environmental report environmental efforts of The oil and gas industry with facts and figures

Transcription

1 2013 The environmental report environmental efforts of The oil and gas industry with facts and figures

2 foreword 04 summary 06 level of activity on The ncs 08 discharges To The sea Drilling Produced water Chemicals Discharges of oil Acute spills offshore operations and The marine environment Water-column monitoring Sediment monitoring emissions To The air Emission sources Emissions of greenhouse gases Short-lived climate forcers Emissions of CO Greenhouse gas emissions... from Norwegian and international... petroleum operations Power from shore Emissions of NO x The NO x agreement and... international obligations Emissions of nmvoc Emissions of CH Emissions of SO x waste Tables 44 Terms and abbreviations 66 The norwegian oil and gas association (formerly the Norwegian Oil industry Association) is an interest organisation and employer s association for oil and supplier companies related to exploration for and production of oil and gas on the Norwegian continental shelf (NCS). Norwegian Oil and Gas represents just over 100 member companies, and is a national association in the Confederation of Norwegian Enterprise (NHO).

3 Environmental report The environmental efforts of the oil and gas industry with facts and figures

4 1 A Foreword separate environmental report is published by the Norwegian Oil and Gas Association every year. This includes emission/discharge data and provides information on the industry s efforts and results in the environmental field.

5 The ambition of the petroleum industry on the NCS is to be a world leader for environmental protection, and to achieve ever better environmental results. That makes detailed reporting of emissions/discharges important, not least in order to measure trends and the attainment of the targets set. Emission/discharge reporting by the operator companies complies with government requirements specified in the activities regulations, and set out in detail in the guidelines from the Norwegian Climate and Pollution Agency (Klif) for reporting from offshore petroleum activities (TA-3010/2013). These require the operators to report annually in detail on emissions/ discharges from their operations on the NCS both planned and officially approved operational and accidental emissions/discharges. Data on emissions/discharges are recorded continuously in Environment Web, a joint database for Norwegian Oil and Gas, Klif and the Norwegian Petroleum Directorate (NPD). Based on information from Environment Web, the Norwegian Oil and Gas environmental report provides an updated overview of reporting in 2012 on emissions to the air and discharges to the sea as well as waste generation from NCS operations. The report also contains data and research results from long-term projects related to the marine environment and environmental monitoring. All fields with production facilities on the NCS are included. Emissions/discharges from the construction and installation phase, maritime support services and helicopter traffic are excluded. This English version is a translation of the Norwegian report. An electronic version and detailed emission/discharge data from each field on the NCS are published on the Norwegian Oil and Gas website. 5

6 2 Greenhouse Summary gas emissions from oil and gas activities are relatively stable, but substantially lower than the forecasts prepared a few years ago.

7 Norway s offshore industry tops the world table for recovery factors. At the same time, a number of Norwegian fields are entering a mature phase and the proportion of gas in NCS output is increasing. Production is thereby becoming more energy-intensive. Nevertheless, carbon emissions per unit produced are being kept at a very low level compared with global figures. Good progress with discoveries and persistently strong energy prices have laid the basis for a high level of activity on the NCS in recent years. The investment outlook in the petroleum industry is also promising for the next few years. New discoveries are to be developed, and a number of the older producing fields on the NCS are currently undergoing major upgrades. For the first time since 2008, overall production from the NCS increased from the year before. A continued decline in oil output was offset by record gas sales. Against the background of new discoveries, overall petroleum production is again expected to be able to rise somewhat over the next few years. Gas output has exceeded oil production since 2010, and is expected to account for about 50 per cent of petroleum sales from the NCS over the coming five-year period. Figures for 2012 show that carbon emissions were stable, while the volume of NO x released declined slightly. The oil and gas industry is a major contributor to the environmental agreement on NO x, which regulates the commitments made to the government by Norway s industry associations on reducing their overall NO x emissions. The fund model established by this deal ensures that emission reductions are implemented where they yield the biggest environmental gain per krone spent. Commitments in both first and second agreement periods have so far been met. A positive additional effect is that emissions of carbon equivalent will also be reduced by tonnes per annum, calculated from 2015, because of the nitrogen oxide projects implemented. Emissions of non-methane volatile organic compounds (nmvoc) stabilised from the year before, but have been reduced by almost 88 per cent since These substantial cuts have been achieved through investment in new facilities for removing and recovering oil vapour on storage ships and shuttle tankers. Methane emissions from installations have also declined. The petroleum industry has made substantial efforts to prevent discharges to the sea. So it is positive that these have been reduced to a very low level for environmentally hazardous chemicals. Norway s environmental authorities concluded in 2006 that the industry had reached the target of zero hazardous discharges for chemical additives set in Such discharges have now stabilised at this low level. The decline in acute discharges seen over the past five years is also continuing. That applies to both the volume spilt and the number of spills. Discharges of treated produced water are stable. They are not increasing despite aging fields and an increased scale of injection to improve oil recovery, and lie considerably below forecasts from the NPD. The oil content in produced water is per cent below the discharge threshold set by the environmental authorities, both nationally and internationally. The oil and gas industry carefully monitors the marine environment to investigate the possible effects of its discharges to the sea. This environmental monitoring has been conducted by independent scientists since the 1970s and is assessed by the government s panel of experts. The results provide a unique and extensive body of material open to research and more detailed analyses. Findings over the past 15 years show that the industry s activities have no effect on Nature s capacity for production and selfrenewal beyond the immediate vicinity. The conclusion is that Norway continues to have the world s cleanest petroleum production when account is taken of its high recovery factor and its environmental efficiency in using both chemicals and energy % 410 NOK reduction in red and black chemicals per tonne carbon tax for the petroleum industry from 2013 tonnes in reduced annual emissions of carbon equivalent from 2015 as a result of NO x projects 7

