Minister of Foreign Affairs Jonas Gahr Støre

The High North - top of the world - top of the agenda

Centre for Strategic and International Studies, Washington D.C., 15 June 2006

Check against delivery

Dear friends,

Back in January our chair today John Hamre asked a number of important questions at a large conference organised by the NHO – the Confederation of Norwegian Enterprise – in Oslo, and he hit the headlines in the Norwegian press.

John asked rhetorically: Where on earth is the High North? What do we mean by this concept? Why ever should the US have an opinion, a policy or even an interest in High North issues?

Right after the conference, I invited John to my office. Here he went further and made it clear that none of the aspects of the High North he had heard about in Oslo were anywhere near the top of the political agenda in Washington.

Well, this was quite an input from a US friend and expert adviser to a government that had defined the High North as a strategic priority!

Since then we have been busy reflecting on the questions you asked in January, and today I have come here to answer them. Thank you for your invitation!

And let me add what a pleasure it is for a Norwegian Foreign Minister to visit Washington – to meet with colleagues and experience this extraordinary environment of political thinking and reflection.

Our bilateral relationship is strong and solid – and a vital platform to build on.

The short answer to John’s question is this:

The High North covers the areas of the Arctic adjacent to Norway. We are talking about a vast region with rich resources that already provides a large proportion of the fish eaten in Europe and that is about to meet a significant share of the globe’s future energy needs – in particular those of the United States.

Energy is key.

Energy is in fact the new dimension that is reintroducing the High North to the political scene.

Energy security, energy supply, energy dependency – all these issues are now regarded as key foreign policy and security interests. For consumers and providers alike.

But there are other interests as well.

The High North was previously addressed from a purely military perspective. The Cold War shaped our entire thinking about East and West, NATO and the Soviet Union.

Had this seminar taken place some 20 years ago, our focus would have been on other aspects; apart from the icy, harsh climate, we would have been concerned about scores of nuclear submarines.

All our intellectual capacities were oriented in this direction – counting submarines, counting warheads. As a Norwegian naval officer I was trained to detect Soviet submarines in the fog – both the Alpha class and the more interesting one – the Whiskey class.

Of course, we should indeed not reduce our ability to analyse the military dimension. But it is no longer completely dominating every other dimension.

Today, this vast area on the top of the globe is revealing itself as a peaceful corner of the world – an area where a number of countries, including Russia, cooperate closely, in a pragmatic manner, on Arctic research, on climate change, on the management of living resources and on a wide range of other important issues, including energy.

My mission today is to invite you, our US partners, to take more active part, to become more involved in these developments.

In one way it is to build a bridge between the extremely close partnership that Norway and the United States have enjoyed – and still enjoy – on security issues in the North – to the new dimensions that now draw our attention.

John Hamre made it clear that this is not on the Washington agenda. I cannot challenge that. For a long time, when someone back in Oslo complained that there was too little interest in Norwegian thinking in D.C., our friends at the White House and State Department reminded us that: “The problem with Norway is that there is no problem with Norway.”

I want things to remain that way. And my message today is not one of emerging problems.

On the other hand, I simply cannot imagine that the US will close its eyes to the following fact: late next year, the first tanker of liquefied natural gas – LNG – will sail from Hammerfest, Norway’s and Europe’s northernmost town – bound for Cove Point, Maryland.

Overnight, new ties will be created between our countries. Less than 20 years after the end of the Cold War, the US will start importing energy from what analysts used to define as a “frozen region” – climatically and politically.

But although the context is changing, one thing remains the same and I wish to stress this historic fact: this is a region where historically Norway and the US have been on the closest of speaking terms. For reasons of mutual interest, for reasons of security and – on the bottom line – for reasons of survival. As friends. This will continue.

That was the short answer to John’s question. The longer answer will now follow.

Dear friends,

In the years to come, the High North will be one of the most important strategic areas in the world. It offers unique opportunities and challenges.

One of my missions as Foreign Minister of the Norwegian Government is to increase international awareness about this area.

My colleague, Secretary Rice, talks about the strategy of transformational diplomacy. This is exactly what the High North is all about.

Being active in the North is a mainstay of Norwegian policy. Norway is a coastal state with large sea areas under its jurisdiction, and managing the rights and responsibilities that this entails is key – and nothing new.

We aim to do so in a predictable and transparent manner, developing excellent relations with our neighbours, partners and friends. Our ties and ongoing dialogue with the United States are an important part of this, and I am particularly pleased that our dialogue with the US on High North issues has intensified during the last year.

Shortly after the US Ambassador to Norway, Ambassador Witney, arrived to Norway, one of the first trips he made was to Kirkenes, in the extreme north east of the country. At the opening of the Barents Research Institute on 1 February he said:

“This region is of great significance to the United States. The agenda is large: oil and natural gas development, environmental protection, global energy security, fisheries, and even non-proliferation. Subjects of such global significance demand international cooperation and understanding. The United States and Norway have a rich, multi-dimensional relationship in the High North.”

I couldn’t agree more, and I couldn’t put it better myself.

I want to follow this up by sharing with you a few more reflections, on these topics:

Firstly, on geography, on new perspectives – including on Norway’s relations to Russia.

Secondly, on energy security and the Barents region as one of the globe’s new energy provinces, and

Thirdly, on the climate change in the Arctic, which will affect us all. The environmental and other challenges we are facing in the High North are transboundary – and they cross sectors. They can only be resolved through international cooperation. The climate change that we now observe around the Pole should serve as yet another call for action.

*****

Firstly, turning to basic geography and familiar history – but from a new perspective.

There is an old saying that where you stand depends on where you sit. Perspectives on geo-politics depend on the point of view we adopt for analysing the world and relations between among states. Maps influence the way we view the world. They challenge us to look at areas and opportunities from new perspectives.

From a northern angle the planet earth looks quite different.

Most weather report maps on European TV channels cut Europe off at around the 60 ^th> parallel. They include the three Nordic capitals of Oslo, Stockholm and Helsinki, but not much more of these countries.

The area we are focusing on today is much further to the north – in fact beyond the 70 ^th> parallel – a region known for its plentiful and rich resources. And as we all know, access to and the distribution of natural resources – like water, oil and gas – and fish – have always been matters of security, of national interests.

British Prime Minister Tony Blair raised the following question at Georgetown University three weeks ago: “Which is the issue that has rocketed up the agenda of most political leaders in a way barely foreseen even three years back?”

He answered his own question: “Energy policy.”

At a hearing in the US Senate last week, Senator Richard Lugar said that “important foreign policy goals (…) are being undermined by international energy imbalances”. And he went further to suggest that this trend has weakened US foreign policy leverage.

Likewise, the Russian leadership consistently makes it clear that energy is now an integral part of the country’s foreign policy. And we could go on to China, India and the rest of the world, not to forget many of the developing countries that right now are experiencing the heavy burden of increasing oil prices.

Developing our relations with Russia is a cornerstone of our High North Policy. Our management of this bilateral relationship in a proper and stable manner has been a real contribution to peace and stability in Northern Europe. We see this as a task also in the future.

Norway and Russia have lived in peace for one thousand years. Now that the Cold War has ended, we are rediscovering patterns of trade and exchange that date back many centuries.

Today, Norway’s neighbourly relations with Russia today are largely reminiscent of the situation before the 1917 October Revolution, with normal contact across the border. Norwegians travelled, settled, traded and married on the Russian side, and vice versa. The economic and cultural exchange was extensive. Norwegian businessmen had to learn some Russian.

Our common border has been reopened. The figures tell their own stories. In 1990, around 3000 people crossed the border in the North. Last year the number climbed above 100 000. Previous ties have been re-established and re-strengthened.

There are active contacts on grassroots level. In the border town of Kirkenes you hear Russian spoken on the street and the signs, advertisements and restaurant menus are written in both Norwegian and Russian. The visionary project of the Euro Barents Cooperation – launched in 1993 – integrates Russia into a close regional scheme of cooperation with its Nordic neighbours.

