handle recent rapid changes in the US industry that have
been driven by dramatic technological exploration and production breakthroughs, Perry told council members at the
NPC’s Sept. 25 meeting.
“All that energy has to be delivered, and that means that
our energy transportation infrastructure must be up to the
job. We have to invest more in our infrastructure,” Perry
Perry’s formal request for the study asked for a comparison between the current state of pipelines and other energy
transportation assets and expected needs for transport under varying supply and demand assumptions, an NPC representative said after the meeting.
She said Perry would like it to identify technological advances that can improve the transportation system’s safety
and reliability while minimizing environmental impacts.
The study also should explore options to improve infrastructure siting that will make the system more resilient.
“I think it’s been more than a decade since the NPC has
done a study of oil and gas-related infrastructure: the needs,
challenges, and opportunities that are in front of us. Given
all that has changed over the last 15 years, I believe we need
a new study,” Perry declared.
Perry’s request for the second study came 3 days after
DOE announced $36 million in funding to support cost-shared research and development on ways to move CCS
projects to either the engineering scale or a commercial design (OGJ Online, Sept. 27, 2017).
He said that in 2008, federal offshore oil and gas activity
generated $18 billion in revenue, while only $2.6 billion was
produced in 2016. “That lost $15 billion could have helped
reduce maintenance backlogs at the National Parks and Fish
& Wildlife Services. Our national parks shouldn’t be a political issue. They’re national treasures and should be maintained better.
“Our nation is winning again economically, and frankly
energy is driving the bus,” said Zinke. “With a strong energy
industry and infrastructure, we’ll truly make America great
Perry asks NPC to
conduct studies on oil,
gas transportation, CCS
US Energy Sec. Rick Perry asked the National Petroleum
Council to conduct separate studies on the nation’s oil and
gas transportation system as well as on possible ways to
commercialize carbon capture and storage (CCS).
The current transportation network is not adequate to
Statoil, Shell, Total partner on Norway CCS project
Statoil ASA is leading a new partnership with Norske Shell
AS and Total E&P Norge AS to develop a large-scale carbon capture and storage (CCS) project on the Norwegian
The project will store carbon dioxide captured from
onshore industrial facilities in Eastern Norway, with a
first-phase capacity of up to 1.5 million tonnes/year before
possible future expansions.
Carbon dioxide will be transported from the capture
facilities by ship to a receiving terminal on the west coast
of Norway. At the receiving terminal, the CO2 will be
transferred to intermediate storage tanks before being sent
through a pipeline on the seabed to injection wells east of
Troll field on the NCS.
Three possible locations for the receiving terminal have
been identified, and a final selection will be made later this
The partners say the project will have “the potential to
be the first storage project site in the world receiving CO2
from industrial sources in several countries,” and they
hope it will “stimulate new commercial carbon capture
projects in Norway, Europe, and more globally.”
The collaboration is expected to serve as a basis for
establishing an expanded partnership for the construction
and operational phases.
Norway state-owned CCS firm Gassnova SF in June
awarded Statoil a contract for concept and front-end engineering design studies for the project. Statoil has experience with CCS on the NCS via Snohvit and Sleipner fields,
the latter of which has stored 17 million tonnes of CO2 over
the last 20 years.
“Statoil believes that without carbon capture and storage, it is not realistic to meet the global climate target as
defined in the Paris Agreement,” said Irene Rummelhoff,
Statoil executive vice-president for new energy solutions.
“A massive scale up of the number of CCS projects are
needed, and collaboration and sharing of knowledge are
essential to accelerating the development.”