1. 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

2. 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

3. 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

4. Olje- og energidepartementetwww.regjeringen.no/oed 1. Oil - a global commodity Source: KBC Market Services The largest oil exporters and producers in 2007

5. 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

6. 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

7. 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

8. Olje- og energidepartementetwww.regjeringen.no/oed 2. Natural Gas Source: The Petroleum Economist

9. 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)

10. 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)

11. 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 %

12. Olje- og energidepartementetwww.regjeringen.no/oed The Norwegian gas sector Around 40 producing fields. About 8 000 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

13. 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

14. 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

15. 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

16. 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 100.000 tons CO2 from test centre 1,3 million tons CO2 from full scale capture facility

17. 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