The U.S. International Pavilion at ONS

STATE OF THE MARKET

• The energy sector in Norway is stable with 85 billion barrels of untouched oil; the sector represents some 25% of Norway's GDP, and turnover is approximately NOK 360 billion a year, almost half of which is from international markets.
• Norway has added an extra 54,000 square miles of continental shelf, and even in today's volatile energy market there is optimism in the industry regarding new reserves here, estimated at 400-600 million barrels of oil equivalents.
• At $100 per barrel, rising costs were already under scrutiny to meet the demands for maximizing offshore project ROI. At today's $40 - $50 price, mega projects face significant cost challenges. But the storm on the horizon also presents a window of opportunity. Deepwater mega projects remain a long-term core investment for operators as the industry seeks efficiencies, new technology and new methodologies.
• New projects anticipated in the next 10-15 years will demand new technology and risk-taking:
• Offshore activities are taking place in deeper and deeper waters, and operations are becoming increasingly complicated.
• Oil and gas activities are attracting oil companies and the supplier industry further and further north.
• Demanding Arctic conditions require new knowledge and technology solutions that meet requirements relating to HSE, operations in environmentally vulnerable areas and cost-efficient development and production.

New tax cuts have made it more attractive for foreign companies to do business in the region. The bottom line is: Norway is an open door for international companies looking to grow in this part of the world.