The Role of the Hydrocarbons Regulatory Agency in Norway - Coursework Example

The Role of the Hydrocarbons Regulatory Agency in Norway Table of Contents Introduction 3 2. Thesis ment 5 3. Overview of Hydrocarbon Regulatory Agencies within Norway 5 3.1. The Norwegian Model of Hydrocarbon Administration 6 3.2. Potential benefits of Norwegian Model of Hydrocarbon Administration 6 3.3. Potential Complicacies of Norwegian Model of Hydrocarbon Administration 8 4. Analysis of the Purpose and Rationale behind the Establishment of Hydrocarbon Regulatory Agency 9 4.1. Purpose of Establishment of the Hydrocarbon Regulatory Agencies of Norway 9 4.2. Rational behind Establishment of the Hydrocarbon Regulatory Agencies of Norway 11 5. Critical Analysis of the Achievements of Hydrocarbon Regulatory Agency of Norway 13 5.1. Achievements in Context to Surpassing Environment Safeguard Challenges 13 5.2. Achievement in the Form of Functional Efficiency and Ethicality Maintenance within Workplace 13 5.3. Achievement in the Form of New Areal Explorations 14 5.4. Evaluation of the Governing Structure of Norway as a Achievement 16 5.5. Achievements in Context to Signing Up Of License Treaties with Other Nations 16 6. Factors affecting the role of Hydrocarbon regulatory Agencyin Norway 17 6.1 Environmental factor affecting the role of Hydrocarbon regulatory Agency within Norway 18 6.2. Depletion within the Natural Gas Reserves of Norway Causing Pressure upon the Agency’s Functionality 18 6.3. Technological Factors Affecting the Functionality of the Hydrocarbon Regulatory Agency 19 7. Comparison of Norway’s Hydrocarbon Regulatory Agency with Other Major Oil Manufacturing Nations 19 Conclusion 22 References 24 24 1. Introduction Hydrocarbon resources available in Norway have always been considered as a crucial contributing factor that has supported the GDP growth rate of this nation over multiple decades. The nation also appears to have witnessed multiple difficulties within the production rate of its hydrocarbon resources based on its availability. Notably, majority of the hydrocarbon excavation sites of this nation are located in the offshore location of this nation and are specifically governed by the Ministry of Petroleum and Energy (MPE). The Norwegian government also appears to have taken appropriate steps for projecting the hydrocarbon sector of this nation as a future growth perspective. This undertaken initiative also includes the structuring of appropriate strategies meant to increasing the effectiveness of oil and natural gas extraction operations within the Arctic regions1. The authoritative body that regulates the hydrocarbon production and distribution within Norway is the Storting (Parliament). This governmental institution has also been provided with the responsibility of structuring appropriate policies that are meant to ensure appropriate environmental safeguard. This governmental infrastructure found its existence during the period of 1814 and since then, it has been majorly involved in the formulation of effective regulations through, which the hydrocarbon resources of this nation can be utilized in a much effective manner. Apart from the Storting (Parliament), multiple other governmental entities also subsist within the nation, which regulates every functional aspect of the hydrocarbon sector of Norway2. Instances in this context can be provided by taking reference of the activities performed by the Ministry of Petroleum and Energy (MPE) and the Petroleum Safety Authority Norway (PSA) in context to utilizing the hydrocarbon resources of this nation in an effective manner. Thus, this discussion will majorly focus towards understanding the roles and objectives of the hydrocarbon regulatory agencies of Norway. The objective of this discussion will also include summarised facts regarding the techniques through which, the governmental structure of Norway planned to utilize its resource base with the intention of accomplishing the future growth perspectives of the nation’s economy3. Specific comparisons will also be carried out between the roles and responsibilities of the hydrocarbon regulatory agencies of Norway to that of the regulatory agencies of other specific nations. Considering the above facts, a simple understanding can be developed regarding the integrated governmental administration system implemented to manage the functional aspects of the hydrocarbon sector of this nation. This integrated administrative structure specifically includes a licensed ‘nationalised company’ that projects its involvement within all the functionalities associated with ‘commercial hydrocarbon production and distribution’4. In association, the integrated administrative body also comprises of a government ministry that structures all the policies, specifically meant for keeping a trackon the manufacturing and distribution processof hydrocarbons along with the percentage of revenue attainment. Besides, a specific ‘regulatory body’ also form a part of this integrated administrative block that projects its involvement through the delivery of necessary technical expertise to the entire procedure5. Irrespective of all these, Norway’s hydrocarbon management strategies and models have also been accepted globally. In addition, specific amount of preferences has also been provided upon the ‘separate government functional’ model that encompasses a balanced collaboration of institutional capacity and high level of competitiveness within the political structure of the nation. Failure in terms of balance attainment might therefore result in laying intensive impact on the overall functionalities of the performance of the hydrocarbon sector all over the nation. Considering these facts, the discussion will majorly focus towards analysing the separate government functionality model of Norway along with its impact on this nation’s hydrocarbon sector6. Precise focus will be laid upon the techniques through which the increasing levels of political bureaucracy prevalent within the system can be brought down to the minimal possible levels. 