Strategic perspectives on reliable energy resources inEurope.
Norwegian-German cooperation

Chancellor Schröder,

Ladies and gentlemen,

Germany is Norway’s most important trading partner, and energy plays a vital part in our co-operation. It is therefore a particular pleasure for me to welcome Chancellor Schröder and this distinguished group of industrial leaders and government representatives to this seminar.

Energy and energy related industry are of fundamental importance for both Norway and Germany. There is also a strong potential for enhancing our co-operation in the energy sector. I look forward to exploring these possibilities with you and to hearing your ideas for the future. I am pleased that the energy dialogue initiated by the Norwegian-German Willy Brandt Foundation during Minister

Wolfgang Clemet’s visit this spring is being continued here today.

The Norwegian petroleum industry holds enormous potential. Our most important assets are a large natural resource base, our high level of expertise and our advanced technology. The latest estimates from the Norwegian Petroleum Directorate show that only 29 per cent of the recoverable resources have been produced. And we have only produced about 15 per cent of our gas resources. It is further estimated that 26 per cent of the total recoverable resources have not yet been discovered. Thus, my main message to you is that, while the risk related

to the supply of petroleum products has increased worldwide, Norway will continue to be a stable supplier of oil and gas to Germany, to Europe and to the world.

As our continental shelf has matured, we have moved our petroleum industry further north and are currently developing the first field in the Barents Sea. One of the topics Chancellor Schröder and I discussed earlier today was the direction of developments in Russia. Norway gives high priority to developing our relations with our Russian neighbour in a wide range of areas. The Barents region has tremendous energy potential. The decisions that are made about exploration, development and transport in this area will have important consequences for the future. The Barents Sea holds some of the world’s richest fisheries resources. But these Arctic areas are environmentally extremely sensitive. Therefore, it is of the utmost importance that petroleum exploration in the High North fully reflects the special needs and requirements of the Barents region. I am interested in your views on this.

In order to protect the environment and make progress towards the goals of the Kyoto Protocol, we need to use more renewable energy from sources such as solar, wind, hydro and biomass. I am impressed that your government, Chancellor Schröder, has set the ambitious target of providing 25 per cent of total electrical supply from renewable energy sources by 2025. I am also pleased to note that you took the initiative for the International Conference for Renewable Energies held in Bonn last year. We will actively support the follow-up that will take place in the next session of the UN Commission on Sustainable Development in 2006-2007, where energy will be a main topic. The increased use of renewable energy is also a goal for my government. I am very interested in exploring the possibilities of further co-operation between our two countries in this field during our discussion today.

In following up on the Kyoto Protocol, we also need to find improved methods of production for existing sources of energy. My government recently issued a white paper on environmentally friendly gas power technologies. A new centre has been established at Grenland for developing new technologies in this field. We have also established a fund of NOK 2 billion for this purpose.

Natural gas has been the fastest growing fuel for the last few decades, and most analysts expect this growth to continue. Natural gas is the most environmentally friendly of the fossil fuels. When consumption of natural gas increases at the expense of oil, and particularly of coal, it will have a positive impact on the environment. Therefore, a change from coal to gas consumption should be encouraged.

We need innovative solutions for CO ₂ capturing at the European level. This would include the injection of captured CO ₂ from major sources in Europe into oil fields in the North Sea to enhance oil recovery. This would create a win-win situation in terms of increased energy security, reduced emissions of CO ₂ and further technological advances and co-operation.

Innovation and new technologies are prerequisites for further developing environmentally friendly energy production. I am particularly interested in hearing your views on this and your ideas for the future.

Norway and Germany share many of the same goals in the field of energy. And our industrial interests coincide in many fields. Thus I am looking forward to a discussion that may indicate additional future areas of co-operation between Norway and Germany.

I would now like to give the floor to Chancellor Schröder.