8 3 The Level of activity on the NCS oil and gas industry has completed another year with a high level of activity on the NCS.

9 Good progress with discoveries and persistently strong energy prices have laid the basis for a high level of activity on the NCS in recent years. Falling production curves are flattening out. This development has taken place at a time when Norway s traditional export industries have been hit by the international recession. The outlook for activity in the petroleum sector is also promising over the next few years. However, the industry must overcome the challenges of keeping down the growth in costs. The oil and gas industry has completed another year with a high level of activity on the NCS. Energy prices remained high despite ever weaker trends in the world economy. Substantial optimism prevails in the industry. The investment outlook points to a persistently high level of activity over the next few years. New discoveries are to be developed, and a number of the older producing fields on the NCS are currently undergoing major upgrades. A high level of activity bears the seeds of cost growth and reduced competitiveness. At a time when large parts of Norwegian industry exposed to competition are experiencing weak market prospects for their products, it is important that the petroleum sector contributes to keeping costs down. Overall output flattening out Production from the NCS totalled 226 million standard cubic metres of oil equivalent (scm oe) in 2012, up by 6.3 million scm oe (2.9 per cent) from the year before. This is the first time since 2008 that output rose from the previous year. According to the NPD, overall production should remain at roughly the 2012 level for the next five years. Oil: 1.5 million b/d However, oil production continued to decline to 89.2 million scm, or a daily average of just over 1.5 million barrels. That was 8.3 million scm or 8.5 per cent down from the year before. The NPD s five-year forecast predicts a further decline in 2013, followed by a possible slight rise. Average daily output in 2017 is estimated to be 1.6 million barrels, down by almost 50 per cent from the peak. Gas: half of future petroleum sales The decline in oil production during 2012 was more than offset by record gas sales. Gas output in 2012 came to billion scm, up by 13.2 billion scm or 13 per cent from the year before. Norway increased its share of a weak European gas market. After strong growth since the start of the previous decade, gas production exceeded oil output in 2010 and will account for about 50 per cent of petroleum sales from the NCS in the next five-year period. Condensate production totalled 4.5 million scm in 2012, on a par with the year before. This figure is expected to decline gradually over the next five years. NGL production totalled 17.7 million scm, compared with 16.3 million in 2011, and has more than doubled since The NPD expects a further increase to just over 20 million scm in Exploration high, finding rate good The level of exploration activity on the NCS has been high in recent years. Forty-two exploration wells were spudded during 2012, and 41 completed. The wells spudded included 26 wildcats and 16 for appraisal. Exploration activity in 2012 contributed to 13 new discoveries, which represented a finding rate of 50 per cent. Five of the finds were in the North Sea, five in the Norwegian Sea and three in the Barents Sea. Resources in these new discoveries are estimated at 132 million scm oe, corresponding to 58 per cent of 2012 output. Viewed as a whole, new discoveries during the past five years corresponded to no less than 79 per cent of production in the same period. Resource base upgraded The NPD conducted a review of undiscovered resources during 2012 which combined with new discoveries and reassessments of earlier assessments increased the overall estimate of resource on the NCS from 13.1 billion scm oe to 13.6 billion. This figure includes oil and gas which has been sold and delivered. The resource estimates cover the same geographical area as the analyses conducted in 2010 and earlier. That excludes the Norwegian share of the former area of overlapping claims in the south-east Barents Sea as well as the waters around Jan Mayen. An updated resource estimate was also presented by the NPD for these areas in February 2013, which helped to boost estimated undiscovered resources on the NCS by roughly 15 per cent. That corresponds to roughly 390 million scm oe. Activity high on the NCS According to investment figures for the petroleum sector from Statistics Norway, NOK billion was invested in 2012 up by NOK 26.2 billion from the year before. The 2012 increase related to field developments and producing fields, while exploration, land-based operations and pipeline transport showed a decline. Investment figures for the first quarter of 2013 indicate a continued high level of activity on the NCS. The oil companies expect overall capital spending for the year to be NOK billion. Field developments, producing fields and exploration activities will continue to make the principal contributions to boosting investment in The petroleum sector thereby confirms its role as the most important engine driving the Norwegian economy. 9

