Strong petroleum industry produces environmental benefits

On 27 May, the first of a total of six KonKraft reports was delivered to the Minister for Oil and Energy, Åslaug Haga, during the Top Management Forum. The report “Energy Nation Norway – development and renewal in a new environmental and geopolitical era” looks at Norway as an energy nation from a national and international perspective and will form the basis for political and industrial decisions linked to the petroleum industry. The report is part of the government’s work on the White Paper on petroleum-related activities, which is expected to be completed during 2008.

(080602 Konkraft, Summary of Energy Nation Norway report)

“The report is clear that the petroleum industry is important for ensuring that Norway is also a major participant in the field of clean and renewable energy, says Per Terje Vold, director of the Norwegian Oil Industry Association (OLF). “Many countries in the EU are dependent on Norwegian gas, and this need can only increase if they are to achieve their goals with regard to climate change. It is therefore important that Norway, as one of the world’s cleanest petroleum manufacturers, continues to play an important part in the European energy market. In order to secure Norway’s position, the industry requires predictability as well as new and interesting areas for exploration.”

Report’s principal conclusions:

• A strong petroleum industry is the best foundation for the development of a many-sided energy cluster with greater emphasis on clean and renewable energy up to the year 2030.
• Development of the energy cluster will depend on access to new petroleum resources, exploiting the potential of Norwegian hydro-electric power and goal-focused wind power initiatives.
• Norway has greater opportunities and competitive advantages than many other countries as an exporter of CO2-effective energy and expertise.
• The world’s economic growth and wealth development require energy. In the next few decades oil and gas will continue to supply a large part of the world’s energy needs.
• The petroleum industry has contributed significantly to Norway’s economic development, the side-effects of which have benefited the country’s entire population. 

Report background and summary 
For almost 40 years, Norway has developed a world class energy cluster based on petroleum activities. The industry has contributed to unique national economic growth and development of wealth. Norway’s gross national product per inhabitant is currently 75 per cent higher than that of Sweden, whereas in comparison, in 1970 it was only 75 per cent of Sweden’s. This has been achieved by means of a successful transition from traditional seafaring and industrial activities to modern, high-technology petroleum operations. Norway now faces a new transition: from that of petroleum nation to energy nation.

The report proposes adopting the following vision for Energy Nation Norway up to 2030:
•  Maintaining strong, balanced economic growth
•  Becoming a significant exporter of CO2-effective energy and expertise
•  Developing an energy and environmental technology cluster of world class standard

The report outlines the following strategy for realising this vision:
•  Systematic development of the Norwegian continental shelf
•  Systematic investment in renewable energy in areas where Norway has a competitive advantage over other countries
•  Systematic investment in development of knowledge and expertise 

Media contact:
Per Terje Vold, managing director, cell phone +47 916 17 726             
Kristin Bremer Nebben, director, communications, cell phone +47 957 24 363

About KonKraft
KonKraft is a collaboration forum for the OLF, Federation of Norwegian Industries, Norwegian Association of Ship-owners and Norwegian Trade Union Federation (LO).

Further information regarding KonKraft and its mandate will be found in Stortingsmelding (Parliamentary Report) no. 38 (2001-2002) (pp. 87-88):

“The fall in oil prices in 1998/99 was the trigger for deep structural changes in the oil and gas industries both nationally and internationally. This, combined with a gradual maturing of the Norwegian continental shelf, has meant that the Norwegian petroleum industry has been confronted with new challenges. The Ministry of Oil and Energy, in dialogue with Norwegian-based oil and gas industry, has worked hard to find ways of dealing with these challenges, with the aim of increasing the competitiveness of both the Norwegian continental shelf and the industry. This process is known as KonKraft. KonKraft is a continuation in part of Norsok, but its reach extends much further...  The participants in KonKraft include representatives from all sectors of the petroleum industry. An important part of KonKraft’s work is the creation of a long-term vision for the industry which reflects the long-term development perspective facing the industry and will identify and set in motion the measures needed to bring this about.”

The full Parliamentary Report can be downloaded here (in Norwegian): http://www.regjeringen.no/Rpub/STM/20012002/038/PDFA/STM200120020038000DDDPDFA.pdf

The KonKraft reports were commissioned by the previous Oil and Energy Minister, Odd Roger Enoksen. Work on the reports was carried out by parties involved in the petroleum industry.

List of projects:
•        Energy Nation Norway
•        Production development on the Norwegian continental shelf
•        Internationalisation
•        The petroleum industry and environmental issues
•        The oil and gas industry in the far north
•        Local and regional side-effects of the petroleum industry

The Ministry of Oil and Energy is also conducting a separate project under the title “Structural changes in the petroleum industry”.