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

16 Sep 26	Norway: Aker BP has made a gas discovery in the North Sea (36/4-2 and 36/4-2 A) Aker BP has made a gas discovery in the North Sea (36/4-2 and 36/4-2 A). Preliminary calculations show that the size is between 0.15 and 2.4 million standard cubic metres of recoverable oil equivalent (Sm3 of o.e.), which corresponds to 1-15 million barrels.
15 Sep 26	Norway: Soiltech awarded expanded scope on Deepsea Yantai Soiltech’s scope on Deepsea Yantai under a contract with DNO and Elemental Energies in Norway has been expanded to include Soiltech’s SmartTransfer™ technology, with effect from fourth quarter 2026.The additional scope constitutes a large contract for Soiltech and covers solid waste management services on the rig and the transfer of drill cuttings to shore by PSV.
15 Sep 26	Norway: Fulkrum awarded inspection services contract by Vår Energi This significant contract covers inspection services across Vår Energi’s project portfolio, supporting quality assurance, operational integrity, and efficient project execution. As part of this framework agreement, Fulkrum is currently supporting three subsea developments within the Gjøa area: Ophelia, Gjøa Nord, and Cerisa, providing inspection and testing of equipment and systems both offshore and on-site at the testing facilities.
08 Sep 26	Norway: Resource report 2026 in English The report shows that without significant discoveries, production on the Norwegian continental shelf (NCS) may fall steeply after 2030. Resources remain plentiful, but growth levels are too low to maintain current production levels over time.
26 Aug 26	Norway: Standing Committee on Energy and the Environment visits Aker BP for dialogue on the future of the Norwegian continental shelf On Tuesday, 25 August, the Norwegian Parliament’s Energy and the Environment committee visited Aker BP in Stavanger to discuss the future of the Norwegian continental shelf, Norway’s role as an energy supplier to Europe, and how the industry can create as much value as possible with the lowest possible emissions.