Energy security supply: Norway

Overview

• As a net exporter of oil, Norway is not bound by the IEA 90 day stockholding commitment.
• Since 2002 oil production has been declining.
• Norway produced 1.91 million bpd in 2012.
• Over three quarters of Norway’s oil production is exported.
• Oil demand in 2012 was 218 000 bpd.
• Norway has two refineries with a processing capacity of 310 000 bpd.
• 30% of refining output is consumed domestically.
• Until 2006, Norway held a certain amount of government stocks for oil emergencies.
• Release of company held stocks is the preferred action in an IEA collective action responding to an oil supply disruption.
• In 2012 natural gas production stood at 114.7 billion m³.
• The Norwegian government has estimated the remaining gas resources at 4 trillion m³.
• Norway is a marginal natural gas consumer and exports almost all of its production.

Oil

• Norway is one of only 3 net exporters of oil among IEA member countries.
• Total oil demand has been declining gradually since 2006.
• Overall demand is expected to continue with the downward trend in the upcoming years, mainly due to the progressive decline in gasoline demand.
• Norway is an exporter of refined products.
• The downstream market is very concentrated with Shell, Statoil, Esso and Uno-X controlling 97% of the market.
• Norway has 26 main storage facilities, and approximately 50 distribution storage facilities.
• The most effective demand restraint measures would be targeted at the use of transport fuels.
• Norwegian authorities consider the oil rationing system to be a sub optimal measures for mastering peace time oil supply crisis.
• There is no potential for increasing indigenous production in an emergency.
• Fuel switching from oil is very limited and is not an issue on which Norway has focused.

Gas

• Norway’s administration expects natural gas production to range from 105 – 130 billion m3 over the 2010 – 2020 period.
• In 2012 total gas consumption was 6.1 billion m³.
• Norway consistently exports approximately 95% of its gas production.
• The Norwegian Water Resources and Energy Directorate is the national independent regulatory authority for the downstream natural gas market.
• Security of supply is not considered an issue.
• Natural gas is not a key source of power generation.

Adapted by Claira Lloyd

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/21072014/norway-energy-security-iea/