Norway's dependence on the oil and gas markets

The article argues that the fluctuations in, and the politicisation of, the global oil market and the European gas market make Norway potentially sensitive and vulnerable in its petroleum dependency. The creation of the petroleum fund modifies the problem. Due to market shares, and geographical and political location, Norway may, on the margin, influence factors behind price developments, stability and rent distribution. The article focuses on the taxation of oil products and natural gas, and the liberalisation of the European gas market, on the demand side. On the supply side, the cooperation with other oil exporters, within and outside the Organisation of Oil Exporting Countries (OPEC), and the potential for a similar interaction with other gas exporters are discussed. The article argues that Norway's unique national interests, as a Western country and a major petroleum exporter, should be more clearly defined. Optimal long-term policies, involving cooperation with various countries, institutions and organisations, both on the demand and the supply side, should be developed.