10 New acreage still important The government announced the 22nd offshore licensing round on 26 June 2012, offering 86 full or part blocks in the Barents (72) and Norwegian (14) Seas. Advance nominations covering 228 full or part blocks had been received by the Ministry of Petroleum and Energy from the companies, of which 107 received two or nominations. A record 181 blocks were nominated for the Barents Sea. At the deadline of 4 December 2012, the ministry had received applications from 36 companies. It aims to award new licences before the summer vacation in On 15 February 2013, the ministry announced the annual round for the awards in predefined areas (APA) covering mature regions of the NCS. The predefined area has been enlarged with six blocks. All lie in the Norwegian Sea close to Aasta Hansteen, and are based on the management plan for this part of the NCS. The deadline for applications is 11 September 2013, and plans call for new licences to be awarded in early The APA scheme contributes to a high and stable level of activity on the NCS, and its enlargement must be viewed as positive. At the same time, Norwegian Oil and Gas believes that the APA must be enlarged annually in order to include all areas close to discoveries including those currently non-commercial and all areas where geological understanding is so good that awards can be made with a simpler procedure and without regional interpretations. Figure 01 Petroleum production by region Million scm oe Figure 02 Investment in the oil sector by category (NOK bn) Source: NPD Source: Statistics Norway Estimate for 2013 from Statistics Norway s investment survey for the oil industry, first quarter North Sea Norwegian Sea Barents Sea Field development Producing fields Pipeline transport 10 Land-based operations Exploration and conceptual studies

11 Figure NCS resource growth and production Million scm oe Source: NPD Resource growth Overall petroleum production 11

12 4 Both Discharges to the sea operational and acute discharges to the sea from oil and gas operations on the NCS are declining.

13 4.1 Drilling Generally speaking, operational discharges to the sea are on the way down. That includes discharges of produced water, contrary to forecasts predicting the opposite. However, greater exploration activity means that more drilling waste is being sent ashore for final treatment, and that discharges of water-based drill cuttings have risen. Both the number of acute oil spills and the total volume discharged in such incidents are falling. Drilling operations generate two types of waste drill cuttings, which are rock drilled from the well, and used drilling fluids. The fluid has many functions, including bringing up drill cuttings, lubricating and cooling the drill bit, preventing the borehole from collapsing and keeping pressure in the well under control. Drill cuttings will always be contaminated with used fluid. The industry currently utilises two types of drilling fluids: oil- and water-based. Ether-, ester- or olefin-based synthetic fluids were also utilised earlier, but have been little used in recent years. Discharging oil-based or synthetic drilling fluids, or cuttings contaminated with these, is prohibited if the oil concentration exceeds one per cent by weight in other words, 10 grams of oil per kilogram of cuttings. Used oil-based drilling fluids and cuttings are either shipped ashore for acceptable treatment or injected in dedicated wells beneath the seabed. About tonnes of drill cuttings contaminated with oil-based drilling fluids were injected in 2012, up by 18 per cent compared with the year before. Problems with certain injection wells in recent years mean that the proportion of injected cuttings has declined markedly. A number of measures have been launched to avoid similar problems in the future, and new injection wells have been taken into use. Water-based drilling fluids usually contain natural components, such as clay or salts. Such components of fluids will be listed as green chemicals in the classification system applied by Klif. Green substances pose little or no risk to the marine environment and are on Ospar s Plonor list. The government permits the discharge of used water-based fluids and drill cuttings upon application. The impact of these discharges is tracked through extensive environmental monitoring. Since 2011, the discharge regime for drill cuttings and drilling fluids has been the same for the whole NCS. Special requirements can be imposed if required. Discharges of water-based drill cuttings rose substantially in because of increased exploration activity on the NCS. They totalled about tonnes in 2012, which means that the decline from the peak year of 2010 continued. Figure Injection of drill cuttings contaminated with oil-based drilling fluids (tonnes) Figure Injection of drill cuttings when drilling with water-based fluids (tonnes)

14 4.2 Produced water Produced water has been in contact with the geological formations for millions of years, and accompanies oil up to the platform for separation and treatment before being discharged. About 131 million cubic metres of produced water were discharged on the NCS in 2012, up by two million cubic metres from the year before (figure 06). Discharges fell markedly from 2007 to 2009, and have subsequently lain around 130 million cubic metres per year. Almost 33 million cubic metres of produced water, corresponding to some 20 per cent of total water production, were injected in The proportion of produced water injected fell briefly in 2007, but has since lain around 30 million cubic metres per year. Figure Discharges and injection of produced water (million cubic metres) The average oil concentration in produced water discharges was 11.7 milligrams per litre in That was far below the official ceiling of 30 milligrams per litre. The trend for the concentration of dispersed oil is presented in figure 07. A total of tonnes of dispersed oil was discharged to the sea in 2012, up by 3.9 per cent from the year before. Discharges of produced water normally rise with the age of a field, because the ratio of water to oil in the wellstream the water cut steadily increases. Water injection, used to maintain reservoir pressure and boost oil recovery, can also contribute to a higher volume of produced water. The industry is working continuously to reduce discharges. According to ongoing environmental monitoring, no environmental impact can be identified from discharging produced water Produced water discharged Produced water injected 14