2. Thesis Statement The thesis statement associated with this discussion encompasses evaluation of the role and the responsibilities of the hydrocarbon regulatory agency of Norway. In association, the thesis statement will also comprise of an effective understanding that will be attained by comparing the roles and regulations of Norway’s hydrocarbon agencies against the hydrocarbon-governing agency operating within other nations. 3. Overview of Hydrocarbon Regulatory Agencies within Norway The hydrocarbon sectors of multiple nations have always encapsulated bureaucracy within its functional structure. In fact, the Norwegian administrative bodies have also sustained the trauma of inefficient productivity within their hydrocarbon sector. In this context, the Norwegian government appears to have undertaken certain specific set of regulatory and administrative measures through which, it has developed itself as a role model, for other nations in context to effective production and distribution of its hydrocarbon resources7. Since 1972, Norway appears to have implemented the ‘Norwegian Model’ within its hydrocarbon sector through which, it has casted-off the intensive political bureaucracy persistent in its hydrocarbon manufacturing and distribution sector. The prime intention of such governmental initiative has always remained towards segregating the commercial activities associated with the hydrocarbon sector and transforming it as a specific responsibility of the National Oil Company (NOC) of Norway. The details regarding this specific administrative model have been provided in the later portion of the discussion8. 3.1. The Norwegian Model of Hydrocarbon Administration This hydrocarbon sector administrative model as structured by the Norwegian government specifically focuses towards segregating the commercial activities of this sector from the policies and regulations that are structured by the ministries with the intention of increasing the efficiency of this sector. This model is also utilized as a referral entity within those specific nations where a significant variedness can be addressed within the political structure and the ‘institutional dynamics’. Throughout implementation of this model in a worldwide manner, multiple questions are also being raised regarding the specific political and institutional situations under which, the policy needs to be implemented9. 3.2. Potential benefits of Norwegian Model of Hydrocarbon Administration Considering the effectiveness associated with the ‘Norwegian Model of Hydrocarbon Administration’, multiple nations have intended towards implanting this model within the hydrocarbon sector of African nations. Justifications regarding such perception can be provided based on the fact that African soil has been a potential source for hydrocarbon reserves over multiple decades. Thus, implementation of this model within the hydrocarbon areas of African nations will eventually increase the competitiveness associated within the production and distribution of hydrocarbon products. All these chain of events, in an eventual manner, will also increase the potentiality of attaining higher profit percentage that too under limited subjection to political and trade reform bureaucracies10. The second benefit that the Norwegian government intended to attain through the implementation of this model is regarding the independence of determining appropriate policies and future targets that are specifically meant to increase the efficiency levels of its hydrocarbon sector. The similar benefit might also be endured upon Nigeria’s hydrocarbon sector in case the ‘Norwegian Model of Hydrocarbon Administration’ is implemented in an effective manner11. Associatively, the unethical opportunities utilised by the organizations involved in the production and distribution of hydrocarbon will minimize by considerable percentages due to the continued supervisions of the government agencies involved in the integrated administrative procedure. In fact, a precise amount of ethical conduct will be maintained within the competition levels and attainment procedures of hydrocarbon resources. The necessity of this ethical conduct can be felt largely within the international hydrocarbon markets, which are often subjected to a cutthroat level of competition due to the existence of greater number of international players. Likewise, the fourth benefit can be elaborated in relation to fostering of values and innovativeness within the functionalities of the integrated organizations, which in turn also forms a significant role of the ‘hydrocarbon regulatory agencies’ within Norway12. 3.3. Potential Complicacies of Norwegian Model of Hydrocarbon Administration Norway is accounted as one of the leading producers and consumers of energy among all other global nations. It can also be understood that in order to maintain its functionality and global stance, Norway also has to increase its production of energy generating sources by drastic amounts13. Considering all these aspects, it is worth mentioning that Norway needs to establish a systematic pattern of regulation within the governmental departments that are involved in the management and development of the hydrocarbon sectors of this nation14. Contextually, subsequent introduction and implementation of the ‘Norwegian Model of Hydrocarbon Administration’ turned out to be an effective answer against such necessities. However, this model has multiple limitations as well that can be specifically addressed within the areas of its implementation. For instance, the implementation