For 2001, the Government proposes total expenditures and revenues amounting to NOK 18.3 billion and NOK 111 billion respectively in the Ministry of Petroleum and Energy's budget. The most important measures will be related to the following:

• Development of technology for reducing emissions from gas-fired power plants
• Increased mainland use of natural gas
• Establishment of a new government agency concerned with shifting energy use and production of energy
• Protecting life and material values alongside watercourses in landslide areas

-These measures indicate the Government's political direction when it comes to energy-related matters, states Olav Akselsen, Minister of Petroleum and Energy. Increased mainland use of natural gas and the development of emission-lowering technology will be prioritised. Production and consumption of energy will also be given priority by the Government. These efforts will bring environmental gains, as well as possibilities for developing new business.

Development of technology for reducing emissions from gas-fired power plants
For 2001 the Government proposes to allocate NOK 202.7 million to research and development in the Ministry's budget. This is an increase of NOK 6.3 million, or approximately 3,2 % compared with this year's budget. The increase must be seen in relation to the overall plan for research and development concerning areas related to energy and environment. The increase will mainly be used to develop technologies for reducing emissions from gas-fired power plants. In 2001, the Government proposes to grant a minimum of NOK 20 million to this purpose. The funding will be administered by the Ministry of Petroleum and Energy, the Ministry of Environment and the Ministry of Trade and Industry.

Increased mainland use of natural gas
One of the Government's main objectives concerning energy-related matters, is to increase the mainland use of natural gas. The Government wants to support a pilot project for construction of gas pipelines that will make gas accessible to new users, and also proposes to grant NOK 20 million to this purpose in next year's budget. The Government wants the Bergen area as location for the project due to the area's advancement when it comes to the use of gas, the relatively large population and the closeness to the land based terminals, which receive and process gas from the offshore gas fields.

Establishment of a new government agency concerned with a shift in energy use and energy production
A shift in the way we use and produce energy is a priority. To strengthen this process, the Government proposes to establish a new government agency located in Trondheim. Furthermore the Government proposes legislative amendments which make it possible to collect all funding related to the shifting process in a single energy fund, which will then be administrated by the new agency. Part of the funding today stems from a special tax levied on the electricity transmission tariff, and is administered by local power utilities. The rest is given in the form of state grants administrated by the Norwegian Water Resources and Energy Directorate. The new government agency will resume these responsibilities. The Government proposes to grant NOK 287.2 million to further a shift in the use and production of energy in next year's budget. The proposed increase in tax levied on energy use, will contribute to increased profitability in energy-efficient measures, investments in heat production based on renewables and use of natural gas.

Protecting life and material values alongside watercourses in landslide areas
The Government proposes to increase state grants for construction along watercourses, in order to prevent and minimise damage caused by flooding and landslides. Special attention will be given to the threat of landslides with a programme aimed at protecting life and material values alongside watercourses where this is a potential problem. The programme will include risk analysis and a system for monitoring areas where the anticipated risk of slides is particularly high. Based on the derived information, maintenance of existing utilities and construction of new ones will be conducted in a prioritised order.

The petroleum activity – SDFI
The total net cashflow from state petroleum activity is estimated to approximately NOK 189 billion, an increase of NOK 103.9 billion compared to last year's budget and NOK 28.8 billion compared to the preliminary 2000 account. The net cashflow consists of about NOK 87.8 in net income from the State's Direct Financial Interest (SDFI), NOK 97.3 billion in taxes and NOK 4 billion in stock dividend from Statoil.

SDFI's operating result for 2001 is estimated to approximately NOK 78.2 billion. The calculated costs related to depreciation and interests, which are subtracted when deriving the result, are estimated to NOK 26.5 billion. The operating result is about NOK 33.8 billion higher than this year's budget and NOK 20.7 lower than the preliminary 2000 account. The current oil price estimates are NOK 235 per barrel for 2000, and NOK 180 per barrel for 2001. SDFI's share of investments on the Norwegian shelf are estimated to approximately NOK 16.2 billion, a reduction of NOK 3.5 billion compared to this year's budget, and an increase of NOK 5.7 billion compared to the preliminary 2000 account.

Statkraft SF and Statnett SF
The income from interests and instalments related to the Ministry's loans to the state-owned companies Statkraft and Statnett, is estimated to NOK 1.1 billion in 2001. The expected dividend payments from the two companies amount to NOK 562.5 and 250 million for Statkraft and Statnett respectively.