The Government proposes total expenditures and income items amounting to NOK 17.8 billion and 107.6 billion respectively in the Ministry of Petroleum and Energy's budget. The most important measures will be related to the following:

• Increased onshore use of natural gas
• Development of technology for reducing emissions from gas-fired power plants
• Sustainable changes in energy use and production of energy
• Increased safety in landslide areas
• Internationalisation of the petroleum sector
• Improvement of safety level in the petroleum sector

-These measures indicate the Government's political direction when it comes to energy-related matters, states Olav Akselsen, Minister of Petroleum and Energy. Increased onshore use of natural gas and the development of emission-lowering technology will both be prioritised, as will changes in the way we use and produce energy. Completion of these tasks will lead to both environmental gains, as well as possibilities for developing new industries.

Increased onshore use of natural gas
One of the Government's main objectives concerning energy related matters, is to increase the onshore use of natural gas in Norway. An increase in onshore use and processing of natural gas will lead to further industrial development. For 2002 the Government proposes a grant of totally NOK 50 million to natural gas infrastructure, an increase of NOK 30 million compared with this year's budget. The allocation will secure the pilot project in Bergen area as well as other projects. From 2002 Enova SF will administer the grants for onshore use of natural gas.

Development of technology for reducing emissions from gas-fired power plants
The Government wants to increase the development of CO ₂ reducing technology, in co-operation with other countries. Both research and financial commitment are needed to make the technology commercially available. The Government proposes to grant NOK 35 million next year for this purpose, over the budgets of the Ministry of Petroleum and Energy and the Ministry of Environment. The Ministry of Petroleum and Energy will allocate NOK 20 million of this funding.

Sustainable changes in use and production of energy - Enova SF
The establishing of Enova SF will facilitate the co-ordinated work on environmentally friendly changes in energy use and production. Enova will initiate a more efficient energy use, production of new renewable energy and environmentally friendly use of natural gas. Enova will be financed through an energy fund. This fund will consist of state grants and tariffs. The yearly income of the energy fund will be approximate NOK 470 million. The state allocated funds are proposed to be NOK 269 million in 2002 and the rest of the income will come from the electricity transmission tariff. This tariff is currently at 0.3 øre/kWh.

Increased safety in landslide areas
The Government proposes to allocate approximately NOK 55 million for landslide preventing constructions along watercourses. At least NOK 10 million from these funds will be used in 2002 to escalate the program for increased safety in clay landslide areas. The programme will include risk-analysis and a system for monitoring areas where the anticipated risk of landslides is particularly high. Based on the derived information, maintenance of existing safeguarding installations and construction of new ones will be conducted in a prioritised order.

Grants to museums
The Government proposes to grant NOK 1 million to the Norwegian Petroleum Museum, and NOK 1,5 million to a hydropower museum in Tyssedal.

Internationalisation of the petroleum sector
Internationalisation is important for the future of the Norwegian oil and gas industry. To secure employment in the supply industry, it is important for these companies to get access to the growing international market. For the Norwegian oil companies an increased international engagement is important.

The Government proposes to increase state grants for internationalisation of the petroleum sector, including support to Intsok and Petrad, from NOK 11 to 16 million, an increase of 50 per cent.

Improved safety level in the petroleum sector
The Government proposes a package of measures of NOK 20 million in next year's budget to improve the safety in the petroleum sector. The Ministry of Petroleum and Energy and the Ministry of Labour and Government Administration will administer the grants.

The petroleum activity – SDFI
The State's net cash flow from the petroleum operations is estimated to be approximately NOK 205.5 billion in 2002. Of this, NOK 117.5 billion are taxes and fees, and NOK 88.4 billion are net payments from the SDFI and dividend from Statoil. The State's share of removal costs is estimated to NOK 140 million. The operating cost for Petoro AS administering SDFI is estimated to NOK 250 million.

The current oil price estimate is NOK 200 per barrel for 2002. SDFI's share of investments on the Norwegian shelf is estimated to approximately NOK 15.3 billion.

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 1 050 million in 2002. The expected dividend payments from the two companies amount to NOK 1 750 and 80 million for Statkraft and Statnett respectively.