of this model within other nations might only turn out to be successful in case the country exhibits a specific level of balance between its ‘institutional dynamics’ and ‘political structure’. Certain associated facts in this context have also been mentioned in the above discussions15. Apart from the above aspects, subjection to the responsibilities associated with excessive exploitation of hydrocarbon resources also gets segregated within varied governmental and private organizations involved in the process of transferring the crude hydrocarbon products from source to the destinations. For instance, oil spill during transfer of the hydrocarbon products can be point out as the responsibility of the Norwegian Coastal Administration (NCA) whereas if the spill appears to have from the offshore posts then it is accounted as the responsibility of the offshore operators. Considering these aspects, one can perceive about the possible drawbacks associated with the implementation of the Norwegian Model of Hydrocarbon Administration. Justification regarding this perception can be provided by taking consideration of the complexities involved in the implementation of this model16. 4. Analysis of the Purpose and Rationale behind the Establishment of Hydrocarbon Regulatory Agency The purpose of attaining a systematic management of the hydrocarbon sector of Norway is the main rationale that led to the establishment of an integrated form of hydrocarbon regulatory agency within this nation. The detailed elaborations of both these elements have been provided in the sub-sections mentioned below. 4.1. Purpose of Establishment of the Hydrocarbon Regulatory Agencies of Norway Being a large nation with intensive levels of energy consumption, the Norway government felt the necessity of establishing an effective system that could manage every specific functionality and growth related aspects of its hydrocarbon sector. Moreover, being massively reliant upon its hydrocarbon sector also increased the chances of extensive bureaucratic interference within its regulatory structure. Considering these aspects, the Norwegian government felt the necessity of bringing about segregation within its regulatory structure and thus, designed the Norwegian Model. The initial purpose that was comprehended through the effective implementation of this model was regarding meeting up to the expected rise in oil and natural gas with the intention of mitigating the excessive energy requirements17. The hydrocarbon reform agency of Norway fulfilled its second purpose of improvising the efficiency and future prospects of its hydrocarbon sector with the prime intention of designing a contingency plan for fulfilling the future energy needs. Through the implementation of the Norwegian Model, the hydrocarbon reform agency of Norway identified an opportunity of structuring specific reforms and regulatory policies associated with the consumption and distribution of its hydrocarbon products. Justification regarding such aspects can be provided based upon the fact that the implementation of such policies and regulatory measures subsequently helped in minimizing the levels of unethical conduct and bureaucracy that prevailed within the previous regulatory norms of the nation’s governmental structure18. In a cause and effect relationship, the benefits attained from the effective functionality and Norwegian Model the implementation of the same by the hydrocarbon reform agency of Norway eventually attracted the interest levels of multiple other nations those were involved in the generation and distribution of hydrocarbon related products within natural resource rich nations in Africa. This can also be categorised as the third purpose to have resulted in the establishment of the hydrocarbon reform agency within Norway. Attainment of appreciable amount of global reputation was the fourth most crucial purpose that eventually resulted in the establishment of the hydrocarbon regulatory agency within Norway19. Moreover, based on the act that Norway specifically relies upon its hydrocarbon resources, a perception can be made regarding the occurrence of multiple associated environmental issues that emerges as result of the continued functionalities of power generation industries. Segregation of the management responsibilities within different departments of the hydrocarbon regulatory agencies eventually provided a specific scope through which, strategies associated with environmental safeguard can be structured in an effective manner20. 4.2. Rational behind Establishment of the Hydrocarbon Regulatory Agencies of Norway In alignment with the above aspects, the effective elements associated with the functionality of the hydrocarbon regulatory agency of Norway can be considered as an appropriate rationale behind establishment of this agency. Likewise, structuring of effective reforms for tacking the increasing environmental concerns can also be considered as an effective rationale behind establishment of the hydrocarbon regulatory agency within Norway. Justification in this context can be provided by taking consideration of the fact that under situations of inappropriate tackling of such environmental concerns, multiple sustainability risks might evolve upon the continued functionality of the hydrocarbon regulatory agency of Norway. Multiple other associate rationales can also be identified based upon which, the establishment of the hydrocarbon regulatory agency of Norway can be stated as beneficial21. The fact that this nation also relies upon its import of large percentage of hydrocarbon resources also projects itself as an appropriate rationale that fortifies the existence of the hydrocarbon regulatory agency in Norway. Within the functionality chain, the hydrocarbon regulatory agency of Norway projected its efficiency of