Olje- og energidepartementetwww.regjeringen.no/oed Norway – a leading energy supplier to the European market Gunnar Gjerde Director General Ministry of Petroleum and Energy September 18th, 2008
Olje- og energidepartementetwww.regjeringen.no/oed Challenges and Responsibility Global challenges: Stable supply of energy Increasing CO2-emissions Responsibility: Large exporter of energy Environmentally friendly technology and politicies
Olje- og energidepartementetwww.regjeringen.no/oed Norway – an energy rich nation 1. Oil 2. Natural gas 3. Electricity 5th largest 3rd largest 6th largest Exporter exporter producer of hydro, power, small exporter Vision remain a reliable, long term exporter of energy
Olje- og energidepartementetwww.regjeringen.no/oed 1. Oil - a global commodity Source: KBC Market Services The largest oil exporters and producers in 2007
Olje- og energidepartementetwww.regjeringen.no/oed Historic and expected Norwegian oil production * Including NGL and condensate Sources: Ministry of Petroleum and Energy and Norwegian Petroleum Directorate
Olje- og energidepartementetwww.regjeringen.no/oed Total (83 bill. barrels o.e.) The North Sea (53 bill. barrels o.e.) The Norwegian Sea (20 bill. barrels o.e.) The Barents Sea (8 bill. barrels o.e.) Source: Norwegian Petroleum Directorate Petroleum resources on the NCS
Olje- og energidepartementetwww.regjeringen.no/oed Undiscovered resources by area 35 % in the North Sea 35 % in the Norwegian Sea 30 % in the Barents Sea Degree of uncertainty depends on degree of maturity Uncertainty interval much larger in the Barents Sea
Olje- og energidepartementetwww.regjeringen.no/oed 2. Natural Gas Source: The Petroleum Economist
Olje- og energidepartementetwww.regjeringen.no/oed Source: CERA, BP European natural gas demand By means of supply (bn m3) Source: CERA Top 5 European gas markets Consumption 2007 (bn m3)
Olje- og energidepartementetwww.regjeringen.no/oed Historic and expected Russian and Norwegian gas exports to Europe Sources: Ministry of Petroleum and Energy, Norwegian Petroleum Directorate, PIRA Russia Norway (incl. Snøhvit LNG)
Olje- og energidepartementetwww.regjeringen.no/oedMap: Eurogas Norwegian share of gas-consumption in 2007 France 31 % Germany 30 % UK 25 % In total Norway supplies about 18 % of the EU gas consumption Belgium 35 %
Olje- og energidepartementetwww.regjeringen.no/oed The Norwegian gas sector Around 40 producing fields. About km of upstream pipelines Landing points in 4 EU countries Troll gas expansion and the GNE pipeline project was cancelled due to concerns for oil recovery Gassco will continue to develop the Norwegian infrastructure capacity and flexibility Skanled – A Scandinavian Pipeline
Olje- og energidepartementetwww.regjeringen.no/oed 3. Electricity Hydro power: - 96 per cent of the Norwegian electricity production - The 6th largest hydro power producer in the world, largest in Europe Large unutilized renewable energy potential: - wind power - bio power - tidal and wave power
Olje- og energidepartementetwww.regjeringen.no/oed Substitution of coal by gas Norwegian gas exports expected to increase by at least 40 bcm/y within next decade from 2007-levels If 75 % of the volumes replaces coal to power, Norwegian gas exports can contribute to reduced emissions of 93 Mt CO2e in Europe Corresponds to 1,5 times the expected Norwegian CO2-emissions in 2020
Olje- og energidepartementetwww.regjeringen.no/oed CO2 emissions from production in Norway compared to the international average Source: International Association of Oil and Gas Producers
Olje- og energidepartementetwww.regjeringen.no/oed Carbon Capture and Storage (CCS) The world needs energy IEA: Fossil fuels will remain main source of energy supply to 2050 CCS combines use of fossil fuels with reduced CO2-emissions IEA: CCS could account for 20 % of global CO2-reduction CCS-project at Mongstad tons CO2 from test centre 1,3 million tons CO2 from full scale capture facility
Olje- og energidepartementetwww.regjeringen.no/oed Norway – a leading energy supplier to the European market Gunnar Gjerde Director General Ministry of Petroleum and Energy September 18th, 2008