Ræða á Oil and Gas Explorations in Iceland: Socioeconomic Impacts, 27. júní 2013
ATH: Talað orð gildir
Dear guests,
It is with great pleasure that I welcome you to this conference at Bifröst University on the Socio-economic Impacts of Oil and Gas Explorations in Iceland.
First of all I would like to thank the University for taking the initative and arranging for this conference, in this beautiful surrounding here at Bifröst.
As you can see on the agenda we have three academics from Norway as keynote speakers to share their experiences with us and I especially welcome them. We have, over the years, always enjoyed a very close and good partnership with Norway in the field of oil and gas explorations and I am sure that we will continue to do so.
The aim of this conference is to establish a dialogue between academics and stakeholders to explore the key socio-economic issues which are likely to emerge if an oil and gas sector will be developed in Iceland in the coming years. Iceland is relatively new in this field and we are still facing various legal, economical, environmental and political issues related to oil and gas exploration activities. Therefore a conference like this one today is of great value for us.
I have been in office as Minister of industry and commerce - that also includes energy, tourism, business affairs and oil - for one month now and I can assure all of you that the issues related to oil and gas explorations on the Icelandic continental shelf are one of the key issues that I will focus on during the next 4 years. This is simply a fascinating sector with enormous potentials and challenges.
The importance of the oil and gas sector is underlined in the Policy Statement of the Coalition Government formed by the Progressive Party and the Independence Party from the 23rd of May. As is stated in the Statement the Government will encourage the exploitation of potential oil and gas resources as soon as practicable, should these be discovered in sufficient quantity to make extraction feasible. To this end the Government will undertake preparatory work in connection with transport, accident prevention and rescue work, environmental protection, infrastructure, co-operation with neighbouring countries and regulatory issues. The Government will also establish a special state oil company which will have the purpose of administering licenses for oil and gas production and to lay the basis for ensuring that potential benefit from such production is utilised by society as a whole and on a long-term basis.
For the last couple of years we have been on the pathway of increasing our knowledge of oil and gas exploration, both within Icelandic companies and the public administration. It is important to continue on this road and to bear in mind that such knowledge is valuable whether or not actual production of hydrocarbons in Icelandic jurisdiction will materialise.
As most of you probably know we have had two licensing rounds in the Dreki area for exploration and production of hydrocarbons. In January this year the National Energy Authority issued two licences for exploration and production in the area. Through PETORO, the Norwegian Government participates in both licenses with a 25% share in accordance with the Jan-Mayen agreement between Iceland and Norway from 1981. We welcome this participation from the Norwegian Government as it shows that the Norwegian Government has good faith in the area.
Good progress has been made on the processing of the third license for exploration and production in the Dreki Area. Following my opening remarks, Kristinn Einarsson from the National Energy Authority will give you a more detailed overview of the status of the licenses and explorations in the Dreki area, and what activities can be expected to take place in the near-term future.
We should bear in mind that socio-economic impacts of oil and gas exploration are not confined to the Dreki area in the case of Iceland. The idea of Iceland being a major service hub for oil and gas exploration and production off the shores of east-Greenland, or other areas outside of the Icelandic economic zone, is very interesting and something we follow closely with the municipalities in Iceland. Other potential hydrocarbon areas within the Icelandic economic zone are also still under consideration, for example the Gammur area, north of Tjörnes.
Ladies and gentelmen,
We live in exciting times, at least when it comes to issues of oil and gas explorations in Iceland.
Nevertheless it is important to have both feet firmly on the ground and approach the matter in a sensible and responsible manner. Various social, economical, legal and environmetal issues need to be addressed and discussed further in relation to developments in oil and gas explorations. We need to make sure that the regulatory and institutional framework is in place to take us to the next step in the development. We also need to pay close attention to the experience Norway has gained, being an active participant in this sector since the 1970s. These are all issues that I will set high on the agenda within my ministry and institutions. These are also the issues that we will discuss here today and therefore I again would like to thank the University for conducting this conference and you dear guests to take part in it. The outcome of today‘s work will for sure be of great value for us at the ministry.
Having said this I conclude my opening remarks and which you all a pleasant and fruitful day here at Bifröst University.
Thank you !