15 Figure Average oil concentration in produced water (mg/l) Figure Ratio between produced water and oil Regulatory requirement Concentration (mg/l) of dispersed oil in produced water Produced water/oil 15

16 4.3 Chemicals Chemicals are assessed on the basis of their environmental properties. Today s criteria are specified by the government in the guidelines for reporting from offshore petroleum operations (Klif, TA-3010, table 01). A dedicated flow diagram has been developed for environmentally hazardous substances to determine the category they should be reported in. As a general rule of thumb, chemical additives are divided by Klif into four categories in accordance with the classification in chapter 10 of the activities regulations: 1) Green Chemicals considered to have no or very limited environmental impact. Can be discharged without special conditions. 2) Yellow Chemicals in use, but not covered by any of the other categories. Can normally be discharged without specified conditions. Figure 09 Chemical discharges broken down by Klif s colour coding (2012) 3) Red Chemicals which are environmentally hazardous and should therefore be replaced. Can be discharged with the permission of the government, but must be given priority for substitution. 4) Black Chemicals which are basically prohibited for discharge. Permits are issued only in special circumstance where it is crucial for safety, for instance. Discharges of chemical additives totalled tonnes in Green chemicals accounted for 91.5 per cent of this, yellow for about 8.4 per cent, and red and black for and per cent respectively. See figure 09. Roughly tonnes of chemicals were injected below ground. The operators have worked purposefully to replace chemicals which have poor environmental properties with more environmentally acceptable alternatives. This means that over 99.8 per cent of the chemicals in the red and black categories have been phased out. Discharges of black chemicals, for instance, fell from 228 tonnes in 1997 to 2.4 tonnes in Black chemical discharges were slightly higher in 2012 than the year before because of tests with fireextinguishing chemicals on a new offshore installation. Work on replacing these is under way. Correspondingly, red chemicals fell from almost tonnes to 7.5 tonnes. Ever since , the government has considered the zero discharge goal for chemical additives to have been reached. Klif assessed zero discharge work most recently in The industry is considering various measures which could help to reduce environmental risk, in part through the Ospar-OIC and a riskbased approach (RBA) to naturally occurring chemicals. The RBA aims to describe the risk related to discharging various substances which occur naturally. Green 91.5% Yellow 8.5% Black Red % % Colour-coding of chemicals has existed for more than a decade. Progress in substituting chemical additives over the period presented in figure 10 makes it difficult to envisage substantial reductions for red and black chemicals in coming years. So it will also be important to utilise environmental monitoring as a tool for assessing the extent to which discharges represent significant pollution of the environment. The industry s goal is zero environmental harm as a result of petroleum operations, and its monitoring documents that discharges do not damage nature s capacity for production and selfrenewal. 16

17 table 01 klif s table Discharge Klif s colour Category 1 category Discharge Category 1 Klif s colour category Water Substances in yellow category: Substances on Ospar s Plonor list Green Substances covered by Reach annexes IV and V 6 99 Yellow Substances with no test data 0 Black Hormone disruptors 2 1 Black Substances with biodegradability > 60% 100 Yellow Substances with biodegradability 20-60% Substances thought to be, or which are, hazardous to genes 1.1 Black or reproduction 3 Sub-category 1: expected to biodegrade fully 101 Yellow List of prioritised substances in result objective 1 (priority list), proposition no 1 ( ) to the Storting 2 Black Sub-category 2: expected to biodegrade to environmentally non-hazardous substances 102 Yellow Biodegradability < 20% and log Pow 5 4(4) 3 Black Biodegradability < 20% and toxicity EC 50 or LC mg/l 4 Black Chemicals on Ospar s taint list 5 5 Red Two out of three categories: biodegradability < 60%, log Pow 3, 6 Red EC 50 or LC mg/l 4 Inorganic and EC 50 or LC 50 1 mg/l 7 Red Sub-category 3: expected to biodegrade to substances which could be environmentally hazardous 1 A description of the category is provided in the flow diagram. Category in table 5-1 has been related to category in table 6-1 to ensure correspondence with reported figures in the two tables. 2 Removed from the black category in the activities regulations. 3 Substances hazardous to genes or reproduction are understood to mean mutagen categories (Mut) 1 and 2 and reproduction categories (Rep) 1 and 2, see appendix 1 to the regulations on labelling, etc, of hazardous chemicals or self-classification. 4 Data for degradability and bioaccumulation must accord with approved tests for offshore chemicals. 102 Yellow 5 Removed from the red category in the activities regulations. 6 Commission regulation 987/2008. Klif must assess whether the substance is covered by annex V. Biodegradability < 20% 4 8 Red Figure 10 Historical development of green, yellow, red and black chemical discharges (tonnes) Green chemicals Yellow chemicals Red chemicals Black chemicals 17