structuring appropriate import norms. Expertise of this agency in context to mitigating the possible security threats upon its offshore hydrocarbon production units can also be considered as a possible rationale that justifies the establishment of the hydrocarbon regulatory agency in Norway. Evidences regarding this can be attained through the minimisation of accidental events associated with oil spills in the country. Alongside, the improvement within the profitability rates because of the strategic functionalities of this organization can also be categorised as a potential rationale supporting the cause of establishment of the hydrocarbon regulatory agency in Norway22. Furthermore, strategic management techniques implemented by the government of Norway in context to surpassing the existing limits oil sector governing reforms and structure can also be considered as a convincing rationale that holds the testament behind establishment of the hydrocarbon regulatory agency in Norway. This profitability aspect eventually encompasses the economic factors that hold high vitality in the present competitive scenario. This associated chain of events also project itself as potential rationale in alignment with the provided context. Moreover, the regulatory regimens undertaken by the state authorities also hold high creditability in context to monitoring the increased performance and ensuring the development of the workforce associated with the offshore hydrocarbon extraction projects. It can also be categorised as a crucial rationale that supports the establishment of hydrocarbon regulatory agency within Norway. Specific operations related to the commencement of offshore drilling and extraction further required the continued updating of the regulatory reforms and policy regimens that have been structured by the state authorities. In this context, the Norwegian Model can be categorised as a reference model based on the fact that the structured policies and techniques within this model are subjected to periodic changes with the intention of remaining aligned with the changing trend of the global hydrocarbon sector23. 5. Critical Analysis of the Achievements of Hydrocarbon Regulatory Agency of Norway 5.1. Achievements in Context to Surpassing Environment Safeguard Challenges Norway, being one of the major producers of oil and natural gas, has been subjected to multiple allegations regarding deterioration of the surrounding environment in consequence to its continued functionality. In this context, surviving such allegations and exploiting its available resources to the fullest, that too under strict environmental regulations, can be categorised as a major achievement of the Hydrocarbon Regulatory Agency in Norway. The hydrocarbon authoritative bodies in Norway also rely upon the utilization of the Norwegian Model as an appropriate tool with the prime intention of refining the system efficiency. Understanding the benefits associated with this tool, it can also be categorised as a major achievement of the Hydrocarbon Regulatory Agency in Norway24. 5.2. Achievement in the Form of Functional Efficiency and Ethicality Maintenance within Workplace In alignment, the Hydrocarbon Regulatory Board in Norway, through its continued functionality has also brought about diversification and liberalization within its oil-producing sector. Through such initiatives, hydrocarbon regulatory agency has widespread benefits towards the economic development of Norway. Considering these aspects, it can also be categorised as a credential achievement of the hydrocarbon regulatory board in Norway25. Another specific functional achievement of the hydrocarbon regulatory agency of this nation can be addressed within its functionality pattern. Specific evidence in this context can be provided based on the percentage of hydrocarbon industrial share transferred by the government to its NOC (Statoil) with the intention of increasing the competitiveness within this business sector. As a guaranteed measure, the three distinct departments of the government namely Energy & Environment Parliament Standing Committee (EESC), Ministry of Petroleum, Energy, and NPD have integrated together as a regulative authority monitoring all the functional aspects of the Statoil. Minimization of the unethical practices and facilitation of equality within the resource sharing procedures attained by this integration can be categorised as a major achievement of the hydrocarbon regulatory agencies in Norway26. 5.3. Achievement in the Form of New Areal Explorations With the increase in the technology availability, the hydrocarbon regulatory agency in Norway has also projected its expertise in context to indentifying and extracting hydrocarbon resources from multiple environmentally harsh locations. Evidence regarding this achievement can be witnessed within the oil extraction operations carried by Norway in the Arctic regions where the environment remains unfavourable for human survival throughout the year27. Source 28 Specific evidence of the achievements attained by the Norway’s hydrocarbon regulatory agency during its functionality within the Arctic areas has been elaborated through the graphical representation above. Clearly, one can understand the level of flexibility within its fiscal criteria and resource availability. Further evaluation of the provided graphical representation also illustrates about the favourability that the hydrocarbon regulatory agency in Norway encompasses when it comes to market accessibility. However, due to the high level of taxation imposed upon Norway’s hydrocarbon business, the associated agency fails to meet the necessary infrastructure expansion that will be required for enhancing this sector’s capacity. In an associated manner, it also fails to generate appropriate material value. Irrespective of such failures, the nation still manages to fulfil its energy requirements29. 