Norway’s long-term energy policy

Siri Meling, MP (Conservative Party) First Vice Chair of the Standing Committee on Energy

and the Environment in the Norwegian Parliament (Stortinget)

Global Primary Energy Demand 1970 -2030

Oil

Coal

Gas

Biomass Nuclear

Other renewables

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1970 1980 1990 2000 2010 2020 2030

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•  Renewable will play a more important role, but traditional fossil fuels (coal, oil and gas) will still be the most important energy sources. •  IEA: An increase in demand for oil with 3 per cent and an increase in demand for natural gas with 12 per cent in 2030 compared with 2005 levels are compatible with stabilising climate gas emissions.

Europe’s energy dependency Import share in percentage of domestic consumption (2006)

Source: Eurostat

Norway – securing energy supply to Europe •  Few countries are so richly endowed with energy resources

–  Oil –  Gas –  Hydro power –  Wind onshore –  Wind offshore –  Biomass –  Tidal energy

•  Norway is: –  The world’s 7. largest oil producer. –  The world’s 5. largest oil exporter –  The world’s 3. largest gas exporter –  The world’s 6. largest hydro energy producer, largest per capita

•  Norway important supplier of energy in Europe. –  Market share of 20 to 40 pst. in important consumer countries as UK,

France and Germany.

Norway:

A part of Europe’s energy system

Historical and near future petroleum production

Source: Norwegian Petroleum Directorate (NPD)

Norway’s international responsibility as major energy producer

•  Contribute to meet global energy demand – both for oil and gas and renewable energy. Thereby contribute to continued growth and development in newly industrialised nations and the developing world.

•  Contribute to Europe’s policy for meeting climate challenges by increased export of natural gas and renewable energy.

•  Contribute in the security of supply of energy to our European neighbours – and thereby make Europe less vulnerable and less dependent on politically unstable areas.

Norway’s major interests

•  The role of major energy supplier gives Norway major interests in future politics on the European energy market.

•  The role of environmentally responsible nation where Norway as a major energy producer and consumer should be a leader in climate friendly production and consumption of energy.

CO2 efficient Norwegian petroleum production •  Norwegian oil and gas production is the most CO2-effecive in

the world. •  Natural gas is the least CO2-intensive fossil fuels.

–  If gas replace coal greenhouse gas emissions will decrease by approx. 50 per cent with the same amount of energy produced.

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Infrastructure, production and transport Combustion of energy source

CO2-emissions per bbl. o.e. produced Life-cycle CO2-emissions for electricity production in Europe

Petroleum activities in the Arctic is important

•  To meet global energy demand •  To have new challenges for the

European petroleum industry as oil and gas fields further south is beginning to mature.

•  To move the technology frontier further, using the know-how of the European petroleum industry.

•  To have a more diversified industry structure in northern Norway, give new employment possibilities and create renewed optimism.

•  Conservatives are in favour of opening the controversial areas outside Lofoten and Vesterålen for oil and gas production. –  But the present red-green

coalition government will not open until after 2013.

… but within strict demands on health, environment and safety •  The strongest environmental standards in the world •  Zero emission to sea •  The petroleum industry has the necessary experience

and knowledge to operate in Arctic waters. •  More than 30 years of experience in the North Sea –

without any serious environmental accidents. Shown that petroleum, fishing, shipping, tourism and environment can coexist.

•  Det norske Veritas has in a study of existing research in this field concluded that there are shown no effects on fishing stocks from oil and gas production.

Energy and environment: Integrated management plan for the Arctic area

•  Guidelines for coexistence between activities and environment in the following areas:

–  Norwegian sector of Barents sea

–  Fish protection zone around Svalbard

–  Area outside Lofoten and Vesterålen

•  Integrated management plan up for evaluation in 2010