Today, challenges related to increasing the value creation from the Norwegian petroleum sector is almost absent in the Norwegian public debate. The focus is on how to manage the income from the oil and gas activities. There is a great potential for further development of the Norwegian continental shelf as well as the competence of the Norwegian petroleum sector. This means that the oil and gas policy needs to be based on a different mind set: It has to be ambitious. We have to ask ourselves: What is the best possible way to develop the remaining resources and secure welfare and industrial development in the years to come, says Mr. Einar Steensnæs, Minister of Petroleum and Energy.

Today, the value of the Norwegian Petroleum Fund is more than 625 billion NOK. Still, during the 30 years of petroleum production on the Norwegian continental shelf (NCS) less than a quarter of the petroleum resources has been produced. This illustrates that the largest values in the petroleum activity are still ahead and that there is a long-term perspective for this industry in Norway. There is a hundred year perspective for oil and gas production on the NCS.

In today's White Paper the government describes two scenarios for the development of the NCS: the decline scenario and the long-term scenario. In the decline scenario the oil and gas industry and the authorities are satisfied with what they have accomplished so far. Thus, the development of the NCS and the Norwegian oil and gas industry would stagnate within 10-20 years. The alternative is the long-term scenario. In this scenario there is oil and gas production on the NCS in a 100 years perspective. An important pre-condition for the long-term scenario is that oil and gas prices are on a reasonably high level. It is also important that the oil and gas industry and the authorities are committed to cost efficient development of the petroleum resources. The long-term scenario is demanding. If the industry and the authorities are not committed to develop the petroleum sector, this would mean reduced value creation and revenues for the Norwegian society and the Norwegian state. The best way to safeguard the welfare state is to secure the largest value creation possible from the petroleum sector. Development along the long-term scenario is the foundation of a Norwegian oil and gas industry in all of this century. Today, there are few other Norwegian industries with a corresponding long-term perspective.

New technology and high competence are prerequisites
Development and utilisation of new technology and new working methods are prerequisites for obtaining the long-term scenario. The oil and gas industry is a high-tech industry with a need for highly qualified labour. It is very important for the development of the NCS that the industry is able to attract the best of human capital.

The government will facilitate further development of the petroleum sector by securing that the NCS remains an attractive area for investments, value creation and industrial development in the future. This is according to the Sem-declaration, the government's political platform.

An ambitious environmental and resource management policy
The environment and the relationship to other users of the sea are also of great importance to the long-term development of the industry. More than 30 years of petroleum activities in Norway have proved they can be managed within a sound environmental framework. Co-operation between the different authorities and the oil and gas industry has shown that the petroleum sector can co-exist with other industries and considerations. The government has an ambitious environmental and resource management policy based on sustainable development and co-existence between the petroleum industry, other industries and the environment.

Internationalisation
The NCS is not only the basis for a long-term perspective for the Norwegian oil and gas industry. There is also a substantial international market for goods and services related to the oil and gas activities. Norwegian supply industry had an international turnover of 35 billion NOK in 2001. The international operations are of increasing importance for a lot of companies in the Norwegian oil and gas sector. The government supports the internationalisation of the Norwegian oil and gas industry. This means additional opportunities for industry development besides the potential on the NCS. At the same time the experiences gained in international markets can contribute to strengthening the oil and gas activities in Norway.