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Energy security supply: Norway

Hydrocarbon Engineering,


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/


 

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