5.4. Evaluation of the Governing Structure of Norway as a Achievement In association with the above-discussed aspects, the constitutional compliances within this nation, provides full authority to the King in context to planning and managing every functional element of the hydrocarbon resources found within the nation. In alignment, the Storting (Parliament) has only been provided with the authority of making judiciary decisions related to resource management. From a logical perspective, the governmental and regulatory structures within Norway intent to minimize the bureaucracy level within every functional aspect of the hydrocarbon industry30. Moreover, such governmental structure also contributes towards projecting a better picture of the hydrocarbon regulatory agency functional within Norway in context to maintenance of environmental, employee and social welfare within this nation31. Likewise, issuing of the business permits to the private hydrocarbon production and distribution industries that are functional within Norway has been another credential achievement of its hydrocarbon regulatory agency. Justification regarding such aspect can be provided based on the fact that through appropriate licensing of the private busineses, the hydrocarbon regulatory agency, such as Ministry of Petroleum & Energy, intends towards keeping a close vigilance upon the fictional patterns of the privately funded hydrocarbon organizations32. 5.5. Achievements in Context to Signing Up Of License Treaties with Other Nations Hydrocarbons are non-renewable sources of energy and are unevenly distributed within distant geographical areas. This factor makes it highly difficult for nations, such as Norway, which is largely dependent on hydrocarbon to look out for new sources of energy within the territories of other nations. Considering these aspects, it is worth mentioning that establishment of hydrocarbon business treaty between Norway and Iceland has a major achievement for the hydrocarbon regulatory agency. The intention behind this treaty is to ensure the facilitation of equal profitability to both the nations33. Structuring of appropriate tax rates for intra-organizations hydrocarbon supply and transfer pricing has also been one of the major achievements for the hydrocarbon regulatory agency of Norway. Justification to this statement can be provided based on the fact that over multiple decades, oil and natural gas industry of Norway has majorly contributed to its export price. Thus, through the structuring of appropriate taxation policies and rates, the hydrocarbon regulatory agency in Norway has ensured its effectiveness in context to attaining necessary amount of external financial support in the current level of market competition34. 6. Factors affecting the role of Hydrocarbon regulatory Agencyin Norway The changing pace of international oil markets has been imparting tremendous amount of pressure on the overall performance and profitability of the hydrocarbon regulatory agency in Norway. The oil prices over the past few years have risen by drastic levels due to the sudden hydrocarbon scarcity in the preliminary stages of 2002. However, this situation turned out to be highly beneficial for OCED nations that also comprises of Norway and thus, can be categorised as an influential factor. 6.1 Environmental factor affecting the role of Hydrocarbon regulatory Agency within Norway If seen from an environmental perspective, the increased rate of hydrocarbon excavation over the past few years have laid significant amount of negative impacts on the global environment. Multiple occurrences of oil spills have also been addressed by the hydrocarbon regularly authority of Norway that has brought down the sustainability of multiple oil production and distribution organizations within this nation at risk35. 6.2. Depletion within the Natural Gas Reserves of Norway Causing Pressure upon the Agency’s Functionality One more influential factor that could affect the functionality of the hydrocarbon regulatory agency within Norway is related to its natural gas import. Evidence regarding this statement can be found within the historical chain of events. For instance, the recession period of 2009 did not have massive impact on the economic stability of Norway due to its high production capabilities of oil products and excessive reliance upon the natural gas imports. However, the situation is ought to change based on the fact that the overall accumulation of natural gas reserves have reached the verge of getting exhausted. This chain of events might eventually result in bringing about considerable level of change within the regulatory norms as structured by the hydrocarbon regulatory agency in Norway36. 6.3. Technological Factors Affecting the Functionality of the Hydrocarbon Regulatory Agency The increasing demands for oil and natural gas have transformed the domestic hydrocarbon industry of Norway into an open market. It has also become vital for Norway’s hydrocarbon regulatory agency to find new reserves of hydrocarbon deposits. In alignment to this context, the arctic areas might turn out to be effective options. However, hydrocarbon extraction operations within such environmentally harsh areas often require appropriate technological support that might eventually rest upon increasing project cost. Thus, it can also be categorised as a crucial factor that has the potential of laying tremendous amount of impacts on the overall functionalities of the hydrocarbon regulatory agency of Norway. In addition to all these, the hydrocarbon regulatory agency of Norway also appears to be much conscious regarding the future chain of events. Thus, multiple steps have been undertaken for minimizing the levels of oