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On April 19, 2007, Prime Minister [[Jens Stoltenberg]] announced to the [[Norwegian Labour Party|Labour Party]] annual congress that Norway's [[greenhouse gas emissions]] would be cut by 10 percent more than its Kyoto commitment by 2012, and that the government had agreed to achieve emission cuts of 30% by 2020. He also proposed that Norway should become [[carbon neutral]] by 2050, and called upon other rich countries to do likewise.<ref>{{cite web |url=http://www.regjeringen.no/en/dep/smk/Whats-new/Speeches-and-articles/statsministeren/statsminister_jens_stoltenberg/Speech-at-Trafalgar-Square-London/Speech-to-the-congress-of-the-Labour-Par.html?id=463749 |title=Speech to the congress of the Labour Party |publisher=Office of the Prime Minister of Norway|date=2007-04-19 |access-date=2010-06-20 }}</ref> This [[carbon neutrality]] would be achieved partly by [[carbon offset]]ting, a proposal criticised by [[Greenpeace]], who also called on Norway to take responsibility for the 500&nbsp;m tonnes of emissions caused by its exports of oil and gas.<ref>{{cite web |url=https://abcnews.go.com/Technology/story?id=3057439&page=2 |title=ABC News - ABC News |website=[[ABC News]] |access-date=2007-04-27 |archive-url=https://web.archive.org/web/20110629123047/https://abcnews.go.com/Technology/story?id=3057439&page=2 |archive-date=2011-06-29 |url-status=dead }}</ref> [[World Wildlife Fund]] Norway also believes that the purchase of carbon offsets is unacceptable, saying "it is a political stillbirth to believe that [[China]] will quietly accept that Norway will buy climate quotas abroad".<ref name="norwaypost.no">{{cite web |url=http://www.norwaypost.no/cgi-bin/norwaypost/imaker?id=71002 |title= The Norway Post : Labour Party aims for 30 % cuts in greenhouse gases|website=www.norwaypost.no |archive-url=https://web.archive.org/web/20070929092923/http://www.norwaypost.no/cgi-bin/norwaypost/imaker?id=71002 |archive-date=September 29, 2007}}</ref> The Norwegian environmental activist [[Bellona Foundation]] believes that the prime minister was forced to act due to pressure from anti-[[European Union]] members of the [[coalition]] government, and called the announcement "visions without content".<ref name="norwaypost.no" />
On April 19, 2007, Prime Minister [[Jens Stoltenberg]] announced to the [[Norwegian Labour Party|Labour Party]] annual congress that Norway's [[greenhouse gas emissions]] would be cut by 10 percent more than its Kyoto commitment by 2012, and that the government had agreed to achieve emission cuts of 30% by 2020. He also proposed that Norway should become [[carbon neutral]] by 2050, and called upon other rich countries to do likewise.<ref>{{cite web |url=http://www.regjeringen.no/en/dep/smk/Whats-new/Speeches-and-articles/statsministeren/statsminister_jens_stoltenberg/Speech-at-Trafalgar-Square-London/Speech-to-the-congress-of-the-Labour-Par.html?id=463749 |title=Speech to the congress of the Labour Party |publisher=Office of the Prime Minister of Norway|date=2007-04-19 |access-date=2010-06-20 }}</ref> This [[carbon neutrality]] would be achieved partly by [[carbon offset]]ting, a proposal criticised by [[Greenpeace]], who also called on Norway to take responsibility for the 500&nbsp;m tonnes of emissions caused by its exports of oil and gas.<ref>{{cite web |url=https://abcnews.go.com/Technology/story?id=3057439&page=2 |title=ABC News - ABC News |website=[[ABC News]] |access-date=2007-04-27 |archive-url=https://web.archive.org/web/20110629123047/https://abcnews.go.com/Technology/story?id=3057439&page=2 |archive-date=2011-06-29 |url-status=dead }}</ref> [[World Wildlife Fund]] Norway also believes that the purchase of carbon offsets is unacceptable, saying "it is a political stillbirth to believe that [[China]] will quietly accept that Norway will buy climate quotas abroad".<ref name="norwaypost.no">{{cite web |url=http://www.norwaypost.no/cgi-bin/norwaypost/imaker?id=71002 |title= The Norway Post : Labour Party aims for 30 % cuts in greenhouse gases|website=www.norwaypost.no |archive-url=https://web.archive.org/web/20070929092923/http://www.norwaypost.no/cgi-bin/norwaypost/imaker?id=71002 |archive-date=September 29, 2007}}</ref> The Norwegian environmental activist [[Bellona Foundation]] believes that the prime minister was forced to act due to pressure from anti-[[European Union]] members of the [[coalition]] government, and called the announcement "visions without content".<ref name="norwaypost.no" />