18 18

19 4.4 Discharges of oil Operational discharges of oily water from petroleum activities on the NCS have three principal sources. Produced water: water which has been in contact with the geological formations for millions of years, and which accompanies the oil up to the platform. It contains various inorganic salts, heavy metals and organic substances. Small proportions of the salts give off low-level radioactivity. Although the produced water is treated before discharge, it will contain minor residues of oil/condensate as well as dissolved substances. Oil discharges can also occur in wash water used to clean process equipment, in connection with accidents or from deposition of oil droplets released by flaring in connection with well testing and workovers. Figure 11 Total discharges of oil to the sea from produced, displacement, drain and jetting water totalled tonnes in 2012, compared with the year before. Dispersed oil in produced water discharges represented the largest volume, at tonnes in Historical development of oil discharges to the sea from various sources (tonnes) Displacement water: seawater used in the storage cells for crude oil on some platforms. This has a small contact area with the crude and a relatively low content of dispersed oil. Discharge volumes depend on the level of oil output The marked peak in 2007 reflects the acute spill of about scm from the Statfjord loading buoy. Drain water: rain and wash water from the platform decks which could contain chemical residues. Discharges of drain water represent a small part of the total volume of water released to the sea Water-jetting also occurs. Oily sand and impurities accumulate in separators and must be flushed out from time to time by such jetting. Some oil contamination remains on the particles after the water has been treated. The amount of oil released to the sea from water jetting is marginal Dispersed oil in produced water Displacement, drain and jetting water Acute spills 19

20 4.5 Acute spills Acute spills are defined as unplanned emissions/discharges which occur suddenly and are not covered by a permit. Possible environmental consequences of such releases will depend on the environmental properties and volume of the substance emitted/spilt, and when and where the incident occurs. Norway s oil and gas industry pays great attention to adopting measures to prevent incidents which could lead to acute emissions/discharges. These are classified in three principal categories: oil: diesel, heating, crude, waste and others chemicals and drilling fluids acute emissions to the air. Oil spills in 2012 involved 122 incidents, of which only four were larger than a cubic metre and 26 were above 50 litres. The total volume of oil from all acute spills during the year was 16 cubic metres. The number of acute oil spills on the NCS increased somewhat in , reflecting a rise in incidents smaller than 50 litres. A steady fall in the total number has taken place since A clear declining trend is evident for spills larger than 50 litres from as far back as Acute spills of chemicals have been stable at incidents over the past decade, but rose to 162 in That has been followed by a steady decline, to 148 in The overall volume of all types of acute discharge to the sea on the NCS was 381 cubic metres in Large acute chemical spills in 2007, 2009 and 2010 came from injection wells. Injection has been used to reduce discharges from oil and gas production on the NCS for several decades. It offers substantial environmental gains and can be cost-effective compared with transport to land and deposition at approved waste treatment facilities, for example. However, a number of leaks from injection wells have been discovered, particularly in The volume involved was calculated on the basis of assumptions that the wells had been leaking for many years, while the volume was specified for a single year. A full review of all fields which utilise injection was therefore conducted, and a number of measures instituted. Discharges from injection wells have now ceased. Improved preliminary investigations of the sub-surface and other measures adopted mean that the proportion of injected waste is likely to rise again in coming years. The Kristin platform. 20

21 Figure Total acute oil spills on the NCS Figure Total volume of acute spills broken down by oil and chemicals (cu.m) Chemicals are mainly drill cuttings Total exceeding 50 litres Total acute spills Figure Acute chemical spills on the NCS Chemicals Oil 21

22 5 Offshore operations and the marine environment Environmental monitoring involves the systematic collection of data using verifiable methods. The goal is to document the condition of the marine environment and its development.

