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The Arctic Council consists of the eight Arctic States: Canada, Denmark, Finland, Iceland, Norway, Russia, Sweden and the United States. Let's consider the position of Norway as the member of the Arctic Council.
First of all some historical information about oil and gas production in Norway. In the late 1950s, very few people believed that the Norwegian continental shelf (NCS) might conceal rich oil and gas deposits. However, the discovery of gas at Groningen in the Netherlands in 1959 caused people to revise their thinking on the petroleum potential of the North Sea. This discovery led to enthusiasm in a part of the world where energy consumption to a large extent was based on coal and imported oil. In the eagerness to find more, attention was drawn to the North Sea. Norway’s geological expertise was negative to oil and gas deposits, but this could not stop the enthusiasm after the gas discovery in the Netherlands.
In May 1963, Einar Gerhardsen’s government proclaimed sovereignty over the NCS. New regulation determined that the State owns any natural resources on the NCS, and that only the King (government) is authorized to award licences for exploration and production. The same year, companies got the possibility to carry out preparatory exploration. Even though Norway had proclaimed sovereignty of large offshore areas, some important clarifications remained on how to divide the continental shelf, primarily with Denmark and Great Britain. Agreements on dividing the continental shelf in accordance with the median line principle were reached in March 1965. First licensing round was announced on 13 April 1965. 22 production licences for a total of 78 blocks were awarded to oil companies or groups of companies. The production licences gave exclusive rights for exploring, drilling, and production in the licence area. The first well was drilled in the summer of 1966, but it was dry.
Foreign companies dominated exploration off Norway in the initial phase, and were
First of all some historical information about oil and gas production in Norway. In the late 1950s, very few people believed that the Norwegian continental shelf (NCS) might conceal rich oil and gas deposits. However, the discovery of gas at Groningen in the Netherlands in 1959 caused people to revise their thinking on the petroleum potential of the North Sea. This discovery led to enthusiasm in a part of the world where energy consumption to a large extent was based on coal and imported oil. In the eagerness to find more, attention was drawn to the North Sea. Norway’s geological expertise was negative to oil and gas deposits, but this could not stop the enthusiasm after the gas discovery in the Netherlands.
In May 1963, Einar Gerhardsen’s government proclaimed sovereignty over the NCS. New regulation determined that the State owns any natural resources on the NCS, and that only the King (government) is authorized to award licences for exploration and production. The same year, companies got the possibility to carry out preparatory exploration. Even though Norway had proclaimed sovereignty of large offshore areas, some important clarifications remained on how to divide the continental shelf, primarily with Denmark and Great Britain. Agreements on dividing the continental shelf in accordance with the median line principle were reached in March 1965. First licensing round was announced on 13 April 1965. 22 production licences for a total of 78 blocks were awarded to oil companies or groups of companies. The production licences gave exclusive rights for exploring, drilling, and production in the licence area. The first well was drilled in the summer of 1966, but it was dry.
Foreign companies dominated exploration off Norway in the initial phase, and were