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 sens itive and vulnerable in its petroleum dependency. The creation of the petro leum fund modifies the problem. Due to market shares, and geographical and political location, Norway may, on the margin, influence factors behind pri ce developments, stability and rent distribution. The article focuses on th e taxation of oil products and natural gas, and the liberalisation of the E uropean gas market, on the demand side. On the supply side, the cooperation with other oil exporters, within and outside the Organisation of Oil Expor ting Countries (OPEC), and the potential for a similar interaction with oth er gas exporters are discussed. The article argues that Norway's unique nat ional interests, as a Western country and a major petroleum exporter, shoul d be more clearly defined. Optimal long-term policies, involving cooperatio n with various countries, institutions and organisations, both on the deman d and the supply side, should be developed.