2017 ENVIRONMENTAL REPORT - ENVIRONMENTAL WORK BY THE OIL AND GAS INDUSTRY FACTS AND DEVELOPMENT TRENDS - Norsk olje og gass

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2017 ENVIRONMENTAL REPORT - ENVIRONMENTAL WORK BY THE OIL AND GAS INDUSTRY FACTS AND DEVELOPMENT TRENDS - Norsk olje og gass
2017   ENVIRONMENTAL
       REPORT
       ENVIRONMENTAL WORK BY THE
       OIL AND GAS INDUSTRY
       FACTS AND DEVELOPMENT TRENDS
2017 ENVIRONMENTAL REPORT - ENVIRONMENTAL WORK BY THE OIL AND GAS INDUSTRY FACTS AND DEVELOPMENT TRENDS - Norsk olje og gass
1           FOREWORD                                                                 04

    2           SUMMARY                                                                  06

    3           LEVEL OF ACTIVITY
                ON THE NCS                                                               10

    4           DISCHARGES
                TO THE SEA

    4.1         Discharges from drilling . . . . . . . . . . . . . . . . 15
    4.2         Discharges of oily water . . . . . . . . . . . . . . . . . . 17
    4.3         Treatment of oily water . . . . . . . . . . . . . . . . . . 20
    4.4         Chemical discharges . . . . . . . . . . . . . . . . . . . . . . . . 22
    4.5         Unintentional spills. . . . . . . . . . . . . . . . . . . . . . . . . . 24

                OFFSHORE OPERATIONS

    5           AND THE MARINE
                ENVIRONMENT                                                              26

    5.1         Environmental monitoring . . . . . . . . . . . 27
    5.2         Environmental risk and the . . . . . . . . . . . . . . .
                precautionary principle . . . . . . . . . . . . . . . . . 30

    6           EMISSIONS
                TO THE AIR                                                               32

    6.1  Emission sources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
    6.2  Emissions of greenhouse gases . . . 34
         6.2.1. Roadmap for the NCS . . . . . . . . . . 35
         6.2.2. The KonKraft 2020 goal . . . . . . . . . .
         and greater attention to energy . . . . . . .
         management and efficiency . . . . . . . . . . 36
    6.3 Greenhouse gas emissions . . . . . . . . . . . . . . . . .
         from Norwegian and international. . .
         petroleum operations . . . . . . . . . . . . . . . . . . . . . 37
    6.4 Direct emissions of CO2 . . . . . . . . . . . . . . . . . . 40
    6.5 Short-lived climate forcers . . . . . . . . . . . 42
    6.6 Emissions of CH4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
    6.7 Emissions of nmVOC . . . . . . . . . . . . . . . . . . . . . . . . 44
    6.8 The NO x agreement and . . . . . . . . . . . . . . . . . . . . . . .
         international obligations . . . . . . . . . . . . . . . 45
    6.9 Emissions of NO x . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
    6.10 Emissions of SO x . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

    7           WASTE                                                                    48

                 EFFECTS OF SEISMIC
    8            SURVEYS ON FISH
                 AND FISH STOCKS                                                         52
                                                                                                  The Norwegian Oil and Gas Association (formerly
                                                                                                  the Norwegian Oil Industry Association) is an interest
                                                                                                  organisation and employer’s association for oil and

    9           TABLES                                                                   56
                                                                                                  supplier companies related to exploration for and
                                                                                                  production of oil and gas on the Norwegian continental
                                                                                                  shelf (NCS). It represents just over 100 member
                                                                                                  companies, and is a national association in the

    10          TERMS AND                                                                         Confederation of Norwegian Enterprise (NHO).
2               ABBREVIATIONS                                                            76
2017 ENVIRONMENTAL REPORT - ENVIRONMENTAL WORK BY THE OIL AND GAS INDUSTRY FACTS AND DEVELOPMENT TRENDS - Norsk olje og gass
2017
       ENVIRONMENTAL REPORT
       ENVIRONMENTAL WORK BY THE
       OIL AND GAS INDUSTRY
       FACTS AND DEVELOPMENT TRENDS
2017 ENVIRONMENTAL REPORT - ENVIRONMENTAL WORK BY THE OIL AND GAS INDUSTRY FACTS AND DEVELOPMENT TRENDS - Norsk olje og gass
1   FOREWORD
    THE NORWEGIAN OIL AND GAS ASSOCIATION PUBLISHES
    AN ANNUAL ENVIRONMENTAL REPORT CONTAINING
    A DETAILED OVERVIEW OF ALL EMISSIONS/DISCHARGES
    FROM THE PETROLEUM INDUSTRY IN THE PREVIOUS YEAR.
    ITS PURPOSE INCLUDES IMPARTING EMISSION/DISCHARGE
    DATA AS WELL AS INFORMATION ON THE INDUSTRY’S
    WORK AND RESULTS IN THE ENVIRONMENTAL AREA.
2017 ENVIRONMENTAL REPORT - ENVIRONMENTAL WORK BY THE OIL AND GAS INDUSTRY FACTS AND DEVELOPMENT TRENDS - Norsk olje og gass
The Norwegian petroleum industry has a clear ambition: it will be a world leader
in the environmental sphere. That calls for constant improvement. Detailed reporting
of emissions and discharges is essential for measuring progress and how far
goals are met.

This report derives its information from the       This environmental report contains a synthe-
Epim Environment Hub (EEH), a joint data-          sis of all emissions/discharges, as well as
base for Norwegian Oil and Gas, the Norwegian      a summary of results from research projects
Environment Agency (NEA), the Norwegian            related to the marine environment and emis-
Radiation Protection Authority and the             sions to the air.
Norwegian Petroleum Directorate (NPD).
Pursuant to the Environment Act, all operators     The definition of the petroleum industry
on the Norwegian continental shelf (NCS) must      accords with the one provided in the Norwegian
submit annual emission/discharge reports           Petroleum Tax Act. Emissions/discharges from
in accordance with the requirements specified      the construction and installation phase, on-
in the management regulations and set out          shore plants outside the scope of the Petroleum
in detail in the NEA guidelines for reporting      Tax Act, maritime support services and heli-
from offshore petroleum activities (M-107).        copter traffic are therefore excluded from
Where the operator companies are concerned,        this report.
these requirements mean that all emissions/
discharges and all waste generated from            This English version is a translation of
operations on the Norwegian continental shelf      the Norwegian report. Electronic versions
(NCS) must be reported in detail on an annual      in both English and Norwegian are published
basis. In addition to sending the emission/        on the Norwegian Oil and Gas website at
discharge report for each field to the NEA,        www.norskoljeoggass.no. The field-specific
all the data are posted to the EEH. That applies   emission/discharge reports submitted to the
both to planned and officially approved            NEA can also be downloaded from the site.
operational emissions/discharges and
to those which occur accidentally. Common
parameters ensure consistent emission/
discharge reporting from all production
licences.

                                                                                                     5
2017 ENVIRONMENTAL REPORT - ENVIRONMENTAL WORK BY THE OIL AND GAS INDUSTRY FACTS AND DEVELOPMENT TRENDS - Norsk olje og gass
2   SUMMARY
    OVERALL DIRECT CO2 EMISSIONS FROM OPERATIONS ON
    THE NCS IN 2016 WERE DOWN SLIGHTLY FROM THE YEAR
    BEFORE. THIS DECLINE PRIMARILY REFLECTED A LOWER
    LEVEL OF ACTIVITY AND REDUCED QUANTITIES EMITTED
    FROM A NUMBER OF EXISTING FIELDS ON THE NCS.
2017 ENVIRONMENTAL REPORT - ENVIRONMENTAL WORK BY THE OIL AND GAS INDUSTRY FACTS AND DEVELOPMENT TRENDS - Norsk olje og gass
The Norwegian petroleum sector had another demanding year in 2016. Oil prices appear to have bottomed
out at the beginning of 2017, followed by a moderate upturn. Production is up somewhat because new fields
have come on stream. At the same time, greenhouse gas (GHG) emissions have fallen a little and CO2 intensity
is down. Produced water discharges were reduced and a larger proportion of produced water was being injected
in 2016, so that the quantity of oil released to the sea also fell.

