Norway Oil and Gas Industry

Norway Oil and Gas industry is performing consistently even when other Western European countries are experiencing constraints. Oil and gas industry of Norway ranks as world’s third largest with its oil production, including NGL and condensate, estimated at about 2.8 million barrels per day and net gas production exceeding 3 tcf a year. Value creation of petroleum resources and competitive production in oil and gas industry in Norway are results of concerted efforts possible due to close interaction between authorities, oil companies, research institutions and universities.

Oil and gas industry at Norway is now operating for almost 40 years with a focus on production in seas. Petroleum industry of Norway has know-how and required expertise to make optimum utilization of petroleum resources in a safe way. Developing petroleum expertise has been integral to Norway’s petroleum policy. Experience, skill-sets and technological advances developed on Norwegian continental shelf are made use by global oil and gas industry.

According to recent reports of central bank of Norway, this Scandinavian country will sell 150 million crowns ($22.16 million) per day in February to acquire foreign exchange for oil fund. This decision has been taken after abstaining from sales in last couple of months. Norway, being highly resourceful in terms of oil, has opted for a $2.9 billion stimulus package of tax cuts. Strategy of increased spending is adopted with an attempt to lessen impact of global downturn.

Norwegian government declared results of Awards in Predefined Areas (APA) in 2008. Oslo will issue 11 licenses in Norwegian Sea, 21 licenses in Norwegian North Sea, and two in Barents Sea. 19 companies have met with approval for operating 34 licenses while 47 companies had earlier applied for production licenses in APA 2008.

A latest update on Norway oil and gas industry reveals that more than $286 billion has been kept aside by Norway in a fund invested abroad to evade overheating of country’s economy. Strict adherence to ethics by oil and gas industry in Norway is reflected from fact that it disqualified Textron Inc. and Canadian mining company Barrick Gold Corp. from its oil fund in relation to their violation of ethical guidelines. This will result in these companies being barred from investing funds worth $300 billion.