- The Norwegian government intends to reduce the oil production by
100 000 – 200 000 barrels per day, if OPEC and other major oil producers reduce production. The decision is made due to the significant decline in crude oil prices, and the possibility for further decline unless supply is reduced, says Minister of Petroleum and Energy, Einar Steensnæs.

- The experience from 1998/99, when oil prices fell as low as 10 USD per barrel, taught us that it is difficult and takes time to stabilize the oil market. Thus, we find it necessary to act in advance to avoid further deterioration of oil prices, says Einar Steensnæs.

There has been a growing imbalance between supply and demand in the oil market in recent months. The slowdown of the world economy has had a negative impact upon the demand for oil. At the same time there has been a gradual increase in global oil production capacity. Inventories will rise unless supply is reduced. Increasing inventories will cause oil prices to fall further.

Norway aims at stable oil prices at a level that is acceptable for oil exporting as well as oil importing countries. Our aim is to avoid prices that will harm the economies of oil exporting countries, but also to avoid prices that can be harmful to the world economy.

- The developments in the oil market can undermine the objective of price stability at a reasonable level, says Steensnæs.

- OPEC has had a price objective of 22 to 28 USD per barrel in recent years. With the weakening of the world economy, this price objective seems unrealistically high, says Steensnæs

- The management of petroleum resources, tax revenue and the effect on the Norwegian economy, justify that Norway should make a contribution to stabilize oil prices, says Steensnæs

Norway will have a dialogue with other producing countries, to confirm that the conditions for Norwegian measures are met.

Norway will reduce oil production when other oil producing countries, including OPEC countries, reduce production. Then Norway will decide on the size and the timing of implementing the measures.

The decision to reduce Norwegian oil production is unilateral. The production regulation measures will be suspended, if other countries do not implement announced measures or if measures do not have the desired effect.