The Paris climate deal can only be met with rapid change, according to Statoil’s Energy Perspectives Report.
“In order to achieve the objectives of the Paris climate agreement we need fast changes in the electricity sector and in private car transport, in addition to a strong energy efficiency improvement in all sectors,” said Statoil’s chief economist Eirik Wærness.
“Even with a rapid increase in new renewable energy the oil and gas demand will only be slightly lower than today’s level in 2040. To compensate for falling global production from existing fields, considerable investments in new oil and gas production volumes will be needed, which in combination will correspond to 15-30 times the current total output on the Norwegian continental shelf.”
The report outlines three possible scenarios – reform, renewal and rivalry – each with varying degrees of change.
The scenario outlining the most ambitious energy and climate goals is Renewal, which assumes that nine out of 10 new private cars sold in 2040 will be hybrids or electric cars.
“This will require a radical and coordinated effort and transformation of the transport and electricity sector, driven by efficiency efforts, technology development, markets, consumer behaviour and not least politics. There may be cause for questioning whether the investments in oil, gas and renewable energy in the time ahead will be sufficient to meet the demand,” said Wærness.
Chief executie Eldar Sætre added: “The Paris climate agreement is an important starting point for necessary changes, but they are not sufficient, according to the 2016 Energy Perspectives report. Statoil will be a driving force for introducing stronger measures and faster change, which are vital for us to be able to produce the energy that the world needs in a sustainable manner.
“Emissions must be reduced, while at the same time energy must be provided to a growing population, where a rising number of people are finding their way out of poverty.
“Statoil is well positioned for being an important energy provider also in a low-carbon society. Our oil and gas production has the lowest emission level in the world, and we are raising our ambitions to maintain our leading position. We are also gradually developing a profitable business in renewable energy and other low-carbon solutions.”
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