1. 1 1 Compilation of Natural Gas Statistics in Norway Prepared for the UNSC side event on natural gas Olav Ljones Deputy director general, Statistics Norway Chair, Oslo Group on Energy statistics New York, 27.02.2012

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5. 5 Energy Balance for Norway Published twice a year –Preliminary: 4-5 months after end of year –Final: 22-23 months after end of year Links: –http://www.ssb.no/english/subjects/01/03/10/energiregn_en/http://www.ssb.no/english/subjects/01/03/10/energiregn_en/ –http://www.ssb.no/english/subjects/01/03/10/energiregn_en/tab-2011-12-12- 01-en.htmlhttp://www.ssb.no/english/subjects/01/03/10/energiregn_en/tab-2011-12-12- 01-en.html Summary: –More than 90 % of natural gas production is exported –4-5 % of production used within oil- and gas extraction (for electricity production, flaring, or venting) –1 % was used in thermal power plants in 2010 –The rest (around 1 %) is used in manufacturing industries, transport etc.

6. 6 Export of Natural Gas Around 93 % of the primary production of natural gas is exported Most of the gas is exported in pipelines to Europe –Ownership: the Gassled partnership –Operator: Gassco AS Some LNG production, but still a small share of total production

7. 7 Final consumption of energy products (Source: Energy Balance)

8. 8 The picture becomes different if consumption in energy industries is included

9. 9 Most natural gas is used within oil- and gas extraction

10. 10 Consumption of natural gas makes up an increasing share of total greenhouse gases in Norway – This is due to extensive, and increasing oil- and gas extraction

11. 11 Challenges in Norwegian gas statistics Challenge: –Large statistical differences in the energy balance! –Supply > Use (sometimes Use > supply)  Ongoing quality project to try to find the causes for the large differences

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14. 14 Large statistical differences makes emission calculations more uncertain Emissions becomes different if it is calculated by using –reference approach (data from the supply side) –sectorial approach (calculations based on consumption data) Supply > Consumption –Usually the supply (production) is larger than consumption, which means higher emissions in reference approach. Statistics Norway uses sectorial approach (consumption) –Statistics Norway relies most on calculations based on sectorial approach, however, we often get question because reference approach is used as a control of the results. This is one aspect which emphasizes the needs of high quality gas statistics

15. 15 Statistical difference could be related to many fields and complexity in gas- and pipeline structure in Norway

16. 16 Official statistics on natural gas (1 of 3) Export of natural gas –Monthly: sm 3 –Quarterly: sm 3, NOK (prices) –Secondary source: Division for external trade (Statistics Norway)  Primary source: Gassco, survey (companies) –Link: http://www.ssb.no/english/subjects/09/05/muh_en/http://www.ssb.no/english/subjects/09/05/muh_en/ Domestic use of natural gas –Annual: sm 3, GWh –Source: Survey (retailers) –Link: http://www.ssb.no/naturgass_en/http://www.ssb.no/naturgass_en/ Industrial energy use –Annual: GWh, NOK –Source: Survey (companies) –Note: Includes intermediate consumption for ALL energy products, not only natural gas –Link: http://www.ssb.no/english/subjects/10/07/indenergi_en/http://www.ssb.no/english/subjects/10/07/indenergi_en/

17. 17 Official statistics on natural gas (2 of 3) Structural business statistics –Annual: NOK (underlying data in sm 3 and NOK) –Sources: Survey, Norwegian Petroleum Directorate, Ministry of Petroleum and Energy, Gassco –Link: http://www.ssb.no/oljev_en/http://www.ssb.no/oljev_en/ Investment statistics –Quarterly: NOK (both accrued and estimated future investments in the oil and gas activity) –Source: Survey –Link: http://www.ssb.no/english/subjects/10/06/20/oljeinv_en/http://www.ssb.no/english/subjects/10/06/20/oljeinv_en/ Energy balance and energy accounts –Twice a year (preliminary and final figures): sm 3, GWh and PJ –Sources: Many different sources. Mainly other statistics produced in the Division for Energy and Environmental statistics. + Norwegian Petroleum Directorate, Ministry of Petroleum and Energy, Gassco –Link: http://www.ssb.no/english/subjects/01/03/10/energiregn_en/http://www.ssb.no/english/subjects/01/03/10/energiregn_en/

18. 18 Official statistics on natural gas (3 of 3) Production volume index –Monthly: Index –Source: Norwegian Petroleum Directorate –Link: http://www.ssb.no/english/subjects/08/04/pii_en/http://www.ssb.no/english/subjects/08/04/pii_en/ Producer price index –Monthly: Index –Source: World Gass Intelligence –Link: http://www.ssb.no/english/subjects/08/02/20/ppi_en/http://www.ssb.no/english/subjects/08/02/20/ppi_en/

19. 19 Main Sources - Summary Administrative sources Production, flaring: sm3, tonne, MJ Extraction industries own use: sm3, tonne, MJ Transport of natural gas in pipelines: sm3, NOK Export: sm3, NOK Survey (companies) Prices on natural gas Costs and investments in the extraction industry Domestic consumption

20. 20 The policy relevance of monthly data on natural gas Reliable and detailed data on natural gas is important inn order to monitor the revenues, production and export from month to month Users of monthly data on natural gas include: –The Government  Ministry of Finance  Ministry of Petroleum and Energy –Oil and gas companies –Media –International Agencies In Statistics Norway the monthly figures are important in: –The Quarterly National Accounts –Research and forecasting –Data reporting to international agencies

21. 21 Main challenges for Norway 1. Statistical difference in the energy balance (mentioned earlier) 2. Prices on natural gas 1.Several large revisions of export prices on natural gas This have led to large revisions in the Quarterly National Accounts 2.Inconsistency in prices across statistics External trade vs. structural business statistics 3.What is the correct price? Have to adjust for transport costs. External trade: Prices are measured at the border National Accounts: Prices are measured at the production site Internal sales within co-operations? What is the market price?  The problems with large revisions in prices and inconsistencies across statistics has led to the need for a thorough investigation of the prices on natural gas  Ongoing project to try to enhance the quality and consistency of prices on natural gas

22. 22 Report to JODI Gas First report from Statistics Norway in October 2009 Production of natural gas –Preliminary figures collected from The Ministry of Petroleum and Energy (press release between 10 th and 20 th, M+1) –Few problems meeting the deadline for JODI Gas –Preliminary figures very similar to final figures reported to MOS Export of natural gas –Preliminary figures collected from the Division for external trade in Statistics Norway –Few problems meeting the deadline for JODI Gas –However: Some problems with LNG → Finding the right country of destination for LNG is often challenging –Preliminary figures very similar to final figures reported to MOS

23. 23 The Oslo Group on Energy Statistics The International Recommendations for Energy Statiscs (IRES) Adopted by the UNSC February 2011 Available at: http://www.og.ssb.no/iresmainpagehttp://www.og.ssb.no/iresmainpage Some of the contents in IRES: SIEC – Standard International Energy Product Classification Definition of energy products Measurement units and conversion factors Definition of energy flows (production, export, import, consumption++) Data collection strategies The Energy Statistics Compilers Manual (ESCM) Ongoing work Information available at: http://www.og.ssb.no/escmmainpagehttp://www.og.ssb.no/escmmainpage

24. 24 Thank you for your attention!