Overall direct CO2 emissions from opera-        The results show that the most significant     Further reductions from earlier years also
tions on the NCS and land-based plants          factor for CO2 emissions is the types of       occurred with emissions of NOx and SOx
subject to the Petroleum Tax Act amounted       hydrocarbons in the reservoir. Technology      in 2016. This decline reflects lower use of
to 13.34 million tonnes in 2016 – a slight      development and regulatory manage-             diesel engines owing to reduced employ-
reduction from the year before. This decline    ment also play a part, along with the extent   ment of mobile units. The present envi-
primarily reflected a lower level of activity   of flaring and power from shore as well        ronment agreement under the Business
related to mobile rigs, reduced emissions       as the maturity of the continental shelf.      Fund for Nitrogen Oxides expires at the
from existing NCS fields and a fall in the      Rystad’s calculations confirm that CO2         end of 2017. Both industry and the govern-
quantity of CH4 released because the            intensity on the NCS is half the world         ment want the agreement to continue
emission factors previously utilised had        average.                                       from 2018. The 15 industry associations
been too conservative. That meant the                                                          affiliated to the fund signed a new agree-
actual emissions were lower than earlier        A roadmap for the NCS was drawn up             ment in May 2017 for 2018-25.
assumed. At the same time, total NCS            by the petroleum industry in 2016 which
production grew because new fields              sets specific goals and ambitions for          Discharges to the sea derive primarily
such as Goliat and Edvard Grieg came            further cuts in GHG emissions from oil         from drilling wells and from the produced
on stream. Emissions from such develop-         and gas production. It has been compiled       water which comes up with the oil. On new
ments are relatively lower than on older        by Norwegian Oil and Gas and the               fields, produced water consists exclusively
fields. Specific CO2 emissions per unit         Federation of Norwegian Industries             of the amount already present in the
produced (CO2 intensity) on the NCS             through KonKraft, a collaboration arena        reservoirs. However, its quantity increases
therefore declined.                             for these two organisations as well as         as the field ages because water is injected
                                                the Norwegian Shipowners Association           to maintain reservoir pressure and improve
Over the past two years, Norwegian Oil          and the Norwegian Confederation                the oil recovery factor. Treated seawater
and Gas has also implemented a joint            of Trade Unions (LO).                          is primarily used. Annual produced water
industry project on energy management                                                          discharges peaked in 2007 at around 162
and enhancing energy efficiency. This           Emissions of short-lived climate forcers       million standard cubic metres (scm).
work has focused greater attention on           from production on the NCS, with CH4           They have subsequently varied between
finding and implementing measures for           and nmVOC as the most important sources,       130-150 million scm and amounted to 138
more efficient energy use which reduces         are already low in international terms.        million scm in 2016.
GHG emissions.                                  A joint project with the Norwegian
                                                Environment Agency (NEA) revealed              On certain fields where conditions are
Rystad Energy has been commissioned             that the emission factors previously           appropriate, all or part of the produced
by Norwegian Oil and Gas to obtain              applied on the NCS have been conservative,     water is injected back into the sub-surface.
a more detailed comparison of petroleum         and that the actual figures are lower than     Such injection increased substantially
output and associated CO2 emissions             earlier assumed. According to a recent         in 2002 and has been around 20 per cent
by the world’s leading oil producers.           study, the overall proportion of CH4           of the total quantity in recent years. Just
This consultancy has developed a method         emitted on the NCS from the whole gas          over 24 per cent was injected in 2016.
for assessing emissions from every field        value chain – including the transmission       Produced water represents the most
which embraces not only production              and distribution network – comes to about      important source of oil discharges on
but also refining and combustion                0.3 per cent. This is lower than earlier
of oil and gas.                                 estimates.

                                                                                                                                              7
2017 ENVIRONMENTAL REPORT - ENVIRONMENTAL WORK BY THE OIL AND GAS INDUSTRY FACTS AND DEVELOPMENT TRENDS - Norsk olje og gass
the NCS. The water is treated before release      Extensive substitution of chemicals has
    with the aid of technologies which differ         reduced the release of the most environ-
    between the various fields.                       mentally harmful substances to a fraction     Production from the NCS
                                                      of what it was only 10 years ago. However,    increased somewhat
    The oil content in produced water aver-           a marked increase in reported discharges
    aged 12.3 milligrams per litre across             of black chemicals occurred in 2011-14.       because of new fields.
    the NCS in 2016 – unchanged from the              This primarily reflects changed reporting     Total emissions never-
    year before. The regulatory threshold             requirements and work on substitution.
    is 30 mg/l.                                       Discharges of fire-extinguishing foam
                                                                                                    theless declined and the
                                                      were not reported earlier because this        amount of CO2 released
    Drilling discharges primarily comprise            was a safety chemical with no alternative     per unit produced
    rock particles (drill cuttings) from the          products able to offer satisfactory extin-
    borehole and drilling fluid. Discharges           guishing properties. Alternatives with
                                                                                                    was reduced.
    are only permitted from wells drilled             less environmentally harmful properties
    with water-based fluid, or when contami-          are now available. These are currently
    nation from oil-based fluid is less than          being phased in, but it will be several
    10 grams of oil per kilogram of cuttings.         years before all fields on the NCS have
    Drilling activity in 2016 declined some-          replaced the old types with new versions.
    what from the year before, particularly           As a result, mandatory fire drills and
    for exploration wells (36 compared with           system tests will mean continued foam
    56 in 2015). Despite this decline, the            discharges for several years to come.
    number of production wells remained               Discharges of black chemicals in 2016
    historically high, at 177 compared with           were less than a third of the 2014 figure.
    an average of 153 over the past 10 years.
                                                      New fire-extinguishing foams still contain
    The use and discharge of chemicals is             components which fall into the red cate-
    strictly regulated in Norway. Chemicals           gory. This contributed significantly to
    are assessed on the basis of their envi-          a marked increase in red chemical dis-
    ronmental properties and criteria laid            charges in 2013-16, which amounted
    down in the HSE regulations with associ-          to 103 tonnes in the latter year. A further
    ated guidelines. Chemical additives               contribution was made by reclassification
    are divided into four categories (green,          of certain chemicals from yellow to red.
    yellow, red and black), where green
    substances have no or very limited envi-          Extensive preventive work by the opera-
    ronmental impact while black can only             tors to avoid unintentional discharges
    be discharged in special circumstances –          has led to a continued decline in the
    where this is crucial for safety, for instance.   number of spills. Totalling 39 instances,
    The operators are required to make                acute oil discharges in 2016 were at
    regular assessments of which chemicals            a record low. Only two crude oil discharges
    can be replaced with less environmen-             larger than one cubic metre occurred
    tally harmful alternatives – known                during the year, compared with three
    as the substitution duty.                         in 2015.

8
2017 ENVIRONMENTAL REPORT - ENVIRONMENTAL WORK BY THE OIL AND GAS INDUSTRY FACTS AND DEVELOPMENT TRENDS - Norsk olje og gass
9
2017 ENVIRONMENTAL REPORT - ENVIRONMENTAL WORK BY THE OIL AND GAS INDUSTRY FACTS AND DEVELOPMENT TRENDS - Norsk olje og gass
3   LEVEL OF ACTIVITY
     ON THE NCS
     NORWAY’S PETROLEUM SECTOR HAS BEEN THROUGH
     ANOTHER DEMANDING YEAR. COSTS ARE BEING CUT
     TO ADAPT TO LOWER OIL PRICES, AND SOME 50 000
     EMPLOYEES HAVE HAD TO LEAVE THE INDUSTRY SO FAR.

10
At the beginning of 2017, the signs are that the slump in oil prices is over and has been followed
 by a moderate upturn. Continued attention will nevertheless need to be paid to cost developments
 in the industry.

