Statoil Ramps Up Carbon Pricing, Methane Reduction Efforts

Statoil CEO Helge Lund addresses the company's climate commitments today at the UN Secretary General’s Climate Summit in New York.

“Fighting climate change is vital,” says Lund. “More than 80% of greenhouse gas emissions are linked to the use of fossil fuels. Statoil (STO) has a clear objective—to be recognised as the most carbon-efficient oil and gas producer in the world.”

Today, Lund will address the importance of the Climate and Clean Air Coalition (CCAC) Oil and Gas Partnership on behalf of the founding partners at Secretary General Ban Ki-moon’s press conference at the UN Climate Summit in New York. He will also announce that Statoil has joined the partnership.

The CCAC Oil and Gas Partnership is a unique opportunity to join forces with partners from government and civil society—as well as the industry—to share information, learning and best practice on methane reduction. The partnership commits Statoil to transparency about methane emissions and its roadmap for reducing them.

Lund will also voice Statoil’s strong support for a carbon price. He will explain that Statoil has proved that profitable business can be compatible with a high price on carbon and why a price on carbon is crucial to drive operational efficiency and technological innovation.

Carbon price

By putting a price on carbon, the oil and gas industry has an incentive to find new, cost-efficient ways to bring down emissions.

For more than 20 years Statoil in Norway has been charged a CO2 tax of up to USD 75 per tonne. This has made the Norwegian continental shelf a world leader in carbon-efficient oil and gas production.

Statoil also applies an internal price on carbon of USD 50 per tonne of CO2 equivalent in its investment decisions.

At the summit, Lund will call for effective climate policies to be introduced in all countries and for governments to agree on an international carbon pricing system in Paris in 2015.

Statoil demonstrates its commitment as a signatory to the World Bank Statement “Putting a Price on Carbon”.

Methane

The International Energy Agency identified minimising methane emissions from upstream oil and gas production as one of the top four key global mitigation opportunities to reduce energy sector greenhouse gas emissions by 2020.

In 2013 Statoil was a top quartile upstream performer, with some of the lowest methane emissions per produced amount of energy in the industry.

The company has reported its emissions in its annual sustainability report for many years. The CCAC reporting structure enables even greater transparency.