Norway is a major non-OPEC source of oil. It is a major world supplier of oil and natural gas, especially to the European Union. Norway is an advanced, highly-developed economy that has greatly benefited from the utilization of its hydrocarbon resources. The Norwegian government holds a dominant stake in the oil sector. Statoil, 71 percent-owned by the government, controls over 60 percent of Norways oil and gas production. All of Norways oil reserves are located offshore on the Norwegian Continental Shelf (NCS), which is divided into three sections: the North Sea, the Norwegian Sea and the Barents Sea. Norways largest oil field in Norway is Ecofisk, operated by ConocoPhillips, which produced 280,000 bbl/d in Jan-May 2006. A potential source of new oil production is the Barents Sea, which could contain large quantities of oil reserves. Norway had 310,000 bbl/d of crude oil refining capacity in 2006. The country has two major refining facilities: the 110,000-bbl/d Slagen plant, operated by ExxonMobil, and the 200,000-bbl/d Mongstad, operated by Statoil. Norway is the second-largest supplier of natural gas to continental Europe. A small group of fields account for the bulk of Norways total natural gas production. The single largest field is Troll, which produced 3.11 Bcf per day (Bcf/d) during the first half of 2006 and represents about one-third of Norways total natural gas production. Norway has worked with Russia to jointly develop the giant Shtokman natural gas field and pursue other oil and gas projects in the area. Norway operates numerous natural gas pipeline connects with the rest of Europe. Norway has little coal production or consumption. Almost all of Norways electricity supply comes from hydroelectric generation.
Norway is an advanced, highly-developed economy that has greatly benefited from the utilization of its hydrocarbon resources. In 2005, the country had a gross domestic product (GDP) of $295 billion, and a per-capita GDP of $64,000, which is one of the highest in the world. The Norwegian economy grew by 2.5 percent in 2005, and is forecasted to grow by 2.2 percent in 2006. Norways economy is highly dependent on its offshore oil and natural gas sector, which provides the government with its largest single source of revenue and the largest contribution to GDP. In recent years, high oil prices have made for government budget and current account surpluses, and rising disposable income. Norways dependence upon oil and gas revenues presents long-term challenges for the country, especially because many industry analysts believe that North Sea oil and gas production has already reached or passed its peak. In particular, the country faces pension liabilities and other welfare obligations. In response to these challenges, the Norwegian government created the Petroleum Fund in 1990, later renamed the Government Pension Fund in 2005. A portion of annual oil and gas revenues flow into the Fund each year, which serves the dual purpose of buffering the short-term variations in oil revenues and providing a mechanism to transfer current wealth to future generations. The Fund, which holds a combination of cash, bonds, and shares, holds only international assets and stood at some $240 billion in March 2006.