1. Utforsking Norge 2006-12-14 – dilemmas and opportunities Egil Myklebust The Norwegian Academy of Science and Letters Oslo, January 25, 2007 Energy and environment in the Arctic

2. OHa Dato: 2006-12-14 Side: 2 Fighting poverty requires more energy Access to hydrocarbons becoming more challenging Greenhouse gases and climate change derives from burning hydrocarbons Challenge: Producing more energy with less damage to the environment The global energy dilemma

3. OHa Dato: 2006-12-14 Side: 3 Untapped petroleum resources in the north compared to total global resources Source: U.S. Geological Survey The Arctic Rest of the world North Africa Caspian Sea Middle-East 25% of the world’s undiscovered petroleum potential may be in the Arctic 1: Barents Sea 2: South Kara Sea and West Siberia 3: North Kara Sea 4: Laptev Sea 5: East Siberian Sea 6: Chuchi Sea 7: Alaska North Slope 8: East Greenland

4. OHa Dato: 2006-12-14 Side: 4 Potential resources on the shelf Barents Sea 990 mill Sm 3 o.e. Norwegian Sea 1220 mill Sm 3 o.e. North Sea 1190 mill Sm 3 o.e. Source: Norwegian Petroleum Directorate Undiscovered resources in different parts of the Norwegian continental shelf North Sea Norwegian Sea Barents Sea

5. OHa Dato: 2006-12-14 Side: 5 Successes and disappointments in the Barents Sea Technical resources / wells per year Barents Sea project Goliat ULB Snøhvit Firstdrilling 63 exploration wells drilled Snøhvit developed Goliat possible development

6. OHa Dato: 2006-12-14 Side: 6 Challenge: The environment Tough climate and formation of ice Ecosystems with high production in short periods and organisms with high dependence on storage of fat as energy Large and important commercial fish stocks and large stocks of seabirds and marine mammals Receiving high levels of far-reaching pollution

7. OHa Dato: 2006-12-14 Side: 7 Transportation over long distances Impact from low temperatures, formation of ice and limited daylight - Daily operations - Oil-spill preparedness Lack of infrastructure Co-existence with existing industries - In some areas considerations of natives Challenge: Operational

8. OHa Dato: 2006-12-14 Side: 8... …...... Challenge: Reputation, ”licence to operate” How to get acceptance for and convince stakeholders that the petroleum industry can operate in a sustianable manner… - requires broad stakeholders dialog - requires proactivity rather than letting time go by …in an area that - is conceived as an icon for pure and undisturbed nature - has important natural resources - has fisheries with international importance - has a challenging climate

9. OHa Dato: 2006-12-14 Side: 9 The most environmentally sound drilling operations take place on the Norwegian shelf Develop and apply new technologies and conceptual solutions Substitute environmentally depriving substances Comply with zero-emission conditions New environmental standards in the north

10. OHa Dato: 2006-12-14 Side: 10 Emissions to air from Norwegian and international petroleum industry. 2005 Norwegian Continental Shelf International average for oil-producing countries Kilo emissions per ton oil equivalents produced (for CO 2 unit for emission 100 kilo) Sources: OGP / OLF Carbon dioxide (CO 2 ) Nitrogen oxide (NOx) Methane (CH 4 ) Volatile organic compounds, except Methane (VOC) Sulphur dioxide (SO 2 )

11. OHa Dato: 2006-12-14 Side: 11 Crossed the Norwegian trench Horizontal exploitation Kilometre deep waters, extreme seabed conditions, wind, waves, strong currents and submarine ice formation The world’s longest subsea gas pipeline Snøhvit From Ekofisk to Ormen Lange

12. OHa Dato: 2006-12-14 Side: 12 The undiscovered resources will be explored and utilized – independent of Norwegian decisions There is always a demand for the best technology and competence Those who do it a lot, do it best Excellence by experience

13. OHa Dato: 2006-12-14 Side: 13 Norway as an innovator of technology requires continued activity Business, work and optimism good for Northern Norway Territorial integrity strengthened by activity  In control of Norwegian territory  Russian territory very much a Russian territory Public interests in the North

14. OHa Dato: 2006-12-14 Side: 14 Norwegian petroleum expertise will enhance quality and responsibility in the Arctic Activity and continuity fundamental for Norwegian leadership Insignificant inconvenience for existing industries and no better place to develop sound environmental solutions National and multinational cooperation important Summing up