 The oil and gas industry on the NCS has                       With continued attention devoted to cost               in 2016. That was up 2.5 million scm oe
 experienced another demanding year.                           trends, the role of the petroleum sector               or 1.1 per cent from the year before, which
 Substantial cost cuts have been required                      in the Norwegian economy will be                       reflects several new fields coming on stream
 to restore profitability in the sector after                  expanding again. The industry is well                  in recent years. Total petroleum output in
 the sharp drop in oil prices which began                      equipped for the future.                               2017 is expected to be 229.5 million scm
 in the summer of 2014. The result so far                                                                             oe. This moderate decline must be viewed
 is that 50 000 people have had to leave                       PRODUCTION TREND POSITIVE                              in relation to good regularity on the fields
 the industry, while the level of capital                      DESPITE LOWER OIL PRICES                               and to the various efficiency improvement
 spending has been substantially reduced.                      Despite low oil prices and declining invest-           measures which have also significantly
 At the same time, decisions on cutting                        ment, crude output has been rising over                reduced operational and exploration costs.
 petroleum output by Opec and other                            the past three years. At the same time,                Overall production from the NCS in 2016
 producer countries have helped to                             gas sales have remained at the same high               was nevertheless down by 11.9 per cent
 halt the price decline and produce                            level as in 2015. Final figures show that              from the 2004 peak. The NPD expects total
 a moderate rise since 2016.                                   232.7 million standard cubic metres                    output to rise somewhat again over the
                                                               of oil equivalent (scm oe) were sold                   coming five-year period.

             01
                                                                                                                                                              Source: NPD
FIGURE

                       ACTUAL AND FORECAST SALES OF PETROLEUM 1971-2021
                       (MILL SCM OE)

 Million scm oe
300

250

200

150

100

   50

         0
             70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21

                 Oil        Condensate         NGL          Gas

                                                                                                                                                                            11
Oil production could fall a little over the                      At the same time, the decline in output                 Europe. The NPD’s prediction for gas
     next couple of years, and is then expected                       from fields long on stream was smaller                  sales over the next five years shows
     to increase again. Natural gas liquids (NGL)                     than expected. The most important reasons               a relatively stable level, with only
     and condensate are expected to show                              were high regularity and the substantial                small changes from year to year.
     a moderate decline over the next five                            number of new production wells drilled.
     years, while gas output could rise weakly.                       The NPD assumes that oil output in 2017                 NGL/CONDENSATE SET TO DECLINE
     Uncertainty over production forecasts                            will remain on a par with the 2016 figure.              NGL output totalled 20.2 million scm oe
     relates to further energy price trends                           It is expected to decline somewhat (by 2.8              in 2016, up by 0.6 million scm oe or 2.9
     as well as to the number of exploration                          per cent) until 2020 (see figure 1), with               per cent from the year before. The NPD
     wells drilled on the NCS. Thirty-six of the                      the contribution from Johan Sverdrup                    estimates that this figure will decline by
     latter were spudded in 2016 at a total                           again expected to boost production.                     14.3 per cent up to 2021, which means
     cost of NOK 22 billion. That was 20 wells                        Uncertainty relates particularly to the                 a reversal of the weakly rising trend seen
     down from the year before, while explo-                          drilling of new wells, bringing new fields              in recent years. Condensate production
     ration costs were about 35 per cent lower.                       on stream, reservoir deliverability and                 has been declining over the past few years.
     The NPD estimates that these costs will                          the regularity of producing fields.                     It amounted in 2016 to 1.9 million scm
     fall by a further 15 per cent from 2016                                                                                  oe, down by 23.9 per cent from the year
     to 2017, and then gradually rise.                                FLAT TREND LIKELY FOR GAS SALES                         before. The NPD expects a further 15.8
                                                                      Sales of gas from the NCS totalled 116.6                per cent fall in condensate output up
     OIL – MODERATE DECLINE UNTIL JOHAN                               billion scm in 2016, down slightly by                   to 2021. Overall, this means NGL and
     SVERDRUP COMES ON STREAM                                         0.5 billion scm or 0.4 per cent from the                condensate production could decline by
     Oil production in 2016 came to 94 million                        year before. Gas output has exceeded oil                roughly 14.5 per cent from 2016 to 2021.
     scm or 1.62 million barrels per day (b/d),                       production since 2010. The level of gas
     compared with 91 million scm (1.56                               sales is difficult to predict, even in the              LIMITED BOOST TO FLUIDS OUTPUT
     million b/d) the year before – an increase                       short term. It proved about nine per cent               Fluids production (oil, NGL and conden-
     of 3.3 per cent. New fields coming on                            higher in 2016 than the NPD forecast                    sate) amounted to 116 million scm oe
     stream contributed more than five million                        the year before. That partly reflects                   in 2016, and may decline even further in
     scm of oil in 2016.                                              a continued high level of demand from                   the next few years. According to the NPD,

                  02
                                                                                                                                                                    Source: NPD
     FIGURE

                         RESOURCE GROWTH AND PRODUCTION ON THE NCS
                         (MILL SCM OE)

     500

     400

     300

     200

     100

              0
                  1995   1996   1997   1998     1999   2000    2001   2002   2003   2004   2005   2006   2007   2008   2009    2010   2011   2012   2013   2014   2015   2016

                     Resource growth          Total petroleum production
12
this could be reversed in 2020-21 because                          to be produced. Proven resources ac-                     Sea and 93 in the Barents Sea. Plans call
of prospects for higher oil output. Estimates                      counted for 4.6 billion scm oe of the latter             for applications to be invited in the second
therefore indicate a possible increase                             figure, while estimated undiscovered                     quarter of 2017, with a deadline in the last
of 1.6 per cent in fluids production                               resources came to 2.9 billion or roughly                 quarter. While the North and Norwegian
from 2016 to 2021.                                                 39 per cent of total remaining resources.                Seas have so far been the most important
                                                                                                                            areas for the petroleum sector, the Barents
Forecasts for overall NCS production                               24TH LICENSING ROUND                                     Sea’s role will become increasingly
show a relatively flat trend up to the                             The government invited the oil companies                 significant in coming years.
mid-2020s. Compared with the NPD’s                                 on 29 August 2016 to nominate blocks
previous prediction, output is now                                 for possible inclusion in the 24th licensing             INVESTMENT DECLINE CONTINUING
expected to remain higher until 2027.                              round. Numbered licensing rounds cover                   Capital spending on oil and gas operations,
That partly reflects expectations of                               the opened frontier areas of the NCS,                    including pipeline transport, totalled NOK
greater drilling activity, improved                                where the potential for making big                       163.3 billion in 2016 and was down by
regularity for fields on stream, and                               discoveries is at its greatest.                          NOK 37.9 billion or 18.8 per cent from the
a lower level of costs which contributes                                                                                    year before. While cutbacks occurred in
to a faster phasing-in of new projects                             With each licensing round, the Ministry                  all investment categories, the biggest were
than was previously assumed.                                       of Petroleum and Energy decides which                    from fields on stream, exploration and
                                                                   areas should be incorporated when plans                  field development. Ongoing investment
48 PER CENT OF RESOURCES                                           for inviting applications are drawn up.                  rose by no less than 70 per cent from 2010
SOLD AND DELIVERED                                                 As with the work on the 23rd round and                   to 2014, but fell by more than 27 per cent
The main goal of Norwegian petroleum                               the annual awards in predefined areas                    from 2014 to 2016 measured in current
policy is to facilitate profitable production                      (APA), the government’s commitments                      value. An important role was played in this
of oil and gas in a long-term perspective.                         to its supporting parties and the limita-                development by a substantial fall in invest-
At 31 December 2016, the NPD’s resource                            tions imposed by the management plans                    ment-related costs, as illustrated in figure 3.
accounts had risen by 0.1 billion scm oe                           will form the basis for announcing the
from a year earlier to 14.3 billion. Of this,                      24th round. The ministry proposes to                     In the investment survey for the first
6.9 billion or 48 per cent had been sold                           offer a total of 102 blocks in this round,               quarter of 2017, licensees on the NCS
and delivered, while 7.4 billion remained                          broken down into nine in the Norwegian                   estimate that capital spending on oil and
                                                                                                                            gas production – including pipeline trans-
                                                                                                                            port – will come to NOK 149.4 billion for
                                                                                                                            the full year. This figure is marginally higher

         03
                                                                                                                            than in the previous quarter, and reflects
FIGURE

                      COST PROGRESS FOR SELECTED FIELD DEVELOPMENTS
                      (NOK BN, 2016 VALUE)                                                                                  somewhat higher estimates for field devel-
                                                                                                                            opment, fields on stream, and cessation
                                                                                                              Source: NPD
                                                                                                                            and removal. The improvement from the
250
                                                                                                                            previous quarter has been moderated by
                                                                                                                            a further reduction in estimated explora-
200                                                                                                                         tion spending, which is expected to decline
                                                                                                                            by 13 per cent from 2016.