In January 2008 the Norwegian government went a step further and declared a goal of being carbon neutral by 2030. But the government has not been specific about any plans to reduce emissions at home; the plan is based on buying carbon offsets from other countries.<ref>{{cite news |url=https://www.nytimes.com/2008/03/22/world/europe/22norway.html?_r=1&pagewanted=print |title=Lofty Pledge to Cut Emissions Comes With Caveat in Norway |newspaper= New York Times |access-date=2010-06-20 |date=2008-03-22 |first=Elisabeth |last=Rosenthal }}</ref> Globally, Norway set a clear agenda in terms of climate leadership and mitigating negative consequences stemming from climate change. In terms of climate goals, Norway, along with The Netherlands, has one of the most strict timelines to eliminate fossil fuels and reduction carbon emissions.<ref name="usnews.com">https://www.usnews.com/news/best-countries/most-sustainable-countries {{Bare URL inline|date=June 2022}}</ref> However, The Federation of Norwegian Industries notes in a 2021 report that Norway is far from realising its goals concerning climate action and reducing emissions from carbon for both 2030 and 2050 <ref>https://www.norskindustri.no/siteassets/dokumenter/rapporter-og-brosjyrer/energy-transition-norway-2021.pdf {{Bare URL PDF|date=May 2022}}</ref>
In January 2008 the Norwegian government went a step further and declared a goal of being carbon neutral by 2030. But the government has not been specific about any plans to reduce emissions at home; the plan is based on buying carbon offsets from other countries.<ref>{{cite news |url=https://www.nytimes.com/2008/03/22/world/europe/22norway.html?_r=1&pagewanted=print |title=Lofty Pledge to Cut Emissions Comes With Caveat in Norway |newspaper= New York Times |access-date=2010-06-20 |date=2008-03-22 |first=Elisabeth |last=Rosenthal }}</ref> Globally, Norway set a clear agenda in terms of climate leadership and mitigating negative consequences stemming from climate change. In terms of climate goals, Norway, along with The Netherlands, has one of the most strict timelines to eliminate fossil fuels and reduction carbon emissions.<ref name="usnews.com">{{cite news |title=Best Countries for Green Living |url=https://www.usnews.com/news/best-countries/most-sustainable-countries |work=U.S. News |publisher=U.S. News & World Report}}</ref> However, The Federation of Norwegian Industries notes in a 2021 report that Norway is far from realising its goals concerning climate action and reducing emissions from carbon for both 2030 and 2050 <ref>{{cite report |date=2021 |title= Energy Transition Norway 2021 |url=https://www.norskindustri.no/siteassets/dokumenter/rapporter-og-brosjyrer/energy-transition-norway-2021.pdf |publisher=DNV}}</ref>


=== Carbon capture and storage ===
=== Carbon capture and storage ===

Revision as of 23:31, 29 September 2022

An Equinor oil platform in the North Sea
Development of carbon dioxide emissions

Norway is a large energy producer, and one of the world's largest exporters of oil. Most of the electricity in the country is produced by hydroelectricity. Norway is one of the leading countries in the electrification of its transport sector, with the largest fleet of electric vehicles per capita in the world (see plug-in electric vehicles in Norway and electric car use by country).

Since the discovery of North Sea oil in Norwegian waters during the late 1960s, exports of oil and gas have become very important elements of the economy of Norway. With North Sea oil production having peaked, disagreements over exploration for oil in the Barents Sea, the prospect of exploration in the Arctic, as well as growing international concern over global warming, energy in Norway is currently receiving close attention.

