Energy in Norway

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Since the discovery of North Sea oil in Norwegian waters during the late 1960s, exports of oil and gas have become very important elements of the Economy of Norway. With North Sea oil production having peaked, disagreements over exploration for oil in the Barents Sea, the prospect of exploration in the Arctic, as well as growing international concern over global warming, energy in Norway is currently receiving close attention.

1 Fossil fuels
- 1.1 North Sea oil
- 1.2 Barents Sea oil
2 Electricity generation
3 Carbon emissions
- 3.1 Carbon capture and storage
4 See also
5 External links
6 References

[edit] Fossil fuels

Norway is the third largest oil exporter on Earth (8th largest producer), producing around 3 million barrels of oil/day, and the world's sixth largest producer of natural gas, having significant gas reserves in the North Sea.^[1]^[2] Norway also possesses some of the world's largest potentially exploitable coal reserves (located under the Norwegian continental shelf) on earth.^[3]

[edit] North Sea oil

Source: Norwegian Central Bureau of Statistics

In May of 1963, Norway asserted sovereign rights over natural resources in its sector of the North Sea. Exploration started on July 19, 1966, when Ocean Traveller drilled its first hole. Initial exploration was fruitless, until Ocean Viking found oil on August 21, 1969. By the end of 1969, it was clear that there were large oil and gas reserves in the North Sea. The first oil field was Ekofisk, produced 427,442 barrels of crude in 1980. Since then, large natural gas reserves have also been discovered.

Against the backdrop of the Norwegian referendum to not join the European Union, the Norwegian Ministry of Industry, headed by Ola Skjåk Bræk moved quickly to establish a national energy policy. Norway decided to stay out of OPEC, keep its own energy prices in line with world markets, and spend the revenue - known as the "currency gift" – in the Petroleum Fund of Norway. The Norwegian government established its own oil company, Statoil, and awarded drilling and production rights to Norsk Hydro and the newly formed Saga Petroleum.

The North Sea turned out to present many technological challenges for production and exploration, and Norwegian companies invested in building capabilities to meet these challenges. A number of engineering and construction companies emerged from the remnants of the largely lost shipbuilding industry, creating centers of competence in Stavanger and the western suburbs of Oslo. Stavanger also became the land-based staging area for the offshore drilling industry.

[edit] Barents Sea oil

It is thought that the Barents Sea, off the coast of Norway and Russia, may hold one third of the world’s remaining undiscovered oil and gas [1]. A 2001 moratorium on exploration in the Norwegian sector, imposed due to environmental concerns, was ended in 2005 following a change in government [2]. A terminal and liquefied natural gas plant is now being constructed at Snohvit and, as the Arctic ice cap shrinks due to global warming, it is thought that Snohvit may also act as a future staging post for oil exploration in the Arctic Ocean ^[4]

[edit] Electricity generation

Main article: Power supply in Norway

Electricity generation in Norway is almost entirely from hydroelectric power plants. Of the total production in 2004 of 110 TWh, 109 TWh was from hydroelectric plants, 900 GWh was from thermal power, and 260 GWh was wind generated. In 2004 the total consumption was 120 TWh.[3]

Norway was the first country to generate electricity commercially using sea-bed tidal power. An underwater turbine park in the Kvalsund, south of Hammerfest, started generation November 13, 2003 [4] [5].

[edit] Carbon emissions

Despite producing the majority of its electricity from hydroelectric plants, Norway is ranked 7 in the list of countries by ratio of GDP to carbon dioxide emissions, and 34 in the 2003 list of countries by carbon dioxide emissions per capita. Norway is a signatory to the Kyoto Protocol, under which it agreed to reduce its carbon emissions to no more than 1% above 1990 levels by 2012.

On April 19, 2007, Prime Minister Jens Stoltenberg announced to the Labour Party annual congress that Norway's greenhouse gas emissions would be cut by 10 percent more than its Kyoto commitment by 2012, and that the government had agreed to achieve emission cuts of 30% by 2020. He also proposed that Norway should become carbon neutral by 2050, and called upon other rich countries to do likewise [6]. This carbon neutrality would be achieved partly by carbon offsetting, a proposal criticised by Greenpeace, who also called on Norway to take responsibility for the 500m tonnes of emissions caused by its exports of oil and gas [7]. World Wildlife Fund Norway also believes that the purchase of carbon offsets is unacceptable, saying 'it is a political stillbirth to believe that China will quietly accept that Norway will buy climate quotas abroad' [8]. The Norwegian environmental activist Bellona Foundation believes that the prime minister was forced to act due to pressure from anti-European Union members of the coalition government, and called the announcement 'visions without content' [9].

[edit] Carbon capture and storage

Norway was the first country to operate an industrial-scale carbon capture and storage storage project at the Sleipner oilfield, dating from 1996. and operated by Statoil. Carbon dioxide is stripped from natural gas with amine solvents is deposited in a saline formation. The carbon dioxide is a waste product of the field's natural gas production and the gas contains more (9% CO₂) than is allowed into the natural gas distribution network. Storing it underground avoids this problem and saves Statoil hundreds of millions of euro in carbon taxes. Sleipner stores about one million tonnes CO₂ a year [10].