150

100

   50

         0
                        Autumn 2014                         Autumn 2015                         Autumn 2016

             (Johan Sverdrup phase II, Johan Castberg, Utgard, Oda, Trestakk, Dvalin and Snilehorn).

                                                                                                                                                                              13
4   DISCHARGES
    TO THE SEA
    DISCHARGES TO THE SEA DERIVE PRIMARILY FROM DRILLING WELLS
    AND FROM THE PRODUCED WATER WHICH COMES UP FROM THE
    RESERVOIR WITH THE OIL. PRODUCED WATER DISCHARGES PEAKED
    AT JUST OVER 160 MILLION SCM IN 2007. THE OVERALL AMOUNT
    DISCHARGED IN 2016 CAME TO 138 MILLION SCM.
4.1 DISCHARGES FROM DRILLING
 Drilling discharges primarily comprise rock particles (drill cuttings) from the borehole and drilling fluid.
 Discharges are only permitted from wells drilled with water-based fluid, or with permission from the NEA
 where contamination from oil-based fluid is less than 10 grams of base oil per kilogram of cuttings. Even
 with a somewhat lower level of both exploration and production drilling, discharges were roughly on a par
 with 2015.

 Despite lower oil prices, drilling activity         The industry primarily utilises two types                    treatment or injected in dedicated wells
 in 2016 was relatively high (see figure 4).         of drilling fluids today: oil- and water-based.              beneath the seabed.
 A total of 177 new production wells were            Ether-, ester- or olefin-based “synthetic”
 drilled during the year, the second largest         fluids were also utilised earlier, but have                  Consumption of oil-based drilling fluid
 number since 2000 but a slight decline              been little used in recent years.                            in 2016 was on a par with the year before.
 from 2015. However, exploration drilling
 showed a marked decline to just 36 wells            Discharging oil-based or synthetic drilling                  The proportion of drilling fluid injected
 in 2016 compared with 56 and 57 wells               fluids, or cuttings contaminated with these,                 was also stable, at about 29 per cent.
 in the two preceding years.                         is prohibited if the oil concentration                       Injection wells have been established
                                                     exceeds one per cent by weight – in other                    on a number of new fields, while injec-
 The fluid used when drilling wells has              words, 10 grams of oil per kilogram of                       tion wells on certain older fields found
 many functions. These include bringing              cuttings. Cuttings contaminated with                         in 2007-09 to contain fractures and
 up drill cuttings, lubricating and cooling          less than one per cent of oil-based or                       leaks have not been replaced.
 the drill bit, preventing the borehole              synthetic drilling fluids may only be
 from collapsing and, not least, keeping             discharged with permission from the
 pressure in the well under control to               NEA. Spent oil-based drilling fluids and
 prevent an uncontrolled blowout of                  contaminated cuttings are either shipped
 oil and gas.                                        ashore as hazardous waste for acceptable

         04                                                                             05
FIGURE

                                                                               FIGURE

                                                                                                   DISPOSAL OF OIL-BASED DRILLING FLUID
                  WELLS DRILLED ON THE NCS AFTER 2000
                                                                                                   (TONNES)

300                                                                            140 000

                                                                                120 000
250

                                                                               100 000
200

                                                                                  80 000
150
                                                                                  60 000
                                                                                                     59%
                                                                                             72%

                                                                                                           60%

                                                                                                                  55%

100
                                                                                                                        50%

                                                                                  40 000
                                                                                                                               39%

                                                                                                                                                       39%

   50
                                                                                                                                                                   29%

                                                                                                                                                                         29%
                                                                                                                                                             31%
                                                                                                                                     33%

                                                                                  20 000
                                                                                                                                                 25%
                                                                                                                                           21%

         0                                                                              0
             00 01 02 03 04 05 06 07 08 09 10   11    12   13   14   15   16                04       05    06    07     08     09    10    11    12    13    14    15    16

               Production    Exploration                         Source: NPD                       Drilling fluid injected           Drilling fluid sent ashore
                                                                                                   Drilling fluid discharged
                                                                                                                                                                               15
A thermomechanical cuttings cleaner                      recorded as being delivered to land in                Discharges of cuttings drilled out with
     (TCC) technology for dealing with oil-                   the form of hazardous waste is substan-               water-based fluids in 2016 were roughly
     contaminated cuttings was adopted on                     tially larger. This is because cuttings from          on a par with the year before at 105 000
     one offshore platform in 2015. In that                   many fields are slurrified by adding water            tonnes. Water-based fluids consist prima-
     context, 9.4 tonnes of oil-based fluid                   so that they can be handled more easily to            rily of natural components such as clay or
     was discharged as contamination on                       and from the vessels shipping them to land.           salts, which are classed as green chemi-
     2 460 tonnes of cuttings. No such dis-                   Oil-contaminated cuttings delivered as                cals in the NEA’s classification system.
     charges occurred in 2016, but a number                   waste totalled just over 50 000 tonnes                In line with Ospar, they pose little or no
     of them are likely in the future under                   in 2013, rising to 77 000 in 2014 and                 risk to the marine environment when
     permits from the NEA. Statoil, for example,              almost 106 000 in 2015. Deliveries in                 discharged. The possible impact of these
     has wished to utilise this technology                    2016 totalled 118 000 tonnes. Water and               discharges is followed up by extensive en-
     on Johan Sverdrup.                                       cuttings are separated on land, with the              vironmental monitoring (see section 5.1).
                                                              former treated and discharged to sea
     The quantities of cuttings presented                     while the latter are subject to further
     above are based on calculations of the                   treatment in accordance with the ap-
     rock drilled out. However, the amount                    plicable regulations.

              06                                                                               07
     FIGURE

                                                                                      FIGURE

                      DISPOSAL OF DRILL CUTTINGS CONTAMINATED                                          DISCHARGE OF DRILL CUTTINGS FROM WELLS
                      WITH OIL-BASED DRILLING FLUID (TONNES)                                           DRILLED WITH WATER-BASED FLUID (TONNES)

     120 000                                                                          250 000

     100 000
                                                                                      200 000

       80 000
                                                                                      150 000

       60 000

                                                                                      100 000
       40 000

                                                                                         50 000
       20 000

              0                                                                                0
                  2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016                 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

                      Cuttings            Cuttings           Cuttings                                  Cuttings sent ashore      Cuttings injected
                      sent ashore         injected           discharged
                                                                                                       Cuttings discharged       Cuttings exported to other fields
16
4.2 DISCHARGES OF OILY WATER
Discharges of oily water from petroleum operations on the NCS derive from three main sources,
with produced water accounting for the biggest contribution. Smaller contributors are displacement
and drainage water as well as jetting.