Overview

Energy in Norway [1]
Population
(million) 		Primary energy
(TWh) 		Production
(TWh) 		Export
(TWh) 		Electricity
(TWh) 		CO2emission
(Mt)
2004 4.59 322 2,775 2,452 113 36.3
2007 4.71 312 2,488 2,172 118 36.9
2008 4.77 345 2,555 2,195 119 37.6
2009 4.83 328 2,485 2,157 114 37.3
2010 4.89 377 2,390 2,004 123 39.2
2012 4.95 327 2,272 1,929 115 38.1
2012R 5.02 339 2,313 1,963 118.7 36.2
2013 5.08 380 2,229 1,839 118.5 35.3
Mtoe = 11,63 TWh Prim. energy includes energy losses
2012R = CO2 calculation criteria changed, numbers updated

Fossil fuels

Countries by natural gas proven reserves, 2014
A map of world oil reserves according to U.S. EIA, 2017

In 2011, Norway was the eighth largest crude oil exporter in the world (at 78 Mt), and the 9th largest exporter of refined oil (at 86 Mt). It was also the world's third largest natural gas exporter (at 99 bcm), having significant gas reserves in the North Sea.[2][3] Norway also possesses some of the world's largest potentially exploitable coal reserves (located under the Norwegian continental shelf) on earth.[4] More recently (2017), the Norwegian government has ranked 3rd worldwide as the largest exporter of natural gas, just behind Russia and Qatar.[citation needed]

Norway's abundant energy resources represent a significant source of national revenue. Crude oil and natural gas accounted for 40% of the country's total export value in 2015.[5] As a share of GDP, the export of oil and natural gas is approximately 17%. As a means to ensure security and mitigate against the "Dutch disease" characterized by fluctuations in the price of oil, the Norwegian government funnels a portion of this export revenue into a pension fund, the Government Pension Fund Global (GPFG).[6] The Norwegian government receives these funds from their market shares within oil industries, such as their two-thirds share of Equinor, and allocates it through their government-controlled domestic economy.[6] This combination allows the government to distribute the natural resource wealth into welfare investments for the mainland. Tying this fiscal policy to the oil market for equity concerns creates a cost-benefit economic solution towards a public access good problem in which a select few are able to reap the direct benefits of a public good. Domestically, Norway has addressed the complications that occur with oil industry markets in protecting the mainland economy and government intervention in distributing its revenue to combat balance-of-payment shocks and to address energy security.[6][7]

The externalities engendered from Norway's activities on the environment, pose another concern apart from its domestic economic implications. Most of Norwegian gas is exported to European countries. As of 2020, about 20% of natural gas consumed in Europe comes from Norway, and Norwegian oil supplies 2% of the global consumption of oil.[5] Considering that three million barrels of oil adds 1.3 Mt of CO2 per day to the atmosphere as it is consumed, 474 Mt/year, the global CO2 impact of Norway's natural resource supply is significant.[8] Despite that, Norway exports eight times the amount of energy consumed domestically, most of Norway's carbon emissions are from its oil and gas industry (30%) and road traffic (23%).[6][7][9] To address the problem of CO2 emissions, the Norwegian government has adopted different measures, including signing multilateral and bilateral treaties to cut its emissions in lieu of rising global environmental concerns.[9][7]

According to a report from Norsk Petroleum, oil and petroleum is Norway's most crucial commodity export.[10] In 2020, 40% of Norway's exports stemmed from the petroleum sector.[10] This had an export value of 333 billion NOK.[10] 2% of the world's oil consumption is produced by Norway making it the 15th largest oil producer in the world in 2019.[10] Fossil fuels act as a major economic boost in Norway, meanwhile driving down the domestic energy costs. Fossil fuels operations in Norway is also a large source of Norwegian's employment.

