Historisk arkiv

Innlegg under INTSOK konferansen

Historisk arkiv

Publisert under: Regjeringen Stoltenberg II

Utgiver: Olje- og energidepartementet

The 7th Annual Russian–Norwegian oil and gas conference, Moskva 27.-29. januar

Innlegget var basert på følgende manus:

Your Excellencies, ladies and gentlemen, dear friends!

Thank you for inviting me to this INTSOK seminar supported by StatoilHydro. 
I am delighted to meet you in Europe’s largest metropolitan area; in the capital of the Russian Federation, the biggest city in Europe and certainly one of the most interesting ones.

I wish to thank INTSOK – “the Norwegian oil and gas partners” for giving me this opportunity to address such a distinguished audience; a broad specter of companies with strong competence and long experience within the oil and gas industry.  Today’s conference is a sophisticated approach to matchmaking and an important meeting point for companies seeking exchange of experience or potential partners.

The Norwegian oil and gas industry
When talking to a Russian oil and gas audience, Norwegians has to admit that compared to you - we should be regarded as novices.  Russia had an oil industry already in 1820, in Baku, - then a part of the Russian Empire.  We Norwegians made our first discovery in 1969, so – you Russians have 150 years longer experience than us.

But - 40 years of offshore petroleum activities in the cold and harsh North Sea has forced us to catch up with you.  Today Norway is the world’s fifth largest exporter of oil and the third largest exporter of natural gas. 

Our focus over these years has been on responsible husbandry of our natural resources. This means that we have developed management and industrial traditions that emphasize value creation. At the same time we have integrated health, safety and environment into our petroleum policy. These values have contributed greatly to the building of a competitive petroleum industry in Norway.

Until ten years ago, the Norwegian oil companies, and most of the supply and service industry, concentrated their efforts on the Norwegian continental shelf. Today, Norwegian oil and gas related industries are engaged all over the world, based on the skills and competence gained in Norway.

Today’s theme at this conference “Executive Project Management” is a good example of such Norwegian competence.  Project management is decisive for complicated operations in demanding environments. We learned the hard way that “time is money and quality is all”. Project Management has therefore become one of the front competitive advantages for Norwegian oil and gas companies.

I also wish to take the opportunity to mention some other areas of relevance to offshore operations.  Norway early on made a strategic decision that gas had value, and that it was important that the companies to develop means for ensuring that gas was not flared but exported.

Gas management has become an area where Norwegian experience is competitive. I think that it is noteworthy that the Ekofisk field after so many years is still a major producing field in Norway.  According to the original plan, the field should have shut down many years ago.

Technology development in enhanced oil recovery, to a large degree carried out in Norway, has led to the life of the field being extended several times.

Our long maritime tradition means that we have a strong maritime cluster in Norway. The maritime cluster’s experience and technology has been widely valued and used in the Norwegian petroleum sector. We have today several very strong engineering clusters present in Norway and several companies world leading in the fields of subsea processing and flow assurance.

There is a continuous focus on innovation within the Norwegian petroleum sector – without innovation in Norway there would have been less value creation in our petroleum sector. The Norwegian government is convinced that both R & D and demonstration are activities where government has important roles to play, and there are government programs to support the industry’s concrete R & D projects financially.

Understanding of the needs and requirements of host governments and local communities is decisive for successful operations abroad.  We expect that our companies behave in a socially responsible manner and I believe that these values will be an advantage for Norwegian companies as they compete internationally.

Going international is no longer an additional activity; it is an integrated part of the commercial strategy for the industry. We are increasingly seeing Norwegian small and medium sized companies actively seeking to compete for market share internationally, and succeeding.

In 2007 Norwegian based supply and services companies’ international turnover amounted to some 96 billion Norwegian kroner.  Russia alone is a very important market that is singled out by INTSOK for particular care and attention.