Produced water: This has been in contact                             in the cells, this water must be treated            remains on the particles after the water
with geological formations as well as with                           before discharge. The seawater has                  has been treated in accordance with the
any oil in these, and accompanies the crude                          a limited contact area with the crude,              regulations. The quantity of oily water
up to the platform where it is treated                               so the quantity of dispersed oil is usually         discharged is marginal.
before being discharged to the sea. The                              small. The volume discharged depends
water contains dispersed oil, various                                on the level of oil production.                     Oily water can also derive from cleaning
inorganic salts, heavy metals and organic                                                                                process equipment, from accidents,
compounds as well as naturally occurring                             Drain water: Water falling as rain or               or from the deposition of oil droplets
radioactive substances. Various treatment                            used to wash down decks may contain                 released by flaring in connection with
technologies help to get its oil content                             chemical residues and oil. Drain water              well testing and workovers.
as low as possible. The regulatory thresh-                           forms only a small proportion of the
old for the oil concentration in produced                            total quantity discharged.                          PRODUCED WATER DISCHARGES
water discharged to the sea is 30 milli-                                                                                 A continuous rise in discharges of
grams per litre (mg/l).                                              Jetting may also form an additional                 produced water on the NCS was fore-
                                                                     category. Particles and oily sand which             cast for many years, with the volume
Displacement water: Seawater is used                                 accumulate in the separators must be                expected to exceed 200 million scm
as ballast in the storage cells on some                              flushed out by water jetting from time              in 2012-14. However, it peaked at 160
platforms. When oil is to be stored                                  to time. Some oil contamination                     million scm in 2007 and has declined
                                                                                                                         substantially since. Annual discharges
                                                                                                                         rose to almost 150 million scm in
                                                                                                                         2012-15, but declined again in 2016
                                                                                                                         to just over 138 million scm.

             08                                                                                                          On certain fields where conditions are
FIGURE

                       PRODUCED WATER DISCHARGED TO THE SEA
                       OR INJECTED BELOW GROUND (MILL SCM)                                                               appropriate, all or part of the produced
                                                                                                                         water is injected back into the sub-surface.
200                                                                                                                      Such injection rose substantially from
                                                                                                                         2002, and has been about 20 per cent
                                                                                                           22%
                                               14%

180
                                                                                                                         of the total quantity in recent years.
                                                                                                     22%

                                                                                                                   24%
                                18%

                                                        17%
                                        18%
                        17%

160                                                                                                                      Twenty-four per cent, or a little over
                                                                                              23%
                                                               18%

                                                                      20%

                                                                                      20%
                                                                                19%
              14%

140                                                                                                                      43 million scm, was injected in 2016.
120
                                                                                                                         Produced water in new fields consists
100
                                                                                                                         exclusively of the amount already present
   80                                                                                                                    in the reservoirs. However, its quantity
   60                                                                                                                    increases as the field ages because water
                                                                                                                         is injected to maintain reservoir pressure
   40
                                                                                                                         and improve the oil recovery factor.
   20                                                                                                                    Treated seawater is normally used. Oil
         0                                                                                                               recovery factors for fields on the NCS are
             2003      2004    2005   2006    2007    2008    2009   2010      2011   2012   2013   2014   2015   2016   generally well above the global average.

                    Water volume to the sea          Produced water injected

                                                                                                                                                                        17
Despite this, discharges on the NCS are                    somewhat in 2016, when sources other              DISCHARGES OF OTHER SUBSTANCES
      comparable with international figures.                     than produced water accounted for                 WITH PRODUCED WATER
                                                                 just over 32 million scm of discharges.           Produced water has been in contact
      The growing proportion of older fields                                                                       with the sub-surface for a long time, and
      means that produced water as a share                       DISCHARGES OF OILY WATER                          therefore contains a number of naturally
      of the total output of oil and water has                   Water is treated before discharge with            occurring substances. In addition to oil,
      shown a rising tendency. However, it                       the aid of different technologies on the          these typically include monocyclic and
      declined somewhat in 2016 – probably                       various fields. The average oil content           polycyclic aromatic hydrocarbons (PAH),
      because a number of new fields came                        of produced water for the whole NCS               alkylphenols, heavy metals, natural
      on stream.                                                 was 12.3 mg/l in 2016, compared with              radioactive materials, organic substances,
                                                                 the official requirement of 30 mg/l.              organic acids, inorganic salts, mineral
      Monitoring has not identified any envi-                    That was on a par with the year before            particles, sulphur and sulphides. Their
      ronmental effects from releasing produced                  and a slight decline from 2014.                   composition will vary from field to field,
      water (see section 5.1).                                                                                     depending on sub-surface properties.
                                                                 The quantity of oil in produced water             The content of environmentally hazardous
      DISCHARGES OF OTHER WATER TYPES                            discharged to the sea fell from just over         substances is generally low, close to the
      Displacement water dominates discharges                    1 800 tonnes in 2015 to 1 697 (see figure         natural background level in seawater.
      of other water types. The volume discharged                12). A total of 1 805 tonnes of oil was
      declined steadily up to 2009-11 and there-                 released in water on the whole NCS
      after rose slightly. However, it declined                  in 2016.

              09                                                                                 10
     FIGURE

                      RATIO BETWEEN PRODUCED WATER AND OIL
                                                                                        FIGURE

                                                                                                        DISCHARGES TO THE SEA OF OTHER
                      PRODUCTION ON THE NCS (CU.M)                                                      OILY WATER TYPES (MILL CU.M)

     2.5                                                                                 90

                                                                                        80

     2.0
                                                                                         70

                                                                                         60
     1.5
                                                                                         50

                                                                                        40
     1.0
                                                                                         30

                                                                                         20
     0.5
                                                                                         10

     0.0                                                                                   0

              93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16            97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

                  Produced water/oil                                                                Drain       Displacement

18
11                                                                                    12
FIGURE

                    OIL CONCENTRATION IN PRODUCED WATER
                                                                                      FIGURE

                                                                                                         OIL CONTENT IN WATER DISCHARGED
                    DISCHARGED TO THE SEA (MG/L)                                                         ON THE NCS (TONNES)

 35                                                                                   2 000

                                                                                      1 800
 30
                                                                                      1 600

 25                                                                                   1 400

                                                                                      1 200
 20
                                                                                      1 000
 15
                                                                                         800

 10                                                                                      600

                                                                                         400
    5
                                                                                         200

    0                                                                                          0
         03    04    05   06   07   08   09    10    11    12     13   14   15   16                03   04    05   06   07   08   09   10   11   12   13   14    15   16

              Regulatory requirement          Oil concentration                                     Jetting         Drain         Displacement        Produced

                                                                                                                                                                           19
4.3 TREATMENT OF OILY WATER
     The strategy of zero harmful discharges on the NCS is pursued using a risk-based approach, where risk
     assessments ensure that measures are applied where they have the biggest environmental effect while
     also providing a sensible cost/benefit balance. These efforts have led to a substantial reduction in oil
     released to the sea by injecting produced water below ground or treating it before discharge.

     Research as well as environmental impact      ■	A good treatment effect can be achieved
     factor (EIF) calculations show that certain      on some fields with simple techniques,
     chemical additives and natural compo-            while others face more challenging           Substantial investment
     nents from the sub-surface discharged            conditions and require additional            has been made in treat-
     together with produced water can have            measures. Even when the latter are
     harmful effects on aquatic organisms.            implemented, variations in conditions        ment technology and
     However, this relates to concentrations          can lead to significant fluctuations         investment to reduce oil
     only found close to the discharge point –        in the treatment effect.
                                                                                                   discharged in produced
     within a distance of a few hundred metres.    ■	Different treatment techniques have
     Chemical additives which contribute to           limitations related to operational condi-    water. Injection is always
     the environmental risk are subject to sub-       tions, including oil type, water quality     considered on new fields
     stitution (see section 4.4). Water-column        and volume, pressure changes, use of
     monitoring on the NCS confirms that no           chemicals, phasing in wellstreams from
                                                                                                   as a possible strategy for
     negative effects can be demonstrated from        other fields and so forth.                   handling produced water.
     the discharges beyond the immediate           ■	A technique which works well in one
     vicinity (see chapter 5). Effects relate         location can accordingly be less suitable
     primarily to outcomes in biomarkers.             or inappropriate elsewhere.
                                                   ■	The success of treatment can fluctuate
     Substantial investment has been made             substantially over time – from one month
     in treatment technology and injection            to another and from year to year – as
     in order to reduce oil discharged with           a result of varying operating conditions.
     produced water. On some fields, several
     billion kroner have been spent on treat-      The best available techniques (BAT) are
     ment solutions for oily water. Running        assessed when evaluating a solution for
     such facilities also costs from a few to      the individual field. Such assessments
     several tens of millions of kroner per        extend far beyond simply looking at dis-
     annum. New treatment technology and           persed oil in water. Energy consumption
     improved operation have reduced the           and cost are other key subjects, for example.
     concentration of oil in produced water        Where new fields on the NCS are concerned,
     on a number of fields. While most fields      injection is always assessed as a possible
     have discharges far below the regulatory      strategy for handling produced water.
     ceiling of 30 mg/l, some experience           However, not all fields have reservoirs
     problems for various reasons in achieving     with the right properties for injecting
     stable operation of injection facilities      produced water. Where conditions are
     and treatment processes.                      appropriate for injection, this is often
                                                   a preferred option based on environmental
     On behalf of Norwegian Oil and Gas, DNV       assessments. The volume of produced
     GL has reviewed discharge data and treat-     water discharged to the sea declined in
     ment technologies on the NCS. Its findings    2016, and the latest forecasts from the
     emphasise facts which have also been          NPD indicate that it will fall even further.
     reported earlier by the environmental
     authorities:

20
21
4.4 CHEMICAL DISCHARGES
     Chemicals are assessed on the basis of their environmental properties, including persistence, potential
     for bioaccumulation and toxicity (PBT). The Norwegian government has also specified criteria in the activities
     regulations and in guidelines for reporting from offshore petroleum operations.

     Chemical additives covered by require-        The NEA’s table for classifying and         tion of chemicals has reduced the release
     ments in emission/discharge permits           reporting chemicals is presented in         of the most environmentally harmful
     are divided into four categories (green,      table 1. A more detailed description is     substances to a fraction of the level
     yellow, red and black) in accordance          provided in the NEA’s M-107 guideline       only 10 years ago.
     with the classification in the activities     on reporting from offshore petroleum
     regulations:                                  operations (in Norwegian only).             A marked increase in reported discharges
                                                                                               of black chemicals occurred in 2011-14,
        1) GREENChemicals considered to            Discharges of chemical additives from       but this trend has been reversed in the
     have no or very limited environmental         Norwegian petroleum operations totalled     past couple of years. Where red chemicals
     impact. Can be discharged without             just over 152 000 tonnes in 2016. Overall   are concerned, a steady rise has occurred
     special conditions.                           discharges have declined steadily since     since 2013. Discharges fell from 6.6
                                                   2013. Green chemicals accounted for         tonnes in 2015 to 3.6 tonnes for black
      2) YELLOW Chemicals in use, but not          almost 91 per cent of the total, while      chemicals and rose from 67 tonnes
     covered by any of the other categories.       the red and black categories accounted      to 103 tonnes for the red category.
     Can normally be discharged without            jointly for some 0.047 per cent of dis-
     specified conditions.                         charges. Yellow chemicals represented       Complex factors underlie the variations
                                                   9.4 per cent.                               in recent years, but changed requirements
      3) RED Chemicals which must be given                                                     for both reporting and substitution work
     priority for substitution, but which can      Replacing chemicals with less environ-      are the most important. An important
     be discharged with government permis-         mentally harmful alternatives – known       contribution has been that discharges
     sion.                                         as the substitution duty – represents       of fire-extinguishing foam were not
                                                   an important part of efforts to reduce      reported earlier because this was a safety
      4) BLACK Chemicals which the govern-         possible environmental effects from         chemical with no alternative products
     ment can permit to be discharged              offshore discharges. Operators regularly    able to offer satisfactory extinguishing
     in special circumstance – where this          assess the chemicals used to see if they    properties (see the HSE regulations).
     is crucial for safety, for instance.          can be substituted. Extensive substitu-     Alternatives with less environmentally
                                                                                               harmful properties are now available.
                                                                                               These are now being phased in, but it will
                                                                                               be several years before all fields on the

              13
     FIGURE

                   BREAKDOWN OF DISCHARGES OF CHEMICAL ADDITIVES                               NCS have replaced the old types with new
                   FROM THE NCS BY THE NEA’S CATEGORIES (2016)                                 versions. Mandatory drills and system
                                                                                               tests will therefore lead to discharges
                                                                                               of black chemicals for a number of years
                                                                                               to come. The new alternatives still contain
                                                                                               components categorised as red. That ex-
                                                      YELLOW                                   plains the marked increase in discharges
                                            9.4%                    BLACK   0.002%
                                                                                               for this category of chemicals. A further
                                                                                               contribution has been made by reclassi-
                                                                      RED   0.07%              fying certain chemicals from yellow
                                                                                               to red categories.

                   GREEN     90.6%

22
01               THE NEA’S TABLE FOR CLASSIFYING AND REPORTING CHEMICALS.
TABLE

                           SEE THE M-107 GUIDELINE FOR EXPLANATIONS WITH CHAPTER REFERENCES.

                                                                                                          NEA colour                                                                                                                                      NEA colour
 Discharge                                                                          Category1              category                              Discharge                                                                         Category1               category

         Vann                                                                                                                                       Substances in yellow category:

         Substances on Ospar’s Plonor list                                               201                       Green                            Substances with biodegradability > 60%                                              100                     Yellow

         Substances covered by Reach annex IV 2                                          204                       Green                            Substances with biodegradability 20-60%

         Certain substances covered by Reach annex V 3                                   205                       Green                                  Sub-category 1:
                                                                                                                                                                                                                                        101                     Yellow
                                                                                                                                                          expected to biodegrade fully

         Substances with no test data                                                       0                      Black
                                                                                                                                                          Sub-category 2:
                                                                                                                                                          expected to biodegrade to environ-                                            102                     Yellow
         Substances thought to be,
                                                                                                                                                          mentally non-hazardous substances
         or which are, hazardous to genes                                                 1.1                      Black
         or reproduction 4
                                                                                                                                                          Sub-category 3:
                                                                                                                                                          expected to biodegrade to substances                                          103                     Yellow
         List of prioritised substances in result                                                                                                         which could be environmentally hazardous
                                                                                            2                      Black
         objective 1 (priority list)
                                                                                                                                             1
                                                                                                                                                 A description of the category               3
                                                                                                                                                                                                 Substances hazardous to genes            5
                                                                                                                                                                                                                                              Removed from the red category
         Biodegradability < 20% and log Pow ≥ 5 5, 4                                        3                      Black                         is provided in the flow diagram.
                                                                                                                                                 Category in table 5-1 has been
                                                                                                                                                                                                 or reproduction are understood
                                                                                                                                                                                                 to mean mutagen categories (Mut)
                                                                                                                                                                                                                                              in the activities regulations.

                                                                                                                                                 related to category in table 6-1                1 and 2 and reproduction categories      6
                                                                                                                                                                                                                                              Commission regulation
                                                                                                                                                 to ensure correspondence with                   (Rep) 1 and 2, see appendix 1                987/2008. The NEA must
         Biodegradability < 20% and toxicity                                                                                                     reported figures in the two tables.             to the regulations on labelling,             assess whether the substance
                                                                                            4                      Black
         EC50 or LC50 ≤ 10 mg/l 4                                                                                                                                                                etc, of hazardous chemicals                  is covered by annex V.
                                                                                                                                             2
                                                                                                                                                 Removed from the black category                 or self-classification.
                                                                                                                                                 in the activities regulations.
                                                                                                                                                                                             4
                                                                                                                                                                                                 Data for degradability and bio-
         Two out of three categories:                                                                                                                                                            accumulation must accord with
                                                                                                                                                                                                 approved tests for offshore
         biodegradability < 60%, log Pow ≥ 3,                                               6                      Red                                                                           chemicals.
         EC50 or LC50 ≤ 10 mg/l 4
                                                                                                                                                    Green 	Chemicals considered to have no or very limited environmental impact.
                                                                                                                                                            Can be discharged without special conditions.
         Inorganic and EC50 or LC50 ≤ 1 mg/l                                                7                      Red                              Yellow Chemicals in use, but not covered by any of the other categories.
                                                                                                                                                            Can normally be discharged without specified conditions.
                                                                                                                                                    Red     Chemicals which must be given priority for substitution, but which
                                                                                                                                                            can be discharged with government permission.
         Biodegradability < 20% 4                                                           8                      Red                              Black Chemicals which the government can permit to be discharged in special circumstance
                                                                                                                                                            – where this is crucial for safety, for instance.