It has been argued that Norway can serve as a role model for many countries in terms of petroleum resource management. In Norway, good institutions and open and dynamic public debate involving a whole variety of civil society actors are key factors for successful petroleum governance.[11]

The International Energy Agency notes in a 2018 report that the fossil fuel industry in Norway may face various challenges in the future.[12] New sources of energy and methods of production like Shale and Hydraulic fracturing (commonly known as fracking) may substitute oil and gas. Renewable Energy also poses a large risk to reducing fossil fuel production and deployment of new technologies. A new generation of people in the workforce may also lead oil producers to face backlash.[12] Oil is facing a decline in price on the global market which plays a large role in global and European decarbonisation [13] The diminishing consumption of oil is impending, but the speed and scale of the transition to renewable energy sources is debated. In this regard, peak demand of oil is a large topic of discussion for oil producers. Current and future prices of oil has a much larger effect on peak demand for oil producers than solely relying on sales volumes' immediate effect.[13] Scholars also question when oil and gas will reach its peak demand, but an increasing amount of scholars are more concerned with what happens after the peak - whether there will be a plateau, gentle decline, or sudden collapse[13]

Increasing competition among oil suppliers also poses as a challenge within the fossil fuel debate. The evident transition to renewable energy may cause suppliers to quickly secure the remaining supply of oil so their fossil fuel assets do not go unprofitable and undeveloped.[13] The European Union's history of taxing oil products and carbon-intensive also supports the transition away from fossil fuels.

North Sea oil

Source: Norwegian Central Bureau of Statistics
Natural gas production in Norway (red) and natural gas exports (black)

In May 1963, Norway asserted sovereign rights over natural resources in its sector of the North Sea. Exploration started on July 19, 1966, when Ocean Traveller drilled its first hole. Initial exploration was fruitless, until Ocean Viking found oil on August 21, 1969. By the end of 1969, it was clear that there were large oil and gas reserves in the North Sea. The first oil field was Ekofisk, which produced 427,442 barrels of crude in 1980. Subsequently, large natural gas reserves have also been discovered and it was specifically this huge amount of oil found in the North Sea that made Norway's separate path outside the EU facile.[14]

Against the backdrop of the 1972 Norwegian referendum to not join the European Union, the Norwegian Ministry of Industry, headed by Ola Skjåk Bræk moved quickly to establish a national energy policy. Norway decided to stay out of OPEC, keep its own energy prices in line with world markets, and spend the revenue—known as the "currency gift"—in the Petroleum Fund of Norway. The Norwegian government established its own oil company, Statoil (since renamed Equinor), which was raised that year,[15] and awarded drilling and production rights to Norsk Hydro and the Saga Petroleum.[citation needed]

The North Sea turned out to present many technical challenges for production and exploration, and Norwegian companies invested in building capabilities to meet these challenges. A number of engineering and construction companies emerged from the remnants of the largely lost shipbuilding industry, creating centers of competence in Stavanger and the western suburbs of Oslo. Stavanger also became the land-based staging area for the offshore drilling industry. Due to refinery needs when making special qualities of commercial oils, Norway imported NOK 3.5 billion of foreign oil in 2015.[16]

Barents Sea oil

Main article: List of oil and gas fields of the Barents Sea

In March 2005, Minister of Foreign Affairs Jan Petersen stated that the Barents Sea, off the coast of Norway and Russia, may hold one third of the world's remaining undiscovered oil and gas.[17] Also in 2005, the moratorium on exploration in the Norwegian sector, imposed in 2001 due to environmental concerns, was lifted following a change in government.[18] A terminal and liquefied natural gas plant is now[when?] being constructed at Snøhvit, it is thought that Snøhvit may also act as a future staging post for oil exploration in the Arctic Ocean.[19]

Electricity generation

The Rånåsfoss power station (98MW) on the Glomma River. Norway's 1,166 hydroelectric generating stations provide between 98% and 99% of the country's power supply.
Main article: Electricity sector in Norway

Electricity generation in Norway is almost entirely from hydroelectric power plants. Of the total production in 2005 of 137.8 TWh, 136 TWh was from hydroelectric plants, 0.86 TWh was from thermal power, and 0.5 TWh was wind generated. In 2005 the total consumption was 125.8 TWh.[1][needs update]

Norway was the first country to generate electricity commercially using sea-bed tidal power. A 300 kilowatt prototype underwater turbine started generation in the Kvalsund, south of Hammerfest, on November 13, 2003.[20][21]

Norway and Sweden's grids have long been connected. Beginning in 1977 the Norwegian and Danish grids were connected with the Skagerrak power transmission system with a transmission capacity of 500 MW, growing to 1,700 MW in 2015.[22] Since 6 May 2008, the Norwegian and Dutch electricity grids have been interconnected by the NorNed submarine HVDC (450 kilovolts) cable with a capacity of 700 megawatts.[23]

Carbon emissions

Despite producing the majority of its electricity from hydroelectric plants, Norway is ranked 30th in the 2008 list of countries by carbon dioxide emissions per capita and 37th in the 2004 list of countries by ratio of GDP to carbon dioxide emissions. Norway is a signatory to the Kyoto Protocol, under which it agreed to reduce its carbon emissions to no more than 1% above 1990 levels by 2012.

