Northern Lights: Norway's New Era of Natural Gas
Norway is about to move into a new era of gas production. By 2010 production will reach 120 billion cubic meters (Bcm), and Norway will become Europe's leading domestic gas producer and the second largest gas supplier, behind Russia. However, there is uncertainty over how long this level can be sustained-or overtaken-in the post-2010 period. In CERA's view the answer depends on the three issues:
* Investing for the next decade. Maintaining gas production at 120 Bcm or even higher will depend a lot on investment decisions made within the next five to ten years, not only in terms of field development but also of transport infrastructure.
* The Norwegian authorities' approach to energy issues. The Norwegian government has always played and will continue to have a key role on monitoring the development of oil and gas resources.
* The challenge of the Barents Sea. Discovery and development of reserves in this area requires meeting a complex set of environmental and technological challenges.
