NoteNote dede l’Ifril’Ifri
The European Gas and Oil Market: The Role of Norway
Florentina Harbo October 2008
Gouvernance européenne et géopolitique de l’énergie The Institut Français des Relations Internationales (Ifri) is a research center and a forum for debate on major international political and economic issues. Headed by Thierry de Montbrial since its founding in 1979, Ifri is a non-governmental and a non-profit organization. As an independent think tank, Ifri sets its own research agenda, publishing its findings regularly for a global audience. Using an interdisciplinary approach, Ifri brings together political and economic decision-makers, researchers and internationally renowned experts to animate its debate and research activities. With offices in Paris and Brussels, Ifri stands out as one of the rare French think tanks to have positioned itself at the very heart of European debate.
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Gouvernance européenne et géopolitique de l’énergie
The original feature of this program is to integrate European governance and energy geopolitics. The program highlights emerging key issues and delivers insight and analysis in order to educate policy makers and influence public policy. The program’s objective is to promote a coherent and sustainable European energy policy.
Notes de l’Ifri (on ifri.org)
October 2008. « The Kashagan Field : a Test Case for Kazakhstan's Governance of its Oil and Gas Sector » Nadia Campaner, Shamil Yenikeyeff October 2008. « Sécurité énergétique en Méditerranée occidentale : nouveaux facteurs, nouvelles politiques. Un regard espagnol » A. Mañé- Estrada October 2008. « Energie et Climat : l'indispensable coopération mondiale » Jacques Lesourne September 2008. « Les relations franco-allemandes dans le secteur de l'énergie ». Jan Horst Keppler, Sophie Méritet, Kristina Notz
Études (books)
Part 4. Gaz et Pétrole vers l'Europe, S. Nies, Paris, La Documentation française, 2008, 218 pages Part 3. The External Energy Policy of the European Union, J. Lesourne (ed.), Paris, La Documentation française, 2008, 135 pages Part 2. L'énergie nucléaire et les opinions publiques européennes, J. Lesourne (ed.), Paris, La Documentation française, 2008, 141 pages
Part 1. Abatment of CO2 Emissions in the European Union, J. Lesourne et J. H. Keppler (ed.), Paris, La Documentation française, 2007, 156 pages
The “Energy editorial” can also be read on the energy pages of Ifri’s website, www.ifri.org
1 © Ifri F. Harbo / The European Gas and Oil Market
Contents
INTRODUCTION...... 3
NORWAY’S RELATIONS WITH EUROPE...... 4
NORWEGIAN ENERGY POLICY...... 7
NORWEGIAN GREEN ENERGY POLICY ...... 34
THE EUROPEAN STRATEGIC GAS AND OIL MARKET...... 39
NORWEGIAN PARTICIPATION IN THE EUROPEAN GAS AND OIL MARKET.....46
EU ENERGY MARKET DEVELOPMENT BETWEEN RUSSIA AND NORWAY .....48
NORWAY’S CONTRIBUTION TO EU ENERGY POLICY DEVELOPMENT IN FIGHTING CLIMATE CHANGE ...... 56
CONCLUSION ...... 58
REFERENCES ...... 61
LIST OF ABBREVIATIONS ...... 65
ANNEX 1 ...... 66
ANNEX 2 ...... 69
2 © Ifri F. Harbo / The European Gas and Oil Market
Introduction*
« L’or noir […] Source de richesse et source de conflits ; mais, plus encore, produit stratégique indispensable au fonctionnement des économies modernes » (André Giraud)
The research question of this paper is related to the role of Norway in the European gas and oil market. This study aims to give a presentation of the energy policy in Norway and Norwegian participation at the European level. The first chapter will introduce Norwegian relations with Europe. For the purpose of my research, I will focus mainly on Norwegian energy policy in the second chapter, presenting Norway’s oil industry in chapter 2.1.; Norwegian gas production in chapter 2.2.; and the Norwegian electrical power system in chapter 2.3. The sub-chapter 2.4. will analyse in detail the activity of the largest Norwegian oil and gas company, StatoilHydro. The third chapter will be dedicated to Norway’s green energy policy (wind, sun and water), etc. The fourth chapter looks at the European perspective and will examine the European strategic gas and oil market in a globalised world. The fifth chapter will present Norway’s participation in the European gas and oil market. Such strategic research must also include a look at the European Union’s (EU) energy market development between Russia and Norway, which will be presented in chapter six. And finally, Norway’s contribution to the development of an EU energy policy in fighting climate change will be emphasised in chapter seven. This research will analyse the following central issues: Norwegian oil industry,