         14
FIGURE

                           DISCHARGES OF CHEMICAL ADDITIVES FROM THE NCS
                           BY THE NEA’S CATEGORIES (TONNES)

200 000                                                                  16 000                                                                  3 000                                                              50

180 000                                                                                                                                                                                                             45
                                                                         14 000
                                                                                                                                                 2 500
160 000                                                                                                                                                                                                             40
                                                                         12 000
140 000                                                                                                                                                                                                             35
                                                                                                                                                 2 000
                                                                         10 000
120 000                                                                                                                                                                                                             30

100 000                                                                   8 000                                                                  1 500                                                              25

  80 000                                                                                                                                                                                                            20
                                                                          6 000
                                                                                                                                                 1 000
  60 000                                                                                                                                                                                                            15
                                                                          4 000
  40 000                                                                                                                                                                                                            10
                                                                                                                                                  500
                                                                          2 000
  20 000                                                                                                                                                                                                             5

          0                                                                  0                                                                       0                                                               0
              98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16            98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16               98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16        98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

                        Green chemicals                                                     Yellow chemicals                                                       Red chemicals                                                   Black chemicals

                                                                                                                                                                                                                                                                                    23
4.5 UNINTENTIONAL SPILLS
     Unintentional 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 properties and quantity of the substance
     emitted/spilt, and when and where the incident occurred.

     Unintentional spills are classified             4 000 cubic metres, the second largest                               Unintentional chemical spills had an
     in three principal categories:                  oil spill on the NCS occurred in 2007.                               overall volume of 351 cubic metres
     ■	oil: diesel, heating, crude, waste           The combined volume in 2016 was                                      in 2016, including 367 tonnes of green
        and others                                   17 cubic metres.                                                     chemicals, 113 tonnes of yellow, just
     ■	chemicals and drilling fluid                                                                                      under three tonnes of red and 0.5
     ■	emissions to the air.                        UNINTENTIONAL CHEMICAL SPILLS                                        tonnes of black.
                                                     No similar declining trend can be seen
     Norway’s oil and gas industry pays great        for unintentional chemical spills. These                             Discharged volumes were dominated
     attention to adopting measures to reduce        have generally lain around 150-160 inci-                             in 2007-10 by individual years when
     incidents which cause unintentional             dents annually over the past six-seven                               leaks from injection wells were discov-
     spills. All spills down to less than a litre    years, but rose substantially in 2014 to                             ered. These are now shut in. The biggest
     are reported to the NEA in the annual           237 spills. Most of this increase occurred                           leak in 2016 was just under 75 cubic
     emission/discharge reports.                     in the size category below 50 litres, where                          metres from a tank holding monoeth-
                                                     the number doubled as a result of clarifi-                           ylene glycol (MEG), which mainly
     UNINTENTIONAL OIL SPILLS                        cations to the regulations which led                                 comprises green chemicals.
     Unintentional oil spills have generally         to fewer spills being classed as oil and
     declined in number over the past 20 years,      more grouped as chemicals. Just over
     with a clear downward trend since 2008.         160 spills occurred in 2016.
     The marked fall in the number of spills
     from 2013 to 2014 reflects a clarification
     of the regulations which reduced oil dis-

                                                             15
                                                    FIGURE

     charges but correspondingly increased                                UNINTENTIONAL OIL SPILLS TO THE SEA
                                                                          ON THE NCS
     unintentional releases of chemicals
     smaller than 50 litres. Thirty-nine inci-
     dents involving spillage of oil occurred       300

     in 2016, compared with 47 the year
     before. Spills larger than 50 litres have      250
     become steadily less frequent since
     1997. There were nine of these in 2016,
                                                    200
     compared with 23 the year before.

     A similar long-term decline can be              150

     observed for crude oil spills alone. There
     were 13 of these in 2016, including             100
     10 smaller than 50 litres, one in the
     range from 0.05 to one cubic metre                50
     and two above one cubic metre.

                                                             0
     The total volume of oil unintentionally
                                                                 97     98    99   00    01   02   03      04   05   06    07   08   09   10   11   12   13   14   15   16
     spilt varies substantially from year to
     year, with the statistics affected by large                      Larger than 50 litres        Total
     single incidents. Totalling more than

24
16                                                                     17
FIGURE

                    UNINTENTIONAL CRUDE OIL SPILLS

                                                                           FIGURE
                                                                                             VOLUME OF UNINTENTIONAL OIL SPILLS
                    TO THE SEA ON THE NCS                                                    ON THE NCS (CU.M)

140                                                                        5 000

                                                                           4 500
120
                                                                           4 000

100                                                                        3 500

                                                                           3 000
   80
                                                                           2 500
   60
                                                                           2 000

   40                                                                      1 500

                                                                           1 000
   20
                                                                               500

         0                                                                          0
             97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16                97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

                Smaller than      0.05-1 cu.m         Larger than
                0.05 cu.m                             1 cu.m

             18                                                                     19
FIGURE

                    UNINTENTIONAL CHEMICAL SPILLS ON THE NCS
                                                                           FIGURE

                                                                                             TOTAL VOLUME OF UNINTENTIONAL
                    BY THREE SIZES OF SPILL                                                  CHEMICAL SPILLS (CU.M)

250                                                                        14 000

                                                                           12 000
200

                                                                           10 000

150
                                                                              8 000

                                                                              6 000
100

                                                                              4 000

   50
                                                                              2 000

         0                                                                          0
             97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16                97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

                  Smaller than          0.05-1 cu.m        Larger than
                  0.05 cu.m                                1 cu.m

                                                                                                                                                      25
5
    OFFSHORE OPERATIONS
    AND THE MARINE
    ENVIRONMENT
    LIKE ALL OTHER HUMAN ACTIVITY, OIL AND GAS PRODUCTION
    INVOLVES A RISK OF AFFECTING THE ENVIRONMENT.
    SUCH EFFECTS CAN BE CAUSED BY BOTH OPERATIONAL
    DISCHARGES AND ACUTE (UNINTENTIONAL) INCIDENTS
    WHICH LEAD TO DISCHARGES TO THE SEA.
5.1 ENVIRONMENTAL MONITORING
The industry has worked systematically to reduce and prevent discharges. Substantial resources have
also been devoted to understanding which discharges could cause effects, so that the most effective
measures can be implemented. This commitment covers mapping and monitoring of the climate to assess
its condition, developing better methods for environmental monitoring, and research. Both preventive
and consequence-reducing measures are utilised, such as replacing chemicals (see section 4.4)
and oil spill clean-up.

