The State's revenues from the petroleum activities in 2001 are estimated to be NOK 189 billion. This is NOK 30 billion higher than the estimate for 2000.

The estimate for 2001 is based on an oil price of NOK 180 per barrel, and the estimate for 2000 is based on an oil price of NOK 235 per barrel. The total export value from the petroleum operations is estimated to be reduced by NOK 40 billion from 2000, to about NOK 270 billion in 2001.

The average oil production on the Norwegian continental shelf is expected to increase by about 130.000 barrels per day from 2000. The production forecast for 2001 is approximately 3.4 million barrels per day. The State, by the State's Direct Financial Interest (SDFI), is estimated to produce about 1.4 million barrels per day. The gas export from the Norwegian continental shelf is expected to increase with 6 billion scm, from about 51 billion scm in 2000 to about 57 billion scm in 2001.

The investment level in petroleum operations is expected to fall. In 2001, investments are estimated to be about NOK 48 billion, compared with about NOK 56 billion this year. Exploration drilling and exploration investments in the petroleum operations are included in this estimate. The investments in 2001 are mainly decided by the plans for fields in production and approved field developments.

The State's net cash flow from the petroleum operations is estimated to be NOK 189 billion in 2001. Of this, NOK 97 billion are taxes and fees, and NOK 88 billion are net payments from the SDFI. Dividend from Statoil is estimated to be about NOK 4 billion in 2001.

The oil market situation has changed considerably since the period of low prices in 1998 and early 1999. To avoid too tight an oil market a number of producers have increased their production this year. Norway eased the restraints on production by 100.000 bbls/day as of 1 April and ended the restraints on production as of 1 July. Oil prices have at times been very high and have lead to increased focus on the oil market. Several factors contribute to explain the developments in the oil market, among those the low inventory levels. The market balance indicates that inventories will build in 2000 by approximately as much as they were drawn down in 1999. Increased inventories are expected to lead to lower prices.