Petroleum resources as the major driving force in the Arctic

Feb. 1, 2007
On the first of December last year, the Norwegian government presented its strategy for the High North.

On the first of December last year, the Norwegian government presented its strategy for the High North. Meeting the challenges and opportunities in this area is its main priority. One third of mainland Norway lies north of the Arctic Circle, and Norway has the responsibility for managing resources in waters six times the size of its mainland territory.

The main issues are sustainable use of renewable and non-renewable resources, climate change, and environmental protection. It all amounts to securing safe and healthy living conditions for people in the region, based on sound economic activities.

Some estimates indicate that the Arctic might contain as much as 25% of undiscovered global petroleum reserves, although this cannot be determined until we have harder facts.

Furthermore, our interest in the High North makes it important to strengthen our long-standing cooperation with Russia. Russia and Norway are both significant producers of oil and gas. We are neighbors in the North, and we share the responsibility of managing the vast Barents Sea. Moreover, it is in both countries interest to develop an ever closer cooperation to ensure sustainable management of the natural resources in the Barents Sea.

In this respect, it is important to have a very long-term perspective.

We will continue to develop our cooperation with the Russians, not least with regard to agreeing a delimitation line in the Barents Sea. And together with our neighbor Russia, we share the ambition of developing this region in accordance with the highest environmental standards. Our ambition is to be in the lead in developing these possibilities.

Integrated Management Plan

The Norwegian government presented the Integrated Management Plan for the area from Lofoten to the Barents Sea in March 2006. The plan is a pioneering effort to achieve an ecosystem-based management of the oceans surrounding Norway. It is the first time we have completed such a thorough process. All influences on the ecosystem in the Lofoten - Barents Sea area were evaluated within the larger context, and it concluded that the Barents Sea environment is in a satisfactory state.

The government intends to maintain this satisfactory state also in the future, and it has put restrictions on petroleum activity in the management plan area:

  • Zero-discharge from the activity is a prerequisite for all petroleum activity in the Norwegian Barents Sea
  • No petroleum activities will be initiated in coastal areas, and in areas of particular fisheries and environmental importance. As we move further away from the coast-line, fewer restrictions are placed on petroleum activity
  • No petroleum activities will be initiated outside Lofoten and Vesterålen during the current parliamentary period. For the areas named Nordland VII and Troms II the question of petroleum activities will be considered when the management plan is revised in 2010.

Technology and the Arctic

Technology is a vital prerequisite in the development of Norwegian petroleum resources. We now see discoveries made years and even decades ago being developed. This is mostly due to cutting-edge technology enabling development of resources in deepwaters with high pressure and geological complexity. New technology also enables increased recovery from existing fields.

Looking into the future, many of the fundamental technological challenges facing the oil and gas industry will be the same in the Arctic as in other areas where the industry is active or expanding into. The activities at the Snøhvit and Ormen Lange developments represent valuable experience which can be used in future Arctic developments.

Challenges that are more specific to the Arctic will be the ability to handle geographically related conditions such as extreme temperature and weather conditions, icing, and problems related to ice infested installations.

Furthermore, the ability to develop remote resources located at very long distances from existing infrastructure, and the ability to operate in a secure and sustainable manner in highly environmentally sensitive areas are of particular concern in the Arctic.

Increased research and development efforts are needed to meet all of these challenges. These efforts have mainly to be met by industry, but the government also intends to contribute in accordance with the goals set out in the strategy for the High North.

To sum; we now have a real opportunity to demonstrate how modern sustainable management methods can be applied to develop the petroleum resource base in the North. Cooperation with our Russian neighbors is a very important part of this opportunity.

Exploitation of the petroleum resources will have to take place in harmony with the environment. We must continuously develop our knowledge of the ecosystem in the North to secure that our decisions are taken on the basis of the best available information and - not to forget - we must move ahead in harmony with the thousand-year old tradition of harvesting renewable resources.

I believe that all of this is possible and that northern Norway has just seen the beginning of its petroleum era. I am convinced that northern Norway and the northern areas in a broader meaning will experience many great achievements in the years to come. The potential and possibilities are there.

Odd Roger Enoksen
Minister of Petroleum and Energy, Norway

Editor’s Note: This is an excerpt from his speech given at the Arctic Frontiers Conference, Tromsø, on Jan. 22, 2007.