Statoil is a multinational company that provides energy sources, such as gas and oil. It exists in at least 30 countries around the world. The company is experienced in light of oil and gas production in Norway. Statoil is focused on addressing the energy needs of the world in a sustainable manner. The company's headquarters are in Norway. It has over 23000 employees worldwide. It is listed on both the New York stock exchange and Oslo stock exchange (Ferris & Rankine 2008).
Statoil believes that it is important to meet the needs of the customers. They set objectives to meet the safety and health of the community. They contribute to a sustainable environment in the counties that they operate in. This will be essential in maintaining a good economic development. The company is committed to openness and anti-corruption of work. Statoil believes in respecting the employee and individual rights (Ferris & Rankine 2008).
Biofuel is fuel that is gotten from a mass of recent organisms. It is a type of energy that is produced by organism and the remains that living things produce (Demibras 2009). The government of the United Kingdom plans to increase the use of biofuel. Thus, biofuel will be important in the supply of energy sources in the country. The government has suggested that there should be an increased proportion of biofuel in the percentage of petrol and the diesel Englishmen demand. The government plans to increase the production and supply of biofuel by 5%. The United Kingdom government suggests that the use of biofuel will take a stable position in the market only when the sustainability problems are addressed. This will be the most used fuel in the history of biofuel consumption. Modern production of biofuel is the best in ensuring that emissions are safe. This will be vital in reducing global warming in the world, as far as fossil fuels emissions affect the ozone layer.
The growth in the use of biofuel increases the use of fuel crops and it will lead to a raise in prices for food. This has an impact on the food security in the United Kingdom. Developing countries that plan to use the biofuel production might suffer the implication of food price fluctuations (Demibras 2009).
The United Kingdom has received approval and support from the European Union for selecting biofuel (Pimentel 2010). The approval and support grants the increased interest in the production of biofuel. Statoil has received the approval of this project from the United Kingdom Department of Energy. The company plans to invest in the biofuel introduction in the United Kingdom in the near future. The project will be the largest development in the offshore. This investment focuses on reducing the dependence on fossil fuel in the United Kingdom, because it affects the ozone layer of the Earth (Demibras, 2009).
Biofuel production will be an important aspect when dealing with the issues of energy security. The volatility of energy prices will decrease significantly. Statoil plans to start production in the 2017 in the Mariner oilfield. The field is expected to produce enough biofuel energy for 30 years. It is located in the North Sea of the United Kingdom. Statoil plans to set up a center of operation that will be used to execute their project. The Mariner field was acquired by Statoil in 2007.
The United Kingdoms' emission of carbon dioxide is currently at its lowest level, according to the Department of Energy in the United Kingdom. The main reason to this was the increased use of nuclear energy. The levels of emission have fallen to just 456 million tons in a year. The diesel produced as biofuel can reduce the carbon dioxide emissions in the United Kingdom. The use of bio fuels does not add to the emission of CO2. Fossil fuel releases carbon dioxide to the air, which is stored carbon of fuels that was in the underground (Pimentel 2010).
Liquefied natural gas production has increased in the United Kingdom in the past. Statoil is a long term provider of natural gas to the city of London. The company has a strong market for its product. The increased demand for natural gas has driven to the expansion of liquefied natural gas stations in the city. Statoil has made liquefied natural gas available to the majority of the convenient stores in the city. They have developed many ideas that led to the supply of the compressed natural gas that is a developed from earlier versions of liquefied natural gas (Demibras 2009). This invention of compressed natural gas has successfully been applied in Edinburgh.
Statoil is the second biggest supplier of natural gas in Europe and ranked sixth in the world. The future of natural gas in the United Kingdom looks to be promising. The technology of compressed gas will be highly appreciated by the citizens of the United Kingdom. The citizens of the United Kingdom use natural gas as the main domestic fuel. Moreover, it is also the main industrial fuel in most of the companies in the country. Its consumption will increase mainly because it has a safe method of transporting fuel. Liquefied natural gas and compressed natural gas are safer to use than the fossil fuels (Ferris & Rankine 2008).
Health and safety standards of individuals are an important aspect to the well-being of the citizens. Natural gas is a much safer, as it is a source of energy that is lighter than air ; thus it generally prevents over pressurization. The method of storing natural gas makes it safer to use than the fossil fuels. It is unlikely to ignite compared to diesel when in transit. Natural gas, however, has a higher ignition point than diesel (Demibras 2009). Use of natural gas in the United Kingdom helps to maintain the carbon emission into the environment at a minimal. Statoil helps the United Kingdom government to realize their dream of increasing the supply of natural gas to the economy.
The increased supply of natural gas by Statoil will provide job opportunities for the citizens of the United Kingdom. The increased demand for natural gas will lead to larger number of jobs available for the majority of the population (Ferris & Rankine 2008).
Government will be pleased with the increased production of natural gas in the United Kingdom. It will help to increase the level of taxation and provide jobs for the citizens. This investment enables the government to realize its strategic plans. Moreover, the increase in use of this technology will result to the increased deterioration of land due to some of the harsh method of the production. The negative effects that the production of fossil fuel releases affect the environment and the community members (Pimentel 2010).
The Current Situation of Biofuel in the United Kingdom
Analysis has shown that energy that is extracted from vegetable oil has a better impact on the environment than the fossil fuels. The United Kingdom has no current policies that control the impacts of biofuels production on food security. The government also plans to incorporate the policies that address deforestation in the country. Statoil should consider revising policies that will meet the sustainability standards of the European Union. The current policies in biofuel production do not ensure sustainability. The use of land indirectly is also not discussed in the United Kingdom.
Biofuels are a good alternative for fossil fuel consumption in the country. However, it is an expensive method that will increase the cost of transport in the United Kingdom. It is not cost effective in reducing the emissions of the transport, because it is expensive (Demibras 2009).
The use of agricultural biofuel causes the indirect increase in the prices of food in the economy of the United Kingdom. Food prices are a very sensitive issue. Biofuel production in the United Kingdom drives individuals to infringe the rainforests of the country. This means that they will use land for other purpose for which they were not intended (Demibras 2009).
Production of bio diesel from products such as cooking oil offers the most favorable sustainable features. However, there might be caution that the indirect emissions may increase as compared to level of its normal use.
The increase of biofuel by 5% is likely to cost the government of the United Kingdom a significant amount of money. This will be transferred to the customers of the fuel. The automobilists are likely to dig deep into their pockets. It is estimated that it will cost the automobilists close to $700 annually. This will increase the cost of living for the individuals if it is to become one of the major sources of fuel in the country. If the United Kingdom meets the regulation of the European Union, then the annual cost transferred to drivers might be approximately $ 2 billion dollars annually. This will significantly increase the cost of transport in the United Kingdom and it will lead increased expenses for the government.