDUCE CONSUMPTION MORE EFFICIENT ENERGY USE MORE EFFICIENT ENERGY CONVERSION TOOL-BOX GLOBAL WARMING MITIGATION ENERGY SWITCHING from COAL & OIL to NATURAL GAS & HYDROGEN RENEWABLES CO 2 -STORAGE NUCLEAR POWER

9 9 EU s Climate Change Targets for % less climate gas emissions 20% renewables 10% bio fuels 20% more energy efficient Source: Council Conclusions March 2007

10 10 Emissions effect of gas Illustrative Example 2. New coal plant reductions 3. Gas switch reduction Significant CO 2 reductions from new plants A cleaner alternative to coal An important part of reaching the EU s climate goals 4. New CCGT emissions 1. Old coal plant emissions Source: Deutsche Bank

11 11 The future of gas in power generation steady increase Mtoe Other renewable Biomass & waste Hydro Nuclear Natural Gas Oil Coal Source: IEA WEO 2007 Reference Scenario World

12 12 World: Primary natural gas demand Bcm Increasing demand in developing countries Over 1000 bcm demand increase Developing countries Transition economies OECD Source: IEA WEO 2007 Reference Scenario World

13 13 Natural gas - World proved reserves Source: BP Statistical Review 2008

14 Increasing the need for intercontinental transportation 14

15 15 Key technology themes in the gas value chain Exploration & Production Liquefaction & Transportation Final consumption Find and produce - More, - Cheaper Transport - Longer, - Cheaper Consume - More efficient, i - Cheaper?? Emissions: Capture and Store

16 16 Find and produce more gas - cheaper Master harsh environments Locate and understand the formations Optimal drainage for maximum recovery, Technologies for complicated reservoirs

17 17 Transport the gas longer - cheaper Long distance pipelines Liquefaction and shipping - Floating LNG, GTL Integrated development and operations

18 18 Increase efficiency in use capture and store residual emissions

19 19 Role of Government and Industry A complicated challenge No Electricity Vulnerable Water Shortages Scarce Electricity Future Water Vulnerability FSU OECD OECD mill 1.1 billion Global Population (billion) Source: WNA 2006

20 Indicative cost comparisons - Who pays for the conversion? 20 Fuel Opex Capex HFO Gas Oil Coal Natural Gas Future alternative?

21 21 Different roles Government International commitments, treaties, commercial framework National implementation Directives Incentive schemes Promotion and support for new technology and solutions Right of way Intergovernmental cooperation / agreements Industry Corporate Social Responsibility New technology Reduced costs Higher efficiency i Break through alternatives Commercial solutions Cooperation Balanced sharing of risks

22 22 The path ahead The future will be fossil, but emissions must, and can, be reduced Natural gas can serve as a bridge to low carbon emissions A complex mix of approaches Social policies Economic policies Technological development Cooperation is key Government to Government Business to Business Government and Business