Declining oil production, rising gas production
According to the Norwegian Petroleum Directorate, oil and gas production on the Norwegian continental shelf in 2008 totalled 242 million Sm3 oil equivalents (o.e.). Oil production declined by almost 4 per cent from 2007, while gas production rose by about 11 per cent.
In 2007, Norway was ranked as the world’s fifth largest oil exporter, and the eleventh largest oil-producing country, while in 2006, it was the third largest gas exporter and sixth largest gas producer in the world.
Impacts of the oil and gas industry
Impacts of emissions to air
Emissions to air from the oil and gas industry include substances that are implicated in to global warming and others with more local effects, such as acidification of lakes and forests. Because it takes some time before the impacts of these emissions become apparent, it can be difficult to identify them and link them directly to oil and gas activities.
Impacts of discharges to the sea
Current knowledge indicates that discharges to the sea from the oil and gas industry are not having serious environmental impacts. Environmental monitoring suggests that marine organisms are not exposed to concentrations of pollutants that are high enough to have negative effects. This applies both to individual organisms and to populations.
However, we do not know enough about possible long-term effects. Changes may be slow and difficult to distinguish from natural variations.
Until now, oil spills from the Norwegian oil and gas industry have not had serious environmental impacts. This is largely because of favourable conditions when spills have occurred: so far, they have been at times of year when there are no large concentrations of vulnerable organisms in the areas affected.
Energy use adds to pressure on the environment
The use of fossil fuels results in local, regional and global pollution problems. Both the oil and gas industry itself and our use of oil and gas products generate releases of pollutants. The use of fossil energy sources is unlikely to decrease in the years ahead. The pressure on the environment is likely to increase unless effective steps are taken to eliminate or reduce pollution.
Projections indicate that Norwegian oil and gas production will remain relatively stable for the next few years. The decline in oil production and the rise in gas production are likely to continue. The authorities expect the oil companies to focus their efforts on the development of new and improved technology to ensure that national targets for reducing pollution are achieved.
The figure below shows projections of production on the Norwegian continental shelf. It is based on the Petroleum Directorate’s estimates of recoverable resources.
Pollutants released to air, sea and the seabed
Large quantities of pollutants are released to air, water and the seabed during exploration activities and oil and gas production. This happens at all stages from oil and gas field operation to pipeline construction, transport of oil and gas, and onshore processing. When oil fields are exhausted, decommissioning of installations and equipment will result in further releases of pollutants and generate waste that must be properly disposed of.
Large emissions of greenhouse gases and acidifying gases
Oil and gas activities account for a substantial proportion of Norway’s emissions to air. In 2008, the industry generated 27 per cent of the country’s CO2 emissions, 24 per cent of its NOx emissions and 39 per cent of its NMVOC emissions.
As fields age and the volume of produced water rises, more and more energy must be used to separate the water from the oil or gas stream and treat it or inject it into geological formations. As a result, greenhouse gas emissions also rise.
In 2008, CO2 emissions from Norway’s oil and gas activities totalled 13.8 million tonnes, as against 13.3 million tonnes in 2007. From 2001 to 2006, the level of emissions remained fairly stable. In 2007, there was a rise as a result of problems in connection with the start-up of the LNG plant at Melkøya near Hammerfest. The rise in 2008 is mainly due to the fact that the authorities required the operators to use a higher emission factor when calculating CO2 emissions from flaring offshore.
Steep reduction in releases of environmentally harmful chemicals
It is not possible today for the oil and gas industry to operate efficiently without using large quantities of chemicals. Roughly 25 per cent of the chemicals used are released to the sea. As a rule, discharges increase with the age of a field. This is because more energy and more chemicals are needed to extract the resources as a reservoir becomes depleted.
The largest releases of chemicals take place during well-drilling. Chemicals are discharged together with drill cuttings, and are mainly deposited on the seabed near the drilling rigs. However, the finest particles are widely dispersed with ocean currents. Traces of drilling fluids from the North Sea have for example been found as far away as the outer Oslofjord.
In the past 10 years, releases of environmentally harmful chemicals have been reduced by 99 per cent.
Discharges of oil relatively stable
Water in varying quantities – produced water – is always produced along with oil and gas. It contains low concentrations of various naturally occurring substances, including oil components, heavy metals and radioactive substances, and also production chemicals.
The quantity of produced water generally increases substantially with the age of the oil field. The fields on the Norwegian continental shelf are now producing roughly equal amounts of water and oil. Discharges of produced water and discharges from shipping are the largest sources of discharges of oil to the North Sea and Norwegian Sea.
Despite rising volumes of produced water, the volume discharged has been relatively stable in recent years. This is because more of the water is being injected into geological formations – almost 18 per cent of the total in 2008. The rest was treated and then discharged to the sea. The main effect of treatment is to reduce the content of oil components in produced water.
Oil and chemical spills
There has been no major blow-out on the Norwegian continental shelf since the Ekofisk Bravo incident in 1977, and the probability of another accident of this kind is low. However, if a major spill does occur, both the immediate and the long-term impacts may be severe, particularly for the coastal environment and seabirds.
More recently, there have been few major oil and chemical spills, but many more small spills. No direct impacts have been identified.
National regulation and international cooperation
The ultimate solution to these pollution problems would be to eliminate the use of fossil fuels. In the short term, this is not possible either in practical or in political terms. The focus at both national and international level is therefore on ways of reducing releases of pollutants.
National regulation of pollution
The Climate and Pollution Agency sets limits on releases from oil and gas activities through the discharge permits it issues and the health, environment and safety regulations for the petroleum sector.
Requirements to use less harmful chemicals and reduce releases of pollutants, together with the development of new technology, are bringing about reductions in the amount of pollution generated per unit of oil and gas produced. Mandatory environmental monitoring programmes ensure that a watch is kept on the remaining pollution and its impacts. As a result of all these regulatory measures, the Norwegian oil and gas industry has achieved one of the lowest pollution levels in the world.
The Norwegian authorities have defined acceptable levels of environmental pressure from the petroleum industry in several white papers. The zero-discharge goal states that no new petroleum installations on the Norwegian continental shelf will release oil or possibly harmful substances to the sea.
On existing fields, steps to achieve this goal were to be taken by the end of 2005. However, there have been delays on some fields. For the Barents Sea, stricter standards for releases of oil and chemicals have been set than for other parts of the Norwegian continental shelf. These are described in the white paper on an integrated management plan for the Barents–Lofoten area.
International cooperation to reduce pollution
Norway is involved in international cooperation to reduce the environmental impacts of oil and gas activities. The most important forums are: