Maximising value for society

OljedirektoratetPosted on

The Norwegian Petroleum Directorate (NPD) works ensure that the petroleum resources yield the maximum possible value for society.

  • Norway’s oil and gas resources belong to the Norwegian people, and must benefit society as a whole

  • Contribute to the greatest possible
    value from the petroleum sector

  • The petroleum sector accounts for three-quarters
    of government revenues from industry

Norwegian petroleum policy lays the basis for profitable production of the oil and gas resources in a long-term perspective. See report no 28 (2010-2011) to the Storting. Through its activities and roles, the NPD will contribute to realising the government’s principal goals for the petroleum industry. See the 2017 letter of allocation.

This report places the main emphasis on the NPD’s role as a driving force for realising all economic value from fields and discoveries. For more information on the directorate’s main goals, duties and roles, see npd.no/en/About-us/

Ansatt som holder petroleumsloven

How the NPD works: challenge and set priorities

The NPD gives priority to issues which are important for value creation through the application of purposeful pressure. It carries out its own technical work in order to be in a position to challenge assessments and proposed solutions from the companies. Pressure is applied in dialogue with the companies and by setting operating parameters.

Tre med pengebladerOptimising value for society

The regulatory framework for the petroleum industry are intended to ensure that incentives for the companies coincide with the government’s goal of creating the maximum possible value for society. In some cases, pressure is required from the government to ensure good solutions. The NPD helps to make sure that the companies comply with Norwegian legislation which requires oil and gas resources to be recovered prudently and to the benefit of society.

Government revenues

The petroleum industry has been and remains by far the biggest source of government revenues, even over the past couple of years with low oil prices.

More than 50 years of petroleum operations have yielded overall value creation of about NOK 13 000 billion in current value.

That figure includes production of crude oil, natural gas and pipeline transport, and has been inflated by the consumer price index. See table 9 in the national accounts. The associated supplies industry is not included. See page 13 of the government’s ocean strategy.

This amount is about four times Norway’s total gross domestic product in 2016.

In addition come revenues from the supplies industry and other spin-offs. The total value of petroleum activities for the Norwegian economy is therefore even higher.

NORSKPETROLEUM.NO: The government’s revenues

 

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