Norway's Statoil said it aims to cut its carbon footprint more aggressively as measures to reduce global warming could reduce the value of its assets, leaving some of its reserves stranded underground.
The possibility that large quantities of the world's oil will never be developed due to the increase of renewable energy and the electrification of transport has been a growing worry for investors in the oil sector.
Statoil, Norway's largest company, started stress-testing its portfolio of oil and gas assets against global energy scenarios set out by the International Energy Agency (IEA) at shareholders' request in 2015. The IEA's Sustainable Development Scenario analyses the likely impact of energy policies by 2040.
"The net present value (of Statoil's portfolio) will be reduced by 13pc under the IEA (Sustainable Development) Scenario," Statoil's chief executive Eldar Saetre said.
However, he said that would still leave Statoil's portfolio with a "massive" net present value (NPV).
The IEA says its scenario is aligned with the Paris Agreement goals to keep global warming from exceeding 2 degrees Celsius.
Saetre was speaking on the sidelines of a Statoil presentation to investors in London, where the company announced plans to reduce emissions from some of its new fields to 3kg of CO2 per barrel of oil equivalents (boe), which is less than a fifth of the global average.
Its carbon intensity at its offshore fields stood at 9kg per boe in 2017, compared to a global average of 17kg per boe.
Statoil said optimisation and efficiency improvements have substantially strengthened its portfolio, which includes the giant Johan Sverdrup oilfield off the coast of Norway.
The field will be powered from shore instead of generating electricity by offshore gas turbines, the main source of emissions on the Norwegian continental shelf.