Statoil is the Norwegian oil and gas production company who are behind the highly controversial Corrib pipeline in County Mayo, Ireland in conjunction with Shell. It also heavily involved in gas and power generation, not only in Norway but also globally. By Joshua Brooke.

In 1972 the company was founded as 'Den norske stats oljeselskap A.S’; known in English as 'Statoil'. Statoil was listed on the Oslo Stock Exchange on 18/06/2001. A Statoil spokesman said during the opening 'The listing is a milestone for the group. We are now entering a new era.'

Statoil is Norway's largest oil and gas company, with 25,400 employees and operating in 31 countries[1]. Statoil claims to have a 'powerful system for global oil trading'[2] with offices in Stavanger, London, Stamford, Connecticut USA and Singapore.

It controls 60 per cent of all Norway’s oil and gas production, and international production is increasing sharply[3]. Some 650,000 barrels per day are extracted from the Norwegian continental shelf rigs and it trades some 2 million barrels per day, both crude and light oil[4]. Only Iran and Saudi Arabia's national oil companies trade more crude oil than Statoil.[5]

In 2005 Statoil reported post tax annual profits of £2.58 billion. Revenues hit a record £33 billion, powered by a record breaking increase in oil production.[6]

Statoil claims it is making efforts to reduce the environmental impact of its refinery operations in Norway and abroad and to have invested in desulphurisation and other environmental improvements to product quality, mainly on establishments in Norway. The company's web page makes it clear that this spending has helped Statoil 'to deliver to environmentally aware markets.'[7]

Statoil's oil terminal at Kollsnes near Bergen was built on the environmentally fragile Norwegian west coast, as close as possible to the North Sea oil installations, also very close to fjords, very popular with tourists, that were designated a United Nations World Heritage site in July 2006.[8] Privately local residents have raised concerns about the impact that the terminals are having on both farming and fishing. This has not been expressed publicly as there is a very strong fear that if they did there could easily be ‘pressure’ applied on them to not speak out loudly.

Statoil's terminal at Hammerfest, Melkøya, has also raised considerable environmental fears. This gas power facility, that opens summer 2007, will generate pollution equivalent to 375,000 cars, 24 hours a day.[9] The emissions from the plant will be released directly into the atmosphere, just outside central Hammerfest. Local residents interviewed by the Norwegian national broadcaster, NRK, have reacted with a mixture of shock and disbelief. Statoil representative Sverre Kojedal blandly told NRK that ‘in connection with the production of electrical energy and heat there will be emission of exhaust. This exhaust contains CO2 (carbon dioxide). We have no commercial technology today that traps and cleans away this gas.’[10] This statement seems to be in contradiction to other Statoil claims to be cleaning up emissions from refineries and gas plants.

Melkøya lies just 2 kilometres (1.25 miles) from the centre of Hammerfest, and will house northern Europe's largest LNG (Liquid Natural Gas) plant, where gas from the Snøhvit field will be liquefied. In July 2002 Statoil quashed protests against this facility with threats of legal action.[11] By the autumn of 2005 the company announced that it was suffering from increased costs to the tune of £600 million.

Statoil operates two other refineries, one, in which Shell has a 21 per cent interest, at Mongstad, north of Bergen, on Norway's west coast. and another at Kalundborg in Denmark.[12] Aker Kværner, another massive Norwegian construction and shipbuilding concern, recently got a contract to massively upgrade and modernize the Mongstad terminal in January of this year. 'This is the fifth project across Statoil refineries and chemical plants to be awarded to Aker Kværner in the last five years,' said Wim van der Zande, president of the Aker Kværner European Process business.[13] This seems to imply a very cozy relationship between the two companies.

Statoil's are imfamously involved with the gas pipeline in Mayo, Ireland. Another contentious venture is Statoil's gas exploration in the Barents Sea.[14] This puts at risk an ecologially sensitive area with large fish stocks.[15] The Norwegian government approved increased oil exploration at the end of March this year. As a sop to environmental concerns drilling in certain areas will be limited: a 50km zone near Norway's coast, which includes the Lofoten islands, will be off-limits - - until 2010. This shows how worried they are about potential pollution, as this is a very important area in Norway's tourist economy. Environmental groups have criticised the move as giving too little protection. Baard Lahn, leader of Norway's Nature and Youth environmental group, said: 'It can never be responsible environmental policy to allow drilling in vulnerable ocean areas.' [16]

In the company’s increasing drive to squeeze as much oil, gas, and potentially coal from Norwegian waters more risks are being taken over the safety of workers and paying less attention to the potential impact on sensitive environments and ecologies al along the coastline of Norway. In 2006 alone there have been numerous safety scares and fire since the start of the year forcing shutdown of oilrigs and fields across the North Sea[17].

In conclusion; the company tries to put over a nice friendly Norwegian style ‘aren’t we cuddly’ (!) organisation. However it is like all other international oil companies, profit, profit and yet more profit and sod the consequencess.

Links

STATOIL
www.statoil.com

Nature & Youth, Norwegian enviromental group www.nu.no/english/

Shell To Sea, Irish campaigning group
www.corribsos.com/

References
[1] Statoil in Brief http://www.statoil.com/STATOILCOM/
SVG00990.nsf?opendatabase〈=en&artid;=3FED33ECC77666314125665D004E05E3. Viewed: 25/01/06
[2] http://www.statoil.com/STATOILCOM/
SVG00990.nsf?opendatabase〈=en&artid;=0E97B9F26D8DE7CE4125665D004ED4FA. Viewed 25/01/06
[3] Statoil in Brief http://www.statoil.com/STATOILCOM/
SVG00990.nsf?opendatabase〈=en&artid;=3FED33ECC77666314125665D004E05E3. Viewed: 25/01/06
[4] http://www.statoil.com/STATOILCOM/
SVG00990.nsf?opendatabase〈=en&artid;=0E97B9F26D8DE7CE4125665D004ED4FA. Viewed 25/01/06
[5] http://www.statoil.com/STATOILCOM/
SVG00990.nsf?opendatabase〈=en&artid;=0E97B9F26D8DE7CE4125665D004ED4FA. Viewed 25/01/06
[6] www.aftenposten.no/english/business/article1222464.ece Viewed 15/02/06
[7] http://www.statoil.com/statoilcom/
svg00990.nsf?opendatabase〈=en&artid;=DD674F304E5406064125665D004B8D55 Viewed 25/01/06
[8] http://whc.unesco.org/en/list/1195
[9] www.aftenposten.no/english/local/article1292160.ece Viewed 20/07/06
[10] www.aftenposten.no/english/local/article1292160.ece Viewed 11/05/06
[11] www.aftenposten.no/english/local/article358378.ece Viewed 11/05/06
[12] http://www.statoil.com/STATOILCOM/
SVG00990.nsf?opendatabase〈=en&artid;=CD22947EE78315CAC1256D110024AC3C Viewed 25/01/06
[13] www.processingtalk.com/news/ark/ark138.html Viewed 11/05/06
[14] http://news.bbc.co.uk/2/hi/business/3321743.stm. Viewed 11/05/06
[15] http://news.bbc.co.uk/1/hi/business/4865530.stm Viewed 11/05/06
[16] http://news.bbc.co.uk/1/hi/business/4865530.stm Viewed 11/05/06
[17] http://aftenposten.by.com/nyheter.asp?q4=english&c4;=%40section&qu;=statoil&action;=Search Viewed 15/02/06.