Oil and gas market in Norway

Norway is the largest oil and gas producer in Europe and has the lowest average upstream emissions intensity in Europe. This means that, compared to other major European oil and gas suppliers, Norway produces oil and gas with fewer emissions per barrel. 

The oil and gas sector is an important part of the Norwegian economy, contributing approximately 20% to Norway’s GDP annually. Norway accounts for around 40% of natural gas exports in Europe. The country also supplies around 2% of global oil and 3% of global natural gas demand. In 2024, Norway’s production was around 240.6 million standard cubic metres, with more than half the volume being gas. 

Norway has expertise in offshore industries, technologies. The country is also actively preparing for the green transition as they move toward peak oil production around 2026. Norway has taken multiple steps to decarbonize its oil and gas industry by pursuing opportunities related to: 

Key opportunities for Canadian oil and gas companies in Norway

  • Offshore Northern Seas (ONS): It's the largest energy event in Norway, taking place every 2 years. It offers an important opportunity for Canadian companies to network and meet key contacts. 
  • Green: Norway is committed to decarbonization efforts and net zero. 
  • Companies: The leading Norwegian oil and gas companies have Canadian connections and experience.

Industry highlights

A leading country in offshore oil and gas

#1 exporter of natural gas in Europe

8,800 km of gas pipeline network to Europe 

CAD 98 billion net cash flow expected in 2025 for the oil and gas sector

60% of Norwegian exports are oil and gas

ONS is the top trade event in Norway

Notable challenges for Canadian oil and gas companies in Norway

  • Mature market: Norway is a mature market for this sector and a world leader in the offshore sector. Canadian companies need to have an established track record, high skills and/or unique market pitch or technology to be successful.  
  • Strong competition: Canada faces significant competition from key players such as the United States and European countries. Networking and trust building is essential. 

Norway’s business landscape

Norway has ambitious climate targets that involve cutting emissions by more than half by 2030, aiming to reach net zero by 2050. A large part (97%) of Norway’s energy use already has low carbon intensity because of its hydropower-dominated electricity system. As a result, the emmission cuts will need to come from sectors that are hardest to reduce, such as:

  • heavy industry
  • large-scale transport
  • oil and gas production
  • and agriculture

This means that there is a market for equipment and technology providers. Canada and Norway’s similar views create valuable collaboration opportunities from RDD&D (Research, development, demonstration and deployment) and commercial scale projects.

Canada and Norway enjoy close commercial relations. Bilateral trade benefits from the Canada-EFTA Free Trade Agreement (C-EFTA), a goods-only trade agreement that entered into force in 2009. In 2024, bilateral merchandise trade was approximately 3.1 billion. 

Norway is a member of the European Economic Area (EEA) and is also part of the Schengen area. Norway is known for being a leader in the following industries:

  • Oil and gas
  • Cleantech
  • Maritime
  • Logistics

Contact

Interested Canadian companies can contact Trade Commissioner, Tone Nymoen (Tone.Nymoen@international.gc.ca).

Additional Information

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