So our policies are being adapted to this new situation – to these new opportunities – while retaining a sharp eye for the security dimension, and preserving and securing our critical transatlantic ties.

Again, I find Secretary Rice’s concept of transformational diplomacy to the point.

The relations of both Norway and the US with Russia have changed dramatically – to the better. But the security dimension did not vanish with the Cold War.

The High North, including the Barents Sea, remains an area of prime strategic importance. The Kola Peninsula is still the home base of the Northern Fleet, which carries a major part of Russia’s nuclear deterrent.

Our task is to keep all this in mind while continuing to move forward in developing a new kind of relationship built on joint opportunities, in improving the management of living resources and not least in pursuing what President Putin has called a strategic energy partnership between Norway and Russia.

Norway and other countries in Europe – indeed all the countries of the transatlantic community – need Russia just as much as Russia needs us. We must not isolate Russia or allow Russia to go its own way.

This does not mean, however, that we will close our eyes to worrying developments in Russia. Such as corruption, and increased political control over strategic economic sectors, the media, NGOs and civil society. These issues are part of our frank and open dialogue – a testament to the solid relations we have built.

Dear friends,

One of my main points today is this: the traditional security concept has changed, which brings me to my second topic – energy security.

The Barents Sea could become a new European energy region. The High North could become a key area for addressing global concerns about energy security. The US Geological Survey (USGS) has estimated that almost 25 per cent of the globe’s “yet-to-find” resources [undiscovered resources] are in the Arctic. A conservative estimate indicates that so far we have produced only one third of the petroleum resources in the Norwegian continental shelf. One third of the “yet-to-find” resources [undiscovered resources] is assumed to be in the Norwegian part of the Barents Sea.

Today there is a sense of insecurity about energy supply in the world – for good reason.

Worldwide consumption is increasing while production is failing to keep up with demand. Political instability in a number of petroleum-producing regions has created additional uncertainty. Moreover, there is almost no spare capacity in oil producing countries today.

Norway is already a major producer of oil and natural gas.

Some figures to illustrate this:

In 2005, Norway's production of liquids amounted to 2.6 million barrels per day – making Norway the world’s eighth largest oil producer – and the world’s third largest oil exporter.

In 2004, Norway was the third largest natural gas exporter and the seventh largest natural gas producer.

Our natural gas exports meet approximately 15 per cent of European gas consumption, and the figure is rising. Norway provides Germany with 20 per cent of its oil and 25 per cent of its natural gas requirements. For France the figure is close to 30 per cent. A new dedicated pipeline to the UK means that Norway will be able to provide about 30 per cent of UK gas consumption.

As already mentioned, when the Snøhvit field north of Hammerfest commences operation in 2007, Norway will supply an annual volume of 85 billion cubic feet of LNG to the Cove Point terminal, Maryland.

Today we are producing to the maximum of our capacity. We are investing in new R&D capacity with a view to extracting more from existing fields and we are exploring new parts of our waters – in the North Sea and further to the north.

Our natural gas export capacity is growing strongly and we are working hard to maintain our level of oil production.

In developing the Snøhvit LNG field – our first field in the High North to come into operation – new technological frontiers are being crossed every day.

The project is being developed with sub sea production solutions only. There will be no platforms or ships to be seen on the surface. This diminishes the risk of environmental damage in an area with rough and unpredictable weather, which is extremely rich in fish.

Until now, doing business and exporting goods from these rough waters has involved fish. For centuries, people in the High North have lived from the fisheries. And we want this to continue.

It is our responsibility to continue to manage the fish stocks in a wise and predictable manner. The collapse of the cod stocks off Canada’s east coast is a severe reminder of the importance of international cooperation in the management of marine living resources. When these fisheries were finally closed in 1993, the stock had dwindled to a small percentage of the level recorded in the early 1960s and it has since shown virtually no signs of recovery. Lessons must be learnt from this.