On April 19, 2007, Prime Minister Jens Stoltenberg announced to the Labour Party annual congress that Norway's greenhouse gas emissions would be cut by 10 percent more than its Kyoto commitment by 2012, and that the government had agreed to achieve emission cuts of 30% by 2020. He also proposed that Norway should become carbon neutral by 2050, and called upon other rich countries to do likewise.[24] This carbon neutrality would be achieved partly by carbon offsetting, a proposal criticised by Greenpeace, who also called on Norway to take responsibility for the 500 m tonnes of emissions caused by its exports of oil and gas.[25] World Wildlife Fund Norway also believes that the purchase of carbon offsets is unacceptable, saying "it is a political stillbirth to believe that China will quietly accept that Norway will buy climate quotas abroad".[26] The Norwegian environmental activist Bellona Foundation believes that the prime minister was forced to act due to pressure from anti-European Union members of the coalition government, and called the announcement "visions without content".[26]

In January 2008 the Norwegian government went a step further and declared a goal of being carbon neutral by 2030. But the government has not been specific about any plans to reduce emissions at home; the plan is based on buying carbon offsets from other countries.[27] Globally, Norway set a clear agenda in terms of climate leadership and mitigating negative consequences stemming from climate change. In terms of climate goals, Norway, along with The Netherlands, has one of the most strict timelines to eliminate fossil fuels and reduction carbon emissions.[28] However, The Federation of Norwegian Industries notes in a 2021 report that Norway is far from realising its goals concerning climate action and reducing emissions from carbon for both 2030 and 2050 [29]

Carbon capture and storage

Norway was the first country to operate an industrial-scale carbon capture and storage project at the Sleipner oilfield, dating from 1996 and operated by Equinor. Carbon dioxide is stripped from natural gas with amine solvents and is deposited in a saline formation. The carbon dioxide is a waste product of the field's natural gas production; the gas contains 9% CO2, more than is allowed in the natural gas distribution network. Storing it underground avoids this problem and saves Equinor hundreds of millions of euros in carbon taxes. Sleipner stores about one million tonnes of CO2 a year.[30]

Large oil companies have invested in carbon capture and storage technology in Norway. The Northern Lights Project is the world's first network project within carbon capture and storage signed by Equinox, Shell, and Total totalling USD 675 million.[28]