23 The oil and gas industry carefully monitors the marine environment in order to investigate the possible effects of its activities and discharges to the sea. Monitoring of sediments has been under way since the 1970s, and its results are collected in a detailed database which contains a unique body of material open to research and more detailed analyses. Monitoring is conducted by independent and qualified consultants in accordance with government requirements and standards. It involves the systematic collection of data using verifiable methods, where possible on the basis of a hypothesis about the possible impact of the discharges. This work consists today of sediment and water monitoring in addition to specific studies in areas with such features as coral reefs. Environmental monitoring aims to document the condition of the marine environment and its development as a consequence both of human impacts and of natural changes. Considerable research is also being conducted by individual companies and the petroleum sector as a whole to develop monitoring methodologies and an understanding of the impact of industry discharges on the marine environment. In addition comes substantial work on developing methods and procedures for preliminary studies in order to avoid physical damage to such features as coral reefs and sponge colonies. The scientists have concluded that no damage to coral reefs has ever been identified as a result of petroleum operations on the NCS. This work is now being extended to cover sponge colonies and various sponge species. Research programme The research programme on long-term effects of discharges to the sea from petroleum-related activities ( ) (Proof and Proofny) in the Oceans and Coastal Areas programme at the Research Council of Norway has contributed much new knowledge about the significance of discharges from offshore petroleum operations. Sixtyfive projects have been implemented so far. A common denominator for surveys of biological responses is that these have only been identified in concentrations of produced water of 0.1 to one per cent in other words, in the immediate vicinity of the discharge site. Extremely sensitive methods also make use of biomarkers, which can reveal whether organisms have been exposed to discharges. However, no link has been established between detection in a biomarker and effects on individuals or populations. Proofny has concluded that exposure to alkylphenols from produced water on the NCS is too low to cause reproductive effects of any significance in fish stocks. Other conclusions include the following: Nothing suggests that Arctic and sub- Arctic marine organisms are more vulnerable to discharges than similar life forms found elsewhere on the NCS. Environmental monitoring results have reduced concerns about the effect of oilpolluted waste deposited in earlier periods. The studies show that effects on indicators for health, function and reproductive ability can be demonstrated in laboratories for individual fish and invertebrates when using higher concentrations of components in produced water and/or when exposure time is unrealistically long (months) compared with natural conditions offshore, where exposure will be limited to a matter of hours. The industry will continue to support Proofny until the programme concludes at the end of Plans are being drawn up by the Research Council for a new programme of environmental and marine research called Promamil in order to maintain the scientific effort for coastal and sea areas. That includes the petroleum sector. Norwegian Oil and Gas will consider how it can contribute to this work. 23

24 5.1 Water-column monitoring Monitoring the water column has been under way since the late 1990s, and covers both impact and condition. This work is conducted in a way which allows the risk of impacts to the pelagic environment as a result of discharges from petroleum operations to be verified. The scope of the monitoring must be proportionate to the expected risk. Impact monitoring Monitoring of impacts is conducted every year and will as a minimum embrace fish and mussels. Since 2003, these studies have primarily utilised organisms in cages (mussels and fish) with the use of biomarkers and/ or passive sampling (which accumulates organic environmental toxins). This work was done during 2012 on the Troll field in the North Sea with the aid of underwater rigs containing mussels and passive sampling devices at increasing distances from the discharge site more specifically 500, and metres, with reference stations 50 kilometres away. A total of 13 stations were positioned for about six weeks. Current meters and conductivity, temperature and depth (CDT) sondes were also installed. An enhanced level of certain oil components was identified in mussels 500 metres from the discharge point compared with the station metres away. The levels were comparable with the 2011 survey on Gullfaks C, but higher than those on Ekofisk in 2006, 2008 and Mussels positioned and metres away had values at the background level for the North Sea. This confirms earlier findings that discharges are rapidly diluted to the background level. Effects can be detected where the concentration is above about one per cent, usually metres from the discharge. Biomarker levels were moderately higher at the closest stations and declined with increasing distance, in line with earlier impact monitoring results. The investigation concluded that biological effects were not observed in mussels around the platform. Monitoring of naturally occurring 226 Ra in mussels yielded results at the background level, which indicates that no bioaccumulation occurs in these organisms. Condition monitoring Such surveys are conducted with fish at triennial intervals, most recently in Findings include: As before, levels of oil components (NPD and PAH) in cod and haddock muscle were below the detection limit for the analysis. The sum of PAH (EPA 16 ) in haddock livers was higher in the reference area on the Egersund Bank (32 ng/g) than in the Tampen area. This could indicate that PAH levels are relatively low on Tampen, where oil industry discharges are present. No elevated levels of bile metabolites in haddock on Tampen, compared with the Egersund Bank. The DNA adduct level in haddock varied from about five times 10-9 nucleotides on the Egersund Bank to seven times 10-9 nucleotides on Tampen. This level is lower than the one reported from a data set in 2002 (20 adducts times 10-9 nucleotides). No differences in the liver somatic index, LSI or PAH metabolite levels in bile from fish on Tampen and in the reference area. These results show that oil and gas activities in the area do not affect food safety aspects of the fish species investigated. Differences between the results from Tampen and the reference station on the Egersund Bank are also small. The report indicates that more attention should perhaps be paid to PAH discharges. A number of sources may contribute to PAH levels in the North Sea. This could be one of the topics addressed in the 2014 condition monitoring study. 24

