Europe / Caspian / CIS

Country profile: Norway

Location:

Northern Europe, bordering the North Sea and the North Atlantic Ocean, west of Sweden

Climate:

temperate along coast, modified by North Atlantic Current; colder interior with increased precipitation and colder summers; rainy year-round on west coast

Terrain:

glaciated; mostly high plateaus and rugged mountains broken by fertile valleys; small, scattered plains; coastline deeply indented by fjords; arctic tundra in north

Size:

323802 sq. km total (Land area: 307442 sq. km Water area: 16360 sq.km)

Population:

4,644,457 (July 2008 est.)

Languages:

Bokmal Norwegian (official), Nynorsk Norwegian (official), small Sami- and Finnish-speaking minorities; note - Sami is official in six municipalities

Government:

constitutional monarchy

Capital city:

Oslo

Legal system:

mixture of customary law, civil law system, and common law traditions; Supreme Court renders advisory opinions to legislature when asked; accepts compulsory ICJ jurisdiction with reservations

Currency:

Norwegian krone (NOK)

Licensing:

Country profile

Norway is an advanced, highly-developed economy that has greatly benefited from the utilization of its hydrocarbon resources. In 2005, the country had a gross domestic product (GDP) of $295 billion, and a per-capita GDP of $64,000, which is one of the highest in the world. The Norwegian economy grew by 2.5 percent in 2005, and is forecasted to grow by 2.2 percent in 2006. Norway’s economy is highly dependent on its offshore oil and natural gas sector, which provides the government with its largest single source of revenue and the largest contribution to GDP. In recent years, high oil prices have made for government budget and current account surpluses, and rising disposable income.

Norway's dependence upon oil and gas revenues present long-term challenges for the country, especially because many industry analysts believe that North Sea oil and gas production has already reached or passed its peak. In particular, the country faces pension liabilities and other welfare obligations. In response to these challenges, the Norwegian government created the Petroleum Fund in 1990, later renamed the Government Pension Fund in 2005. A portion of annual oil and gas revenues flow into the Fund each year, which serves the dual purpose of buffering the short-term variations in oil revenues and providing a mechanism to transfer current wealth to future generations. The Fund, which holds a combination of cash, bonds, and shares, holds only international assets and stood at some $240 billion in March 2006.

The latest nationwide election in October 2005 had important repercussions for Norway’s future energy policy, because the largest coalition members (Labour and Socialists) disagree on whether or not to pursue exploration activities in the Barents Sea. In March 2006, the government presented its management plan for the Barents Sea. The plan allows new exploration in some areas of the Barents Sea, but it also places a moratorium on other, ecologically-sensitive parts of the region until 2010. In addition, the plan allows existing exploration activities in the Barents Sea to continue. With declining production from existing areas, Norway must explore these frontier regions in order to maintain oil and natural gas production in the long-term.

Energy production and consumption

Oil

Gas

Production:

2 million bbl/day (2005 est.)

83 billion cu m (2005 est.)

Consumption:

228,400 bbl/day (2005 est.)

5 billion cu m (2005 est.)

Exports:

3 million bbl/day (2005 est.)

78 billion cu m (2005 est.)

Imports:

91,930 bbl/day (2005 est.)

Reserves:

7 billion bbl (1 January 2006 est.)

2 trillion cu m (1 January 2006 est.)

Major fields:

Norway - recent news

17 Apr 24	Norwegian Offshore Directorate publishes new deep sea data In June 2022, the Norwegian Offshore Directorate published data collected up to 2022. The Directorate is now releasing deep sea data gathered from 2022 to 2024.
17 Apr 24	Norway: The future in the Barents Sea is here now - Norwegian Offshore Directorate The Johan Castberg ship will soon be heading north. With the ship in place, the plan is to have three producing fields in the Barents Sea by the end of the year. We now have the opportunity to lay a good foundation for further development of this part of the Norwegian shelf, said Torgeir Stordal, Director General of the Norwegian Offshore Directorate, in his keynote address at the Barents Sea Conference.
17 Apr 24	Norway: Var Energi confirms new oil discovery in the Balder area in the Central North Sea Vår Energi has confirmed the discovery of oil in the Balder area in the Central North Sea. The latest Ringhorne North exploration well in PL 956 was successful with estimated recoverable resources of between 13 and 23 million barrels of oil. Operator Vår Energi considers the discovery a potential commercial candidate to be tied into nearby existing infrastructure in the Balder area.
15 Apr 24	Orrön Energy sells its 50 percent interest in the Leikanger hydropower plant in Norway for MEUR 53 Orrön Energy has entered into an agreement to sell its 50 percent interest in the Leikanger hydropower plant for an enterprise value of MNOK 613, approximately MEUR 53, to the existing partner Sognekraft Produksjon.
12 Apr 24	Var Energi announces first quarter 2024 trading update Vår Energi has provided an update on production, sales volumes, and other relevant items. Vår Energi's net production of oil, liquids and natural gas averaged 299 kboepd in the first quarter of 2024, an increase of 33% from the fourth quarter of 2023 and an increase of 40% compared to the first quarter of 2023.