Norway – a Global Energy Producer Part IV

By | October 20, 2021

Statkraft and SN Power

Statkraft is a company with a history dating back to 1895 (predecessors to Statkraft which was established in 1992). The government at the time wanted to secure the state and public ownership of the most important natural resources. At that time it was waterfalls and water power. In our time, Statkraft has become a dominant player nationally in hydropower, and in recent years Statkraft has also acquired in several European countries. The company is today Europe’s largest energy producer in renewable energy, primarily hydropower, but also wind power. At the same time, the company is experimenting with production from new renewable energy sources such as salt power, district heating and solar power. In recent years, Statkraft has invested several billion kroner in large dam and hydropower projects in Turkey. In 2011, Statkraft had a turnover of just under NOK 29 billion, and the company has a total of approx. 3500 employees.

SN Power is Statkraft’s arm (Statkraft owns 60 per cent and Norfund 40 per cent of the share capital, the Government Investment Fund for Developing Countries) for investment in and development of renewable energy sources in developing countries. The company has either been planning or has already started such projects in e.g. The Philippines, Nepal, India, Sri Lanka, Brazil, Chile and Peru. Now the company is also looking forward to investing in African countries.

9: An adventure from reality

The development of Norwegian energy policy in the 1970s and the extraction of oil on the Norwegian shelf led to a parallel industrial development that is both impressive and fascinating. Norwegian offshore high technology for use in oil production on the continental shelf is now being exported to more and more countries around the world. Norwegian industry has become a world leader in this area . In 2011, it accounted for 80 per cent of all deliveries globally to offshore drilling rigs and 50 per cent of all deliveries to seismic and underwater equipment. In 2012, an export value of this technology of approx. 180 billion. In 2013, exports are expected to exceed NOK 200 billion.

30 per cent of the Norwegian national product is now linked to the oil industry and the offshore high-tech industry. Furthermore, about 300,000 Norwegian employees have their jobs directly or indirectly linked to this business and industry. All this has happened within approx. 40 years, and it has fundamentally changed Norwegian society and our relationship with the outside world. We have received high-tech development and production in parts of the country. In addition, we have had an immigration of several thousand professionals, partly at a high academic level in this industry.

In the midst of all this, we have become the richest people in the world with a welfare state and a personal prosperity that hardly anyone just a few decades ago thought could be possible. It is in many ways a fairy tale from reality.

Facts

The Norwegian oil industry

  • Norway is the world’s seventh largest exporter of oil and the third largest of gas (2011)
  • In 2010, the petroleum sector accounted for 21 per cent of value creation in Norway, 47 per cent of total exports and 26 per cent of central government revenue
  • For more than 40 years, production on the Norwegian continental shelf has contributed close to NOK 9,000 billion to value creation (GDP) in Norway, a country located in Europe according to EHOTELAT.

Seafood in no time

The Convention on the Law of the Sea deals with virtually all exploitation of the sea, with the exception of military matters. It takes into account that different ways of exploiting the sea are closely linked and must be seen as a whole. The convention has rules that collectively cover all sea areas, the airspace above them, the seabed and its subsoil. It regulates the states ‘rights and obligations in these areas, ie the states’ exercise of authority at sea.

Baseline : The starting point for the calculation of most maritime boundaries is the baselines. The baseline – i.a. at mainland Norway – is defined as straight lines drawn up between points on the outermost headlands and reefs that protrude above the sea at low tide (low tide). By straight line is meant the shortest line between two points. A total of 103 baseline points have been defined along Norway’s coastline. The baseline defines the line from which a country’s maritime territory is to be defined. Within the baseline, we find a country’s internal maritime territory, its inland waters. The outer border of the maritime territory indicates the outer border of Norway’s territory, and is referred to as the territorial border. Within this border, Norway has sovereignty. The territorial boundary extends 12 nautical miles from the baseline.

The continental shelf is the subsea extension of the land mass out to the great ocean depths. The continental shelf is subject to the national authority of the coastal state. The great ocean depths, on the other hand, are an international area.

According to the Convention on the Law of the Sea, all coastal states automatically have a continental shelf up to 200 nautical miles from the baseline . This is an economic zone where the coastal state has the exclusive right to utilize and manage the natural resources there. It is not the same as sovereignty; other countries can e.g. sail there. So far, the outer boundary of the continental shelf often coincides with the outer boundary of the economic zone . However, some states (among them Norway) may have a continental shelf that extends further and then according to criteria laid down in the convention.

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