In the High North, the guiding principle is to balance the interests of the different sectors. Commercial interests – be they fisheries, aquaculture, shipping or the petroleum industry – must be managed in a sustainable manner.

A key instrument in this regard, is the Norwegian Government’s recently adopted Integrated Management Plan. The plan includes standards for petroleum exploration, transport and fisheries.

My vision is for similar high standards, developed in cooperation with Russia, to apply for the entire Barents Sea. We are working on this, encouraged by positive reactions from the Russians to our initiative.

This will be particularly important when the large Stockman field in the Russian part of the Barents Sea is to be developed. The Shtockman field is assumed to contain 113 trillion cubic feet of natural gas, or more than 60 per cent of the total proved US natural gas reserves. At today’s import level, the Shtokman field will be able to provide the US with gas for 30 years.

We know that our petroleum companies and yours have valuable knowledge and technology to contribute. Applying the highest standards not only protects the environment, it is also sound business logic and healthy for human resources.

As you can see from the maps I’ve shown, one third of mainland Norway lies north of the Arctic Circle. The Norwegian mainland reaches far into the Arctic Ocean. In fact Norwegian jurisdiction in the Northeast Atlantic covers an area six times the size of mainland Norway.

Authority and rights entail responsibilities. Norway is responsible for ensuring that the area remains stable, secure and is soundly managed – both now and in the future – for traditional activities such as fisheries and for new industries such as energy.

Thirdly and finally – let me touch on climate change – an important issue I addressed at a symposium this morning.

Here, I do not question John Hamre. The issue is not at the top of the agenda in Washington. This I regret – simply because we will not be able to deal with the challenge of climate change unless the United States with all its talent and technology engages.

The changes in the Arctic climate are affecting the rest of the world, and this is happening now. The Artic ice is melting. We are seeing it with our own eyes. The Artic Climate Impact Assessment shows what the figures and tables mean in practice.

Let’s be clear about it: the time for asking the “if” question has gone. We are now facing with the “how-to-respond” questions. We know that climate change will affect industries, infrastructure, transport and other vital areas of human life.

The Arctic is critical because it tells us what is about to happen in the rest of the world. Some of these changes may already be happening, as the violent hurricanes further south may indicate.

Today, we know that the effects of climate change are first seen in the Arctic, and that these changes will affect the whole of the world. When ice melts, darker land is laid bare and heat absorption increases. So does global warming.

Thus, developments in the Arctic are a clear “early warning” signal to the whole world – that should spur dedicated efforts by decision shapers and decision makers from all walks of life – at national, regional and global levels.

Issues relating to emissions, climate change and energy supply show how the traditional security concept has changed, and how we are facing new security challenges together. The modern world is after all one of interdependence.

There are three keywords that summarise Norway’s High North policy: presence, activity, and knowledge:

Presence in the new chapters that will be written about the exploitation of both renewable and non-renewable natural resources in the High North. Presence as a coastal state that takes its responsibilities seriously, including carrying out inspection and control activities in an appropriate way in the zones under our jurisdiction.

A high level of activity and ambition in the fields of technology, research and the environment. And, therefore

Investing in knowledge and sharing knowledge – we can afford no lesser ambition than being at the forefront of High North and Arctic knowledge.

Norway is reaching out to neighbours, friends and partners to realise the opportunities and face the challenges in the High North.

Norway and the US are part of the same circumpolar region. Nowhere is the distance between our countries shorter than in the north. Nowhere should we see closer cooperation on a larger number of areas – between researchers, companies, think-tanks, partners, NGOs and government bodies.

For all these reasons, I hope I can depend on your interest and partnership. The High North is a frontier for meeting our energy needs, a frontier for addressing climatic change and impacts on the environment and a frontier for creative interaction between the nations and peoples of the North.

And finally – let me thank John Hamre – and NHO – for offering such a stimulating setting for continuing our discussions from January.

****

See a powerpoint presentation of the speech