25 5.2 Sediment monitoring Monitoring of the environmental condition of seabed sediments around Norwegian offshore installations has been under way since the late 1970s. Field-based surveys were conducted annually until Thereafter, monitoring around individual fields was incorporated in a regional programme which has been pursued until the present time. Before any field is brought on stream, an investigation must be conducted to establish the base condition. Each region and field is investigated every third year to establish the physical, chemical and biological condition of the sediments. The monitoring is conducted by independent accredited consultants, and detailed guidelines ensure that results from different surveys are comparable across time and space. These results are assessed by the government s panel of experts, and made available in a common database operated by Norwegian Oil and Gas. Known as the MOD, this database is open to the general public and to researchers. The monitoring programme is among the most extensive conducted regularly on the North Atlantic seabed, and covers an estimated stations on the NCS. Of these, about 700 are in the North Sea. Once the production phase has been completed, two further monitoring surveys are conducted at triennial intervals. The regional surveys in 2012 covered region II, Ormen Lange in region V and region VI. A limit of significant contamination (LSC) is established in the monitoring programme where the measured levels over various discharges exceed the background level for the region. The LSC is not a fixed value, but varies from region to region and between different times. The scientific findings Region II Sleipner The THC level was by and large lower than or on a par with The barium level had risen since 2009 on most fields in the region. No fauna were found to have been disturbed on any of the fields as a result of petroleum operations. The overall area with THCcontaminated sediments (>LSC) in the region was two-six square kilometres. Region V Ormen Lange Generally speaking, the THC content was on a par with the two previous investigations. The level varied from about nine to 23 mg/kg. The estimated area with THC-contaminated sediments (LSC=20 mg/kg) in the region was 17 square kilometres. Fauna on Ormen Lange were undisturbed by petroleum activities in the area. Region VI Halten Bank Samples were acquired from 343 stations. The estimated maximum area with THC-contaminated sediments (>LSC) had increased marginally, from 49 to 50 square kilometres. The fauna surveys recorded a total of individuals divided between 580 taxa (species or species groups). The bristle worm Chaetozone sp, a known indicator for organic pollution, was among the 10 most dominant taxa. The reason for this is unknown and cannot be related to petroleum activities in the region, since the change was registered generally across the whole area. Since the previous survey in 2009, the total area of fauna disturbance in region VI had declined from 3.29 to 0.73 square kilometres. Environmental monitoring is an important tool for describing possible environmental impacts of discharges to the sea, both in the water column and on the seabed. The industry wants the impact of its discharges to be insignificant in the natural environment, and to cause no damage to the natural capacity for production or self-renewal. 25

26 6 Emissions to the air Power generation fuelled by natural gas or diesel oil is the main source of carbon and NO x emissions.

27 6.1 Emission sources Emissions to the air from the oil and gas industry consist of waste gases which contain CO 2, NO x, SO x, CH 4 and nmvoc from different types of combustion equipment. In most cases, emissions to the air are calculated from the amount of fuel gas and diesel oil used on the facility. The emission factors build on measurements from suppliers, standard figures produced by Norwegian Oil and Gas on behalf of the industry, or field-specific measurements and calculations. Emission sources The main sources of emissions to the air from oil and gas activities are: fuel gas exhaust from gas turbines, engines and boilers diesel exhaust from turbines, engines and boilers gas flaring combustion of oil and gas in connection with well testing and well maintenance. Other sources of hydrocarbon gas (CH 4 and nmvoc) emissions are: gas venting, minor individual leaks and other diffuse emissions from the installation evaporation of hydrocarbon gases from storage and loading of crude oil offshore. Power generation using natural gas and diesel as fuel is the main source of emissions of CO 2 and NO x. The level of these emissions depends mainly on energy consumption by the facilities and the energy efficiency of power generation. The second largest source of this emission type is gas flaring. This takes place to only a limited extent, pursuant to the provisions of the Petroleum Activities Act, but is permitted for safety reasons and in connection with certain operational problems. SO x emissions primarily derive from the combustion of sulphur-containing hydrocarbons. Since Norwegian gas is generally low in sulphur, diesel oil is the principal source of such emissions on the NCS. Low-sulphur diesel oil is accordingly used. Figure 15 presents emissions to the air Figure Emissions to the air on the NCS compared with the international average 100 kg per scm oe produced on the NCS compared with international averages. Norwegian production of oil and gas causes far lower emissions per unit of oe produced than in other countries, thanks to strict requirements and the industry s strong focus on continuously reducing the amounts it releases. Kg per scm oe produced Source: OGP and Environment Web The most important sources of CH 4 and nmvoc emissions are offshore storage and loading of crude oil. During tank filling, volatile hydrocarbons vaporise into the tank atmosphere and mix with the inert gas added for safety reasons to eliminate the risk of explosion. Emissions occur as this mix is vented to the air when displaced by the entering crude oil CO 2 NO x CH 4 nmvoc SO 2 NCS 2011 International average for oil-producing countries 2011 All figures are from 2011 because international figures for 2012 were not available in May

