Page 7 - NorthAmOil Week 33 2021

NorthAmOil COMMENTARY NorthAmOil
Kelly went on to explain that this can be applied to initiatives such as standardisation and digitalisation. An example of such initiatives being pursued on the ground is BP’s Mad Dog 2, where, in addition to three years spent stand- ardising all aspects of the project, a complete dynamic digital twin of the floating production unit (FPU) was also developed.
“The skills that I have are not going to per- fectly match what’s needed in the future,” said Kelly. “But the key one is about that agile mind- set, and about being open to learn new things, and just recognising the world is changing.”
Carbon intensity
Equinor, for its part, is focused on reducing the carbon intensity of its global oil and gas pro- duction. According to Equinor’s US country manager, Chris Golden, who spoke during the same session as Krieger, the Norwegian com- pany is targeting a carbon intensity decrease to 6 kg per barrel by 2025, from 8 kg per barrel currently. This is already less than half the global average of 17 kg per barrel, according to Golden.
Over the longer term, the company expects to focus more of its investments on renewables and low-carbon ventures, with 50% of its capital expenditure going towards the energy transition by 2030.
“We’ve been very clear that we will not pur- sue growth for growth’s sake,” Golden said. He added that the company believes it has the tools to create returns and build a renewables busi- ness that is profitable.
Like BP, Equinor has also made various announcements recently that illustrate how oil and gas continue to play a role in its portfolio, especially in the Norwegian North Sea. In June, it brought the Martin Linge oil and gas field online, touting the project’s low carbon dioxide (CO2) emissions as it is powered from the shore.
The company also recently received approval from the Norwegian authorities to develop the Breidablikk field, which is due to enter service in 2024. Additionally, together with its partners Petoro, Vår Energi and TotalEnergies, Equinor decided to develop the Lavrans discovery and the Kristin Q-discovery, part of the Kristin field. The development plan for these discoveries has been submitted to Norwegian authorities.
Among Equinor’s new low-carbon initiatives, meanwhile, is a growing push into hydrogen and offshore wind. The company signed a memo- randum of understanding (MoU) with US Steel in June to explore the potential for developing a hydrogen and carbon capture and storage (CCS) hub in the US’ Appalachian Basin.
Earlier this year, Equinor partnered with BP to develop wind power offshore the US East Coast. Under the partnership, the companies will develop up to 4.4 GW of wind capacity through two projects – Empire Wind and Bea- con Wind – as well as pursuing further growth in the US offshore wind market.
Golden said this week that the company was also interested in offshore wind in California.
What next?
The comments from both BP and Equinor contained no major surprises, rather marking the reiteration of the companies’ previously set out energy transition goals. Nonetheless, they illustrate how energy transition remains at the forefront of their strategies, and what concrete steps they are actually taking in order to achieve their targets.
The shift away from oil and gas will take time to fully play out, especially given that the compa- nies are currently engaged in developing various new upstream projects in the US, Norway and elsewhere. However, it is becoming increasingly more apparent that such a shift is underway.™
Among Equinor’s new low-carbon initiatives, meanwhile, is a growing push into hydrogen and offshore wind.
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