COP28: Norway Urges Gas Exploration Industry to 'Leave No Stone Unturned'
Posted 06/12/2023 14:26
As the COP28 U.N. climate talks emphasize global efforts to phase out fossil fuel use, Norway is urging exploration companies to tap into its vast proven natural gas resources. The Norwegian Petroleum Directorate (NPD) emphasized that despite technological challenges, there are significant untapped natural gas resources, approximately 860 billion standard cubic meters, in tight reservoirs with low permeability off the Norwegian coast.
The challenge lies in making production from these tight reservoirs economically viable, often relying on tie-backs to existing infrastructure with an extended production horizon. The NPD is urging exploration companies to collaborate, "leaving no stone unturned," to assess whether it is possible to profitably produce these remaining resources with existing technology.
Arne Jacobsen, Assistant Director at the NPD, emphasized the need to act swiftly, ensuring that the value of these resources is not lost. Companies are encouraged to think innovatively and work across fields to potentially achieve economies of scale in the production of these challenging volumes.
While Norway acknowledges the global move towards reducing reliance on fossil fuels, the country asserts its commitment to continue oil and gas production as long as there is demand, with the expectation that output will naturally decline from the early 2030s.
Major players in Norway's oil and gas sector, including Equinor, Aker BP, Vaar Energi, and Shell, are urged to explore unconventional solutions and collaboration to extract the untapped natural gas resources efficiently. Despite Norway's focus on sustainability and emissions reduction, it highlights the importance of responsible exploration and extraction to utilize available resources.