Speech at technology seminar in Rio

Excellencies,
Ladies and gentlemen,

Brazil and Norway are oceans apart. But the ocean doesn’t just divide us, it also unites us. Through centuries of shipping and trade. And now through flourishing partnerships in oil and gas exploration.

I am very happy to see representatives of so many Norwegian and Brazilian companies here today. And the prospects for expanding our cooperation are great.

World oil supplies are scarce. Few significant discoveries are now being made. Brazil is an exception. The Brazilian continental shelf is one of the most promising areas of exploration today. The rewards could be bountiful.  But the challenges are great.

Brazil must now find ways of developing resources that lie beneath thousands of metres of water and salt.

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Norwegian companies have successfully overcome major challenges in the development of our own oil and gas sector: deep seas and high winds, cold weather and dark winters.

Through the development of cutting-edge technology, companies are able to operate safely in these waters.

As new discoveries are made, Norwegian oil and gas production has had to go deeper and develop further.

The new Ormen Lange gas field, was developed one thousand metres below the sea surface. In strong sea currents and on a very uneven seabed. Today it supplies Britain with 20 per cent it’s total gas consumption.

The recovery rate on the Norwegian continental shelf is now very high.

When Ekofisk – the first Norwegian oil field – was put into production in 1971, the recovery rate was only about 20 per cent. Due to technological developments, the recovery rate today is close to 50 per cent.

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Brazil and Norway discovered oil at the same time, at the end of the 1960s. Many of our experiences are the same. Many of our challenges are the same.

Brazil has also developed an advanced offshore industry. Petrobras is one of the leading oil companies in the world. And your competence in deep-sea drilling is unsurpassed.

Nowhere in the world has anyone drilled oil wells in deeper waters than Petrobras has done in Brazil.

Our common experience has provided the basis for a number of important partnerships.

Norwegian supply ships are being built in Rio. Some of them are involved in the Brazilian offshore sector. With Brazilian employees on board.

Norwegian drilling experts are exploring the Brazilian continental shelf together with Petrobras.

Brazilian and Norwegian world-class expertise could prove decisive in developing the sub-salt layers.

Let us unite our knowledge to develop new technologies. Together let us move the frontiers of human ingenuity.

Ladies and gentlemen,
Politicians like me do not develop technologies or drill oil wells. This is the task of the industry. It is your job.

But the responsibility for governments is to create a framework that enables you to build a competitive and dynamic industry.

The Norwegian experience is that three factors are vital:

The first is a predictable regulatory regime. The Norwegian regime sets high standards. But it is transparent and efficient.

Our environmental and safety standards are among the highest in the world. But they are rational and fair. Our taxes are high, but they are stable and predictable.

Second, a clear division of roles between authorities and companies is important.

For Norway it has been decisive to maintain national control of our resources. We have achieved this through state participation in the petroleum sector. At the same time, we have welcomed private and foreign participation.

And this is the third vital Norwegian experience.

International cooperation and competition is key in developing cutting-edge technology and promoting best practices.

Foreign companies have participated in the Norwegian petroleum sector since the very beginning. Last year 13 new companies were pre-qualified as licensees on the Norwegian continental shelf.

They have provided us with the capital, the competence and the competition to realise our potential.

Without foreign companies, Norwegian petroleum technology would not be where it is today.

Ladies and gentlemen,
The main challenges mankind face today are poverty and climate change. But we are confronted with a dilemma:

Energy supply is a precondition for economic growth, and for reducing poverty. Fossil fuels will remain the main source of energy for many years to come. And the use of fossil fuels leads to global warming.

The challenge is therefore to reduce emissions of CO2 at the same time as the use of fossil fuels increases.

This challenge can only be met by political determination and technological innovation.

Preventing deforestation and capturing carbon could account for more than 40 per cent of the necessary global emission reductions by 2050.

The government of Brazil has taken bold steps to preserve the Amazon forest. Norway is ready to support this important effort.

The Norwegian government and StatoilHydro have embarked on an ambitious carbon capture programme. Within a few years, we aim to have a full-scale facility in operation at the Mongstad gas-fired power plant on the west coast of Norway.

For more than ten years now, CO2 from the Sleipner gas field in Norway has been re-injected into the continental shelf. And the CO2 has stayed there. We have proven that it can be done, and proven that it is safe.

Petrobras also has valuable experience in carbon capture, and have initiated a cooperation with StatoilHydro. This is a cooperation for the future.

Ladies and gentlemen,
All of you present here today have an instrumental role to play in ensuring successful Norwegian-Brazilian partnerships. Politicians create opportunities. But it is your joint efforts and commitment that produce results. 

I am confident that today’s seminar will provide further inspiration for the future.

Thank you.