Ministry of Petroleum and Energy www.mpe.dep.no

”Arctic and Cold RegionsProspects and Challenges”

Minister of Petroleum and EnergyThorhild Widvey

US – Norway Oil and Gas Industry Summit 2 March 2005Houstonian Hotel, Houston

Ministry of Petroleum and Energy www.mpe.dep.no

0

10

20

30

40

50

60

04.01.2000 04.01.2002 04.01.2004 04.01.2006 04.01.2008 04.01.2010

$/barrel

Oil prices: Historical and future-prices

2005

Ministry of Petroleum and Energy www.mpe.dep.no

The Largest Industry in Norway (2003)

Source: Statistics Norway

45 %24 %

The petroleum sector’s direct share of total employment was 1,2 percent in 2003

19 %

The petroleum sector’s share of GDP

19 %

The petroleum sector’s share of GDP

25 %

The petroleum sector’s share ofState revenues

The petroleum sector’s share of total investment

The petroleum sector’s share of total exports

Ministry of Petroleum and Energy www.mpe.dep.no

Production and Net Export of Liquids* 2004

2,352,6

3,083,193,493,833,96

7,629,029,2

0 5 10

UAE

Venezuela

Canada

Norway

China

Mexico

Iran

USA

Saudi Arabia

Russia

mill b/d

1,511,762,012,012,042,12,47

2,936,47

7,04

0 2 4 6 8

Iraq

Mexico

Kuwait

UAE

Nigeria

Venezuela

Iran

Norway

Russia

Saudi Arabia

mill b/d

Production Net export

* includes both crude oil and NGLSource: Petroleum Economics Ltd

Ministry of Petroleum and Energy www.mpe.dep.no

High activity at the NCS

Oseberg 2015Troll 300

SnøhvitOrmen lange

SatellittutbyggingerStatfjord senfase

Tampen 2020

Valhall redevelopment

Ministry of Petroleum and Energy www.mpe.dep.no

Norwegian continental shelfLarge resources left to be found and produced

Ministry of Petroleum and Energy www.mpe.dep.no

The Arctic challenge

USGS: 25% of the world’sundiscovered resources to be

found in the Arctic

Source: USGS, Statoil

Arktis

Rest of the

world

N.Africa, Caspian,

M.East

Ministry of Petroleum and Energy www.mpe.dep.no

The R&D Challenge

• Subsea flow assurance and processing for long tie-backs

• Environmental considerations

• Drilling and intervention and offshore and onshore facilities in the arctic, and

• Transport solutions for oil, gas/LNG from arctic frontiers to the markets

Ministry of Petroleum and Energy www.mpe.dep.no

Snøhvit – a New Concept for LNG Production • Sub-sea production

• Multiphase transport > 140 km

• LNG process and shipping technology

030326-LL 16

16

Source:

Statoil

Ministry of Petroleum and Energy www.mpe.dep.no

Ormen Lange Field Development

MinistryofPetroleum and Energy

TheOrmen Lange Offshore ProductionFacilityTheOrmen Lange Offshore ProductionFacility

Source:

Hydro

• Complex seabed topography

• New tool for design and simulation of pipe laying operations

• A globally unique innovation

Ministry of Petroleum and Energy www.mpe.dep.no

OG21 National Technology Strategy

Vision

• World class competence• A leading global industry• The most innovative

offshore province in the world

5 Focus Areas

• Deep Water • Environment• Increased Recovery• Small Fields• Gas Value Chain