The oil and gas sector conducts extensive     in the intervening periods, while each        of this surveillance work. It concluded
environmental monitoring of the NCS on        survey will acquire more data. The next       that theoretically possible toxic concen-
an annual basis. This aims to document        major survey is scheduled for 2017.           trations extend no more than 1 000-2 000
the condition of the environment and its      Surveillance will continue to be based on     metres from the release point, and that
development as a result of both human         investigating caged mussels at increasing     significant biological effects are limited
impacts and natural variations. Substantial   distances (500, 1 000 and 2 000 metres)       to a distance of less than 1 000 metres.
research work is also being pursued by        from the installations and on wild fish
individual companies as well as through       caught around the discharge sites. The        SEDIMENT MONITORING – SEABED
funding from Norwegian Oil and Gas to         research institutions which will conduct      INVESTIGATIONS
such bodies as the Research Council of        the water column monitoring are the           Environmental monitoring has been under
Norway. These activities cover both the       International Research Institute of           way since the early 1970s. A major meeting
development of monitoring methods             Stavanger (Iris), the Norwegian Institute     of scientists, civil servants and industry
and improved understanding of the im-         for Water Research (Niva), Sintef and the     representatives in the late 1980s laid
pact of petroleum industry discharges         Norwegian Institute of Marine Research.       the basis for more systematic conduct
on the marine environment.                    The programme is designed to identify         of sediment surveillance.
                                              possible effects in the immediate vicinity
Monitoring covers investigations of the       of a discharge as well as regional impacts.   A regional approach, with monitoring
water column and benthic sediments                                                          of each region every three years, was
and fauna, as well as visual inspection       This year’s survey will concentrate on        introduced in 1996. In addition, a base-
of the seabed in areas where species          the immediate vicinity of Statfjord A and     line investigation must be conducted
assumed to be particularly vulnerable         on regional stations in the Tampen area,      for each field before it comes on stream
to discharges (corals, sponges and so         the Egersund Bank and the southern end        to document its natural environmental
forth) are present.                           of the NCS. Attention will be focused on      condition. The NCS is divided into 11 geo-
                                              produced water and possible links with        graphic regions for seabed monitoring,
WATER-COLUMN MONITORING                       the drill cuttings pile at Statfjord A.       which is conducted in accordance with
Produced water discharged to the sea                                                        standards described in the NEA’s guide-
contains chemical compounds which             Discharges of produced water from all         lines. Carried out by independent consult-
could be toxic for marine organisms.          fields on the NCS totalled roughly 138        ants, the scale of this work must be related
Possible effects of discharges are            million cubic metres in 2016, down            to offshore petroleum activities in each
assessed with the aid of both risk anal-      by about seven per cent from the year         region. Scope, methods used and results
yses (EIF, see section 4.3) and environ-      before. Some 1 700 tonnes of dispersed        are reviewed and quality assured by
mental monitoring.                            oil were discharged in produced water         a panel of experts on behalf of the NEA.
                                              during 2016, spread across all dis-
Extensive changes to procedures for           charge points.                                Monitoring of benthic habitats involves
water column monitoring have been                                                           sampling the seabed – usually with the
made by the NEA. The recommended              Produced water is rapidly diluted by          aid of a grab – followed by sediment
approach is now to conduct a large-scale      ocean currents after discharge from the       analyses to establish its physical, chem-
survey every three years, rather than the     installations. This has been verified by      ical and biological condition. Some stations
smaller annual inspections carried out        water column monitoring. An independ-         have been investigated regularly for more
previously. This will provide better time     ent panel of experts reviewed both            than 30 years, and the data are therefore
for further development of methods            monitoring techniques and the results

                                                                                                                                           27
very valuable to scientists and govern-                              A number of major research projects             Since these publications appeared, the
     ment in assessing both natural and                                   and programmes have been pursued                Barents Sea drill cuttings research initi-
     anthropogenic changes to the environ-                                by independent scientists to study              ative has begun. Initiated by Eni Norge,
     ment over time. Great interest there-                                possible effects of oil and gas industry        this project has a time frame of five years.
     fore exists in applying this material to                             discharges to the sea. These include the        It aims to provide information about
     the government’s administrative work,                                Research Council of Norway’s Marinforsk         the extent of effects from drill cutting
     along with data from the big Mareano                                 programme, launched in 2015, and the            discharges over time through studies
     mapping programme. A project has                                     earlier Oceans and Coastal Areas (Proof/        of seabed biology and ecology, geology
     accordingly been pursued in 2016-17                                  Proofny) which has run for more than            and oceanography. The initiative is
     to assess the comparability of the two                               a decade. Surveillance results have been        a collaboration between the University
     data sets. Its findings will be published                            used in a number of scientific papers.          of Tromsø, Akvaplan-Niva and the
     during 2017.                                                         Both Proofny and the environmental              Northern Research Institute (Norut).
                                                                          monitoring data have been presented             Wells drilled from 1989 to 2015 are
     The monitoring programme is one of                                   in review articles or reports where all         being investigated. Samples were taken
     the most extensive conducted regularly                               results and earlier papers are reviewed. 1, 2   in a straight line from the discharge
     on the North Atlantic seabed, and covers                                                                             point to distances of 30, 60, 125 and
     an estimated 1 000 stations on the NCS.                              Both reviews conclude that the poten-           250 metres. This is closer than regular
     Of these, about 700 are in the North Sea.                            tial for environmental harm from the            sediment monitoring, where samples
     Once the production phase has ceased,                                discharges is generally moderate, and           are not taken at distances of less than
     two further rounds of investigations                                 that the concentrations which have              250 metres.
     are conducted at three-year intervals.                               yielded effects in laboratory studies
                                                                          do not normally occur more than about           The preliminary conclusion is that
     All data are stored in the MOD database,                             a kilometre from the discharge sources          drilling operations which involve dis-
     which can be accessed by scientists and                              and usually only a few hundred metres           charging drill cuttings cause local effects,
     government agencies. The MOD was                                     from the installations. The impact of           such as reduced oxygen levels and
     modernised and transferred to an                                     discharges from drilling operations is          a smaller number of faunal species.
     improved software platform in 2016,                                  only detectable in the immediate vicinity       However, their scope is limited to the
     and the new version is now available.                                of the well site. Effects on benthic organ-     immediate vicinity of the discharges
     Its information can also be exchanged                                isms primarily derive from physical             (less than 300 metres) and their impact
     with the Norwegian Maritime Data Centre                              factors (particle discharges) and often         is greatest in the first three years after
     (NMDC), which has a large number                                     cannot be distinguished from the impact         their release. The area where visual
     of partners (www.nmdc.no). Updated                                   of the actual structure (platform) on           effects can be seen is within 100-200
     reports will be issued in the autumn                                 currents and thereby on particle size           metres for new wells. Older wells show
     of 2017, when the final environmental                                in the sediment.                                such impacts at a distance of only 10-30
     monitoring results from 2016 also                                                                                    metres, which indicates a rapid re-
     become available.                                                                                                    establishment of normal fauna.

      Bakke et al, 2013. “Environmental impacts of produced water and drilling waste discharges from the
     1

      Norwegian offshore petroleum industry”. Marine Environmental Research, vol 92, pp 154–169.
      Bakke et al, 2012, Langtidsvirkninger av utslipp til sjø fra petroleumsvirksomheten. Resultater fra ti års
     2

      forskning. Report from the Research Council of Norway (ISBN 978-82-12-03027).

28
VISUAL INSPECTIONS                           DNV GL presented a collation of results
Visual inspections are carried out before    from many studies of areas with vulner-
planned exploration drilling can begin       able benthic habitats, with the emphasis     The Norwegian Institute
in areas which may contain organisms         on sponges, to the 2016 Environmental        of Marine Research has
regarded, on the basis of the precau-        Monitoring Forum. This work was based
tionary principle, as particularly vulner-   on Ospar’s regional divisions from Spain     concluded that no harm
able to drilling discharges. The industry    in the south (region V) to region I, which   to coral reefs from petro-
has developed guidelines for such            embraces the Norwegian coast from the
                                                                                          leum activities has been
surveys where deepwater corals are           62nd parallel to north of Spitsbergen.
present. At the same time, substantial       Particularly important sponge commu-         demonstrated. This work
work is being devoted to developing          nities with high densities of genera such    is now being extended to
methods and procedures for preliminary       as Geodia are found on the Tromsø Patch.
investigations to avoid physical damage      Sponges are sensitive to physical stress
                                                                                          cover sponge communi-
to coral reefs, sponge communities           from such activities as mooring rigs,        ties and various sponge
and the like. The Norwegian Institute        installing structures on the seabed or       species.
of Marine Research has concluded that        fishing – particularly with bottom trawls.
no harm to coral reefs from petroleum        The results suggest that trawling is the
activities has ever been demonstrated.       most important source of stress for
This work is now being extended to           sponge communities. Some areas expe-
cover sponge communities and                 rience up to 27 000 trawling hours per
various sponge species.                      annum at peak, and trawl-door tracks
                                             were registered – as frequently as every
                                             25 metres in some areas – on the seabed
                                             where dead sponges could be found.

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