Norwegian Petroleum Policies State Secretary Anita Utseth The 16th International Petroleum Tax Conference Hotel Bristol, Oslo 03.11.2005
Global energy demand 2002-2030 Biomass 11 % Hydro 2 % Other renewables 1 % Coal 23 % Biomass 10 % Hydro 2 % Nuclear 5 % Other renewables 2 % Coal 22 % Nuclear 7 % Gas 21 % Gas 25 % Oil 35 % Oil 34 % Source: The International Energy Agency 2002 + 60 % 2030
Oil Market Oil demand is expected to grow relatively fast, particularly in countries like China and India Growth in the transportation sector. No realistic alternatives to oil in the foreseeable future. OPEC will have to supply most of the new capacity. E&P costs, large discoveries and production in major producing provinces outside OPEC Reasonably high oil and gas prices are necessary to stimulate non- OPEC supply MMBbls/d 120 100 80 60 40 20 0 World Oil Demand 2002 2010 2020 2030 World demand Oil Non-OPEC supply Source:IEA 2004
Petroleum resources on the NCS 12.9 bill Scm o.e. 31 % 31 % Sold and delivered Reserves Contingent resources Yet to Find 26 % 12 % Source: MPE/NPD RNB 2005
Investments* on the NCS bn NOK 2006 Value 90 80 70 60 50 40 30 20 10 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Decided projects and pipelines/onshore Not decided projects *Investments in exploration not included Source: MPE/NPD NB 2006
Total petroleum production 350 300 Mill Scm o.e./year 250 200 150 100 50 0 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 Oil production NGL (included condensate) Gas sale Source: MPE/NPD NB 2006
A vital, safe and stable industry A stable activity level World leading in technology and environmental issues A diverse set of companies with different skills and ideas Export Norwegian expertise to other petroleum provinces World class HSE standards
Activity level - Exploration 60 50 Estimate 2005 Appraisal Wildcat 40 30 20 10 0 66 69 72 75 78 81 84 87 90 93 96 99 02 05* *until Oct 27
Activity level - Licensing
Increased Oil Recovery (IOR) Five billion barrels of extra oil reserves before 2015 Research, development and demonstration Possibilities of using CO 2 for IOR purposes. Source: NPD
Doing business within a framework of sustainable development Focus on further emission reductions Estimate of CO2-emissions from Norwegian Continental Shelf Energy efficiency 18 Carbon capture and storage 16 Innovation and technology New development solutions Goal of zero harmful discharges to the sea, particularly strict regime in the Barents Sea. Million tonnes 14 12 10 8 6 4 2 0 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029 Source: MPE
International focus on the north Large petroleum resources World energy demand is increasing 1/3 of the undiscovered resources on the NCS Co-existence with fisheries, maritime activity, nature resources, and others
A policy for the North Political stability and sustainable development Combine petroleum activities with due consideration for a vulnerable environment Measures: Dialogues with relevant countries Further development of Norway s bilateral dialogue with Russia
Nordland/Lofoten and the Barents Sea No petroleum activities in Nordland VI Parliament will decide on whether to open other temporarily closed areas based on the integrated management plan for the Barents Sea The integrated management plan for the Barents Sea may open for application to IMO to give the area status as a PSSA area: Special regulation Source: NPD
Internet address www.oed.dep.no