28 6.2 Emissions of greenhouse gases The UN has been the arena for international climate negotiations since the 1990s. A climate convention adopted in Rio de Janeiro in 1992 defined the principal goals for international work in this area. Climate summits are held annually with all signatories to this convention. The 2013 meeting will take place in Bonn. The first legally binding climate agreement was negotiated at Kyoto in Japan in This protocol requires that the industrialised countries collectively cut their greenhouse gas emissions by at least five per cent in compared with the 1990 level. A large number of developing countries are also signatories to the protocol, but do not have binding emission ceilings. Figure Emissions of carbon equivalent on the NCS million tonnes The 2011 climate summit at Durban in South Africa agreed in extra time on a road map towards a new global climate agreement embracing all countries. This is due to be negotiated by 2015 and to come into force in The Kyoto protocol has been extended with a second commitment period for the EU, Belarus, Iceland, Kazakhstan, Norway, Switzerland and Ukraine. The protocol covers emissions of CO 2, CH 4, nitrous oxide (N 2 O), perfluorocarbons (PFCs), hydrofluorocarbons (HFCs) and sulphur hexafluoride (SF 6 ). Oil and gas operations on the NCS release CO 2, CH 4 and an insignificant, unregistered quantity of N 2 O. Greenhouse gas emissions are registered in tonnes or converted to carbon equivalent in accordance with their global warming potential. CH 4 and nmvoc have a limited lifespan and are oxidised to CO 2 in the atmosphere. These short-lived climate forcers (SLCFs) accordingly have a double warming effect. Indirect carbon emissions resulting from oxidation are therefore included in the greenhouse gas account. Total emissions of greenhouse gases from the NCS amounted to 13.1 million tonnes of carbon equivalent in 2012, on a par with the 2011 figure

29 6.3 Short-lived climate forcers Short-lived climate forcers (SLCFs) are on the political agenda both in Norway and internationally. Globally, work is being pursued in a number of initiatives through the Climate and Clean Air Act Coalition to Reduce SLCF, with the oil and gas directive having made the greatest progress. Ambitions are also enshrined in the Svalbard declaration of 2012 for the Nordic countries, the Arctic Council s Tromsø declaration of 2009 involving eight Arctic nations, and the revised Gothenburg protocol of On behalf of the Ministry of the Environment, Klif is working on a Norwegian action plan for reducing SLCFs which will include ozone, methane as a greenhouse gas and soot. However, other SLCFs are also relevant. SLCFs comprise particles and gases which are characterised by their big impact on climate and health, but short lifespan in the atmosphere. Reducing SLCF emissions would therefore have a swift effort on both climate and health. Where emissions occur is also very significant. Growing attention is being paid to flaring emissions and impacts related to this type of substance. Establishing petroleum activities in Arctic regions increases the signifi- cance of emissions from flaring as a contributor to climate change because of soot being deposited on snow and ice. On that basis, Klif implemented a project on evaluating flaring strategy, techniques to reduce flaring and its emissions, emission factors and methods for determining emissions to the air from flaring. Running from the autumn of 2012 to the spring of 2013, this work has embraced flaring systems offshore and on land. The aim has been to learn about: current flaring systems/technology and criteria for selecting these emission of NO x, CO2, SO2, methane, nmvocs and particles methods and techniques to reduce flaring and emissions to the air, emission reductions achieved, and opportunities for and constraints on action. Attention has also been given to company flaring strategies, and how these relate to company energy management and to emissions of greenhouse gases and other components. The companies have contributed to the project with extensive information from their own operations. 29

30 6.4 Emissions of co 2 Carbon emissions from operations on the NCS in 2012 totalled 12.4 million tonnes, a slight increase from 12.3 million in The petroleum industry has adopted measures which yielded documented emission reductions of more than 0.5 million tonnes in Figure 17 shows carbon emissions from operations on the NCS and the distribution of emissions by source in The biggest source of carbon emissions from oil and gas operations is turbines on offshore installations. According to Statistics Norway, Norwegian emissions in carbon equivalent totalled 52.9 million tonnes in 2012, down by around 0.8 per cent from the year before. The oil and gas industry accounted for about a quarter of this figure, roughly the same proportion as in The breakdown by source changed little from 2011, and specific emissions from flaring were back at a stable level after the fluctuations caused by the start-up of the Hammerfest LNG plant and changes to conversion factors. Figure 18 presents the historical trend for flare gas consumption and associated carbon emissions, while figure 19 presents the historical development of direct and indirect carbon emissions per volume of hydrocarbons delivered in Specific carbon emissions show a weakly rising trend, which reflects the rising water cut in wellstreams on aging fields as well as the growing proportion of gas requiring energy for compression before transport to Europe. The industry is working continuously to reduce greenhouse gas emissions by enhancing energy efficiency and following up ambitions from the Konkraft reports (2007). An overall emission cut of one million tonnes per annum for the offshore oil and gas business in 2020 as also estimated by the Climate Cure (2010) is within reach. Heavy investment is also being made in technology development. Very interesting things are happening here in such areas as subsea solutions which substantially reduce energy consumption and thereby greenhouse gas emissions. Exports of such cleaner technology will help to reduce global greenhouse gas emissions, and recovery from the NCS will also be improved while maintaining low emissions per unit produced. Figure 17 Direct carbon emissions (million tonnes) and by source 12.4 Mill tonnes 14.0 Breakdown by source turbines 79.4% % 7.9 % engines flare % well testing boilers 1.9%