Greens slam Statoil shale oil increase / News / The Foreigner

Greens slam Statoil shale oil increase. Leading politicians and environmentalists are calling for Statoil to be split following the company’s recent environment-hostile shopping spree. Statoil announced, Monday, it had purchased shale oil company Brigham Exploration Company for 24, 5 billion kroner. The deal gives the company access to oil deposits Bakken and Three Forks in US states North Dakota and Montana, with an estimated surface use of 1500 square kilometers. It comes in addition to Statoil’s 12 billion kroner investment in controversial Canadian oil sands. Extracting shale oil is considered to be bad for the climate because of the contentious method known as “fracking” (hydraulic fracturing), which uses pressurized fluid to cause and generate a fracture in the rock. The process can pollute water with chemicals.  

statoil, usandcanadianoilsands, brighamexplorationcompanypurchase



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Greens slam Statoil shale oil increase

Published on Wednesday, 19th October, 2011 at 22:59 under the news category, by Michael Sandelson and Oana Pintilie   .
Last Updated on 19th October 2011 at 23:11.

Leading politicians and environmentalists are calling for Statoil to be split following the company’s recent environment-hostile shopping spree.

Snorre Valen MP
Snorre Valen MP
Photo: SV


Statoil announced, Monday, it had purchased shale oil company Brigham Exploration Company for 24, 5 billion kroner. The deal gives the company access to oil deposits Bakken and Three Forks in US states North Dakota and Montana, with an estimated surface use of 1500 square kilometers. It comes in addition to Statoil’s 12 billion kroner investment in controversial Canadian oil sands.

Extracting shale oil is considered to be bad for the climate because of the contentious method known as “fracking” (hydraulic fracturing), which uses pressurized fluid to cause and generate a fracture in the rock. The process can pollute water with chemicals.  

Reacting to the news, Socialist Left (SV) politician Snorre Valen MP argues the time has come to divide Statoil to give its renewable energy development a lift.

“All we have to do is separate this part of Statoil and set its people free,” he says to Dagsavisen, at the same time also criticising Norway’s Sovereign Wealth Fund (Government Pension Fund Global/Oil Fund) for investing in oil sands and major companies accused of destroying rainforests.

The World Wildlife Fund (WWF) estimates the Fund has put 116 billion kroner into oil sands, 79 billion of it invested in companies involved in extraction.

“This is money that could have helped solve the world’s renewable energy challenges. Instead, we tie the money up in productions that worsen the process,” says Mr Valen, fearing for Norway’s international climate-based reputation.

The Norwegian Climate Foundation proposes the government sells off its stocks in climate-hostile businesses, divide Statoil into several parts, and list most of them on the Stock Exchange.

General Manager Anders Bjartnes says, “We’re then left with Statoil Classic, a large company with a high state ownership, which can conduct offshore activities in countries such as Brazil and Angola, as well as emptying the Norwegian Continental Shelf in a cost-effective and environmentally-correct way.”

“This could be an oil company that safely operates within the framework set by the two-degree target,” he continues.

Amongst calls for government intervention and a redefinition of state ownership, Statoil CEO Helge Lund talked about what he saw as a positive purchase.

He told NRK, “We believed that so-called called unconventional resources will play a greater role in the world’s energy supply. We want to play an industrial role within this area, and believe we have the subterranean expertise, technology and the capital to be able to add significant value to this kind of resources.”




Published on Wednesday, 19th October, 2011 at 22:59 under the news category, by Michael Sandelson and Oana Pintilie   .
Last updated on 19th October 2011 at 23:11.

This post has the following tags: statoil, usandcanadianoilsands, brighamexplorationcompanypurchase.





  
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