As a western industrial nation and a major oil exporter, Norway has a number of different interests. Norway has about 50 per cent of the remaining oil and gas reserves in Western Europe, which means that we have many of the same interests as other oil exporters within and outside OPEC. At the same time Norway takes part in the energy policy co-operation in the International Energy Agency (IEA) together with other OECD countries, who are our most important political and economic co-operation partners.
Norwegian policy is to maintain the price of oil at a stable, reasonably high level that:
- makes it possible for Norway to contribute to the energy supply security of its trading partners by supplying them with oil and gas on a stable, long-term basis
- does not trigger the political conflict between oil-exporting and oil-importing countries that could arise because of oil’s importance as a strategic raw material
- promotes sustainable economic development at a global level through effective, environmentally friendly use of energy
Norway has been a prime mover in the dialogue between oil consumers and producers that has now been institutionalised in the International Energy Forum. A secretariat for the Forum was established in Saudi Arabia in 2003.
In 2002 Norway exported an average of 3.1 million barrels a day, making it the third largest exporter of crude oil in the world, after Saudi Arabia and Russia. The most important markets (first recipients) outside Norway were the UK, the Netherlands, France, Germany and the US. Total crude oil production averaged 3.3 million barrels a day. The government aims to maintain oil production for at least another 50 years.
Norway is the world’s fourth largest gas exporter, after Russia, Canada and Algeria, and the third largest gas exporter to Europe after Russia and Algeria. Gas from the Norwegian continental shelf accounts for about 11 per cent of total European gas consumption, and this percentage is expected to increase. Given the level of proven resources, and measures to enhance extraction, the present level of gas production can be maintained for about 100 years. In other words, gas will play a more and more important role in Norwegian petroleum activities.
In 2002 the export value of sales of crude oil and natural gas was about NOK 281.5 billion (approx. EUR 35,2 billion), approximately 44 per cent of total Norwegian exports, and the petroleum industry’s share of GDP was about 19 per cent.
In order to prevent petroleum revenues from having a negative impact on the country’s economy, and to protect the country against budget deficits caused by demographic factors, the Starting (the Norwegian parliament) established the Norwegian Government Petroleum Fund in 1990. The Fund’s income consists of the central government’s net cash flow from petroleum activities and the return on the Fund’s capital. At the end of 2002, the value of the Fund was about NOK 609 billion (approx. EUR 76,13 billion). The value dropped by about NOK 4.5 billion (approx. EUR 563 million) in 2002.
The Norwegian Ministry of Foreign Affairs