The government’s goal is that the Norwegian petroleum sector will continue to be successful in the future, at home and abroad. Therefore the government will continue to support the internationalisation of the oil and gas industry, including the activities of INTSOK, the Norwegian oil and gas partners.

Financial turmoil
We have, the last months, witnessed dramatic changes in the world economy. The financial crisis and its economic consequences are still unfolding. The final outcome is still the future. Uncertainty has increased to a level where many have become less eager to predict the future with confidence.

The unprecedented fall in the oil price is dramatic with possible long-term consequences for the energy markets, unless the fall is short-lived.
However - I think it is too soon to conclude about the structural consequences of the financial crisis.  I believe that the underlying trend in the energy markets, is still of higher demand for energy to meet the growing economies.
Energy demand - energy efficiency
On a global basis, The IEA’s reference scenario predicts that demand for energy will increase by 45 percent by 2030 and that 80 percent of this demand will be met by fossil fuels.

Oil and gas will continue to be the dominant fuels the next decades - even under the most optimistic assumptions about development of renewable energy.
These predictions do not represent a sustainable development. It carries the most serious threat of severe changes to the climate.   According to IEA the greenhouse gases will increase by 45 % till 2030 if no new policies or measures are introduced.
The importance of energy efficiency could thus not be overrated.   We are all part of the total pattern of consumption.  The beneficial effects of introducing energy efficiency in homes, public and business buildings and in industry is often underestimated. Energy efficiency should be a key factor both in meeting the challenges of energy demand and climate change mitigation

According to the IEA the global potential for energy saving is massive. We need to encourage and introduce measures that make the industry and the households to actively make changes. It goes without saying that this is not an easy task. We politicians need to implement policies that promote this change.

CCS
We must also meet the challenge of reducing the emissions from the production and use of fossil fuels. Carbon capture and storage is one of the most promising technologies to achieve that. This technology will complement other climate change mitigation actions by providing an option for using fossil fuels, including coal, during the transition to a low-carbon economy. It offers the potential to reduce CO2 emissions by 85 to 95 percent from coal and gas fired power plants. It also offers a large potential for reduction in emissions from other industrial processes.

Carbon capture and storage is already a mitigation option available to the developed countries. Norway has stored CO2 for more than a decade. We see that more and more countries plan to use carbon capture and storage in their national mitigating strategies. The technology should, however, be a part of a comprehensive portfolio of mitigation action options available to the developing countries.

All of us work towards the renewable era. However, we have to build the bridge between the present and the renewable era. We are convinced that CCS is an essential building bloc in creating this bridge.
It is therefore in all oil and gas producers interest that CCS is developed accepted under the CDM. The Norwegian Government calls upon your countries support for this view.

Energy poverty
The delivery of affordable, reliable and sustainable power to citizens is one of the key challenges of the 21st century.  It is a fact that one-quarter of the world population have no access to electricity.

Access to energy is fundamental to improving quality of life.  It is crucial for economic development and is a key factor for the development of the third world countries. Without access to modern, commercial energy, poor countries can be trapped in a vicious circle of poverty, social instability and underdevelopment.

We need a robust energy vision that can reduce energy poverty around the world. We need strategies that address differences between urban and rural populations. We need service providers, technologies and financing schemes based on people's ability to pay.

To identify and understand energy solutions it is necessary that stakeholders come together - both on a high, transnational level and in country-specific contexts. We must discuss and commit to a common policy vision and strategy to address energy poverty.

Governments need to look for strong partners to deliver change on the ground, and based on the Norwegian petroleum experience, I am convinced that the private sector can be part of the solution.

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It is an honour for me to be here and to have the opportunity to talk to you about an industry that I myself am very proud of. I am confident that it will contribute positively to Russia’s energy sector. 

I hope that we will see a further deepening of our bilateral energy relations.  Today’s event is one proof of the closer bilateral economic ties that our countries are enjoying.

I wish you two fruitful and interesting days here in Moscow!

Thank you for your attention!