See also

References

  1. ^ IEA Key World Energy Statistics Statistics 2015 Archived 2016-03-13 at WebCite, 2014 (2012R as in November 2015 Archived 2015-05-05 at WebCite + 2012 as in March 2014 is comparable to previous years statistical calculation criteria, 2013 Archived 2014-09-02 at the Wayback Machine, 2012 Archived 2013-03-09 at the Wayback Machine, 2011 Archived 2011-10-27 at the Wayback Machine, 2010 Archived 2010-10-11 at the Wayback Machine, 2009 Archived 2013-10-07 at the Wayback Machine, 2006 Archived 2009-10-12 at the Wayback Machine IEA October, crude oil p.11, coal p. 13 gas p. 15
  2. ^ "Free publications" (PDF). www.iea.org. Archived from the original (PDF) on 2013-03-09. Retrieved 2013-10-18.
  3. ^ Norway: Energy and Power, Encyclopedia of the Nations
  4. ^ 3000 billion tons of coal off Norway's coastline, by R.J. Wideroe & J.D.Sundberg, Energy Bulletin by Verdens Gang, 29 December 2005
  5. ^ a b "Exports of Norwegian oil and gas". Norwegianpetroleum.no.
  6. ^ a b c d "Archived copy". Archived from the original on 2016-11-14. Retrieved 2016-11-14.{{cite web}}: CS1 maint: archived copy as title (link)
  7. ^ a b c Moe et al. (eds.), E.; Godzimirsk, Jakub M. "6: The Norwegian Energy Security Debate". The Political Economy of Renewable Energy and Energy Security (2014 ed.). Palgrave Macmillan, a division of Macmillan Publishers. {{cite book}}: |last1= has generic name (help)
  8. ^ "How much carbon dioxide is produced from burning gasoline and diesel fuel? - FAQ - U.S. Energy Information Administration (EIA)". www.eia.gov.
  9. ^ a b Environmental Defense Fund; International Emissions Trading Association (May 2015). NORWAY: AN EMISSIONS TRADING CASE STUDY (2015 ed.). pp. 1–11.
  10. ^ a b c d "Exports of Norwegian oil and gas".
  11. ^ Indra Overland (2018) ‘Introduction: Civil Society, Public Debate and Natural Resource Management’, in Overland, Indra. (2018). Introduction: Civil Society, Public Debate and Natural Resource Management. doi:10.1007/978-3-319-60627-9_1.
  12. ^ a b "World Energy Outlook 2018 – Analysis".
  13. ^ a b c d Froggatt, A., Stevens, P., Bradley, S., Canzi, E. G., & Burton, A. (2020). Expert Perspectives on Norway’s Energy Future. 98.
  14. ^ Baten, Jörg (2016). A History of the Global Economy. From 1500 to the Present. Cambridge University Press. p. 30. ISBN 978-1-107-50718-0.
  15. ^ Einar Lie (18 January 2017). "The History of Statoil, 1972-2022 (Project)". Department of Archaeology, Conservation and History, University of Oslo. {{cite web}}: Missing or empty |url= (help)
  16. ^ "Statoil hemmeligholder oljeimport". Stavanger Aftenblad. Archived from the original on 25 May 2016. Retrieved 24 May 2016.
  17. ^ Petersen, Jan (2005-03-05). "Transatlantic Efforts for Peace and Security". Speech to Carnegie Institution, Washington D.C. Minister of Foreign Affairs, Norway. Retrieved 2010-08-05. The Barents Sea also contains huge energy resources – perhaps as much as one third of the world's remaining undiscovered oil and gas resources are to be found in this area
  18. ^ Acher, John (2005-11-16). "Norway Takes Oil Bids For Barents Sea Frontier". World Environment News Planet Ark. Retrieved 2010-08-05.
  19. ^ Krauss, Clifford; Myers, Steven Lee; Revkin; Romero, Simon (2005-10-10). "As Polar Ice Turns to Water, Dreams of Treasure Abound". New York Times. Retrieved 2010-08-05.
  20. ^ "Tidekraft". Archived from the original on 2008-05-16. Retrieved 2021-05-03.
  21. ^ Penman, Danny (2003-09-22). "First power station to harness Moon opens". New Scientist. Retrieved 2018-04-23.
  22. ^ Lind, Anton. "600 kilometer søkabel skal føre strøm mellem Norge og Danmark" Danmarks Radio, 12 March 2015. Accessed: 13 March 2015.
  23. ^ "TenneT - Project description". Archived from the original on 2007-11-09. Retrieved 2008-07-04.
  24. ^ "Speech to the congress of the Labour Party". Office of the Prime Minister of Norway. 2007-04-19. Retrieved 2010-06-20.
  25. ^ "ABC News - ABC News". ABC News. Archived from the original on 2011-06-29. Retrieved 2007-04-27.
  26. ^ a b "The Norway Post : Labour Party aims for 30 % cuts in greenhouse gases". www.norwaypost.no. Archived from the original on September 29, 2007.
  27. ^ Rosenthal, Elisabeth (2008-03-22). "Lofty Pledge to Cut Emissions Comes With Caveat in Norway". New York Times. Retrieved 2010-06-20.
  28. ^ a b "Best Countries for Green Living". U.S. News. U.S. News & World Report.
  29. ^ Energy Transition Norway 2021 (PDF) (Report). DNV. 2021.
  30. ^ "SACS". www.sintef.no.

Further reading

External links

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