Ambassador Discusses Energy Secretary Visit, Offshore Oil

UNCLAS OSLO 000750

STATE FOR EUR/NB, EEB/ESC

ENERGY FOR SECRETARY CHU, GAGE, SCOLA, IACOBUCCI

SENSITIVE, SIPDIS
E.O. 12958:N/A
TAGS: ENRG EPET OVIP PREL NO
SUBJECT: Ambassador Discusses Energy Secretary Visit, Offshore Oil
Development with Petroleum and Energy Minister

Ref: Oslo 680

(U) This document is sensitive but unclassified. Please protect
accordingly.

1. (U) In an introductory call with Petroleum and Energy Minister
Terje Riis-Johansen on November 25, the Ambassador discussed Energy
Secretary Chu's planned upcoming visit and development of the
Norwegian Continental Shelf (NCS). Poleconoff, FCS Chief, and
Economic Specialist accompanied the Ambassador. The Minister was
accompanied by Elisabeth Berge, Permanent Secretary, the highest
ranking civil servant in the Ministry; Lars Erik Aamot, Director
General, Oil and Gas Department; Odd Sverre Haraldsen, Director
General, Climate, Industry and Technology Department; William
Christensen, Assistant Director General, Industry and Technology
Department.


2. (SBU) Stressing that he would make himself available for
Secretary Chu, the Minister shared a very tentative program his
ministry proposed, keyed to what they knew about the POTUS visit to
Oslo to accept the Nobel Peace Prize on December 10. Among other
elements, Riis-Johansen proposed:
--a bilateral meeting and a separate lunch;
--a Norwegian presentation on energy and climate research focused on
carbon capture and storage (CCS),offshore wind and subsea petroleum
production;
--travel to a pumped storage station and hydroelectric plant.


3. (U) The Minister also inquired about a program for Mrs. Chu if
she accompanies the Secretary to Norway. The Ambassador thanked
Riis-Johansen for his proposals and said the EMBASSY would share
them with the Department of Energy to help begin planning a program.
Note: The Ministry has subsequently had several direct discussions
with the Department of Energy to develop a program for Secretary
Chu, and post is in direct communication with the Ministry, DOE, and
White House advance to coordinate on the ground. End Note.


4. (SBU) The Ambassador related that he had visited Norway's "oil
city" of Stavanger earlier in the week (see septel). He said he was
impressed by the dynamism of the city's mayor as well as Stavanger's
major role in the Norwegian economy. He noted that U.S. oil
companies were keenly interested in developing new offshore acreage.
Aamot pointed out that there had been few large oil and gas
discoveries in offshore frontier areas since 1997 and that this was
a disappointment. He added that the decision on whether to develop
the environmentally and politically sensitive Lofoten-Vesteralen
areas rested with the GON and the Parliament.


5. (SBU) The Ambassador welcomed majority state-owned Statoil's work
in developing the United States' unconventional gas resources,
including shale gas. The Minister agreed that this work was helping
to unlock vast and unforeseen energy resources which could even make
the U.S. self-sufficient in natural gas. He said that Statoil's
work in unconventional energy areas like shale was sometimes
controversial, however, and that some Norwegian politicians wanted
to curb that activity. He continued that Statoil takes commercial
decisions, such as where it will operate, without interference from
the GON, though he said that the government did make its views known
on strategic decisions. Riis-Johanson cited the recent change of
the company's name from StatoilHydro to Statoil as one such
instance.

White