Facing the energy transition: options for countries and companies to move forward

Abstract

Abstract It has taken decades for the international community to recognize that climate change is a global issue that needs to be addressed by concerted international action. Many climate activists focus on the fossil fuel industry as the main culprit for greenhouse gas emissions and advocate for a cessation of investments in this sector. This is despite the fact that it is the use of oil and gas in housing, transportation and industry, not its production that represents over 90 per cent of its global emissions.1 This misrepresents the global challenge that is one facing society’s energy use at large. During this period of energy transition, and for decades to come, oil and gas will continue to constitute a major component of the world’s growing energy demand. All energy consumers, whether governments, industries and the general public therefore need to reduce their energy consumption, while producing countries and companies need to reduce their carbon footprint, as well as increase investments in renewable energy. In this context, Norway serves as a valuable case study of what it takes to become a carbon efficient energy producer. The example of Lundin Energy AB, one of Europe’s leading independent oil and gas producers, operating exclusively offshore Norway, shows how the Norwegian regulatory environment, coupled with the Company’s sustainability commitments and its Decarbonization Strategy, have resulted in the production of one of the lowest carbon intensity barrels in the world.