1 The challenges of oil and gas production Klaus Mohn (PhD) Special adviser, StatoilHydro Meeting of IOE European Members Oslo, 18 September 2008 2 Shifting sentiments... From surplus via shortage to inconvenience USD/bbl 50 USD/bbl > 100 USD/bbl 3 Energy issues rise on the geopolitical agenda Security of supply Resource nationalism Crisis what crisis? Unlocking petroleum resources through political integration Europe is surrounded by resources Norway Russia Northern Africa Caspian region Challenges relate to politics, investment climate, and human resources Protection against depletion available in Russia and the Middle East Nordic oil and gas for global markets Northward growth may may narrow energy gap Oslo Washington DC ,000 Production Demand The US gas market (bcm) 1, ,000 Production Demand European gas (bcm) 705 Source: US Department of Energy (DoE) and International Energy Agency (IEA). Oslo Washington DC Prepare for a rise in the price of carbon Average CO2 emission per boe (kg) 7 The challenges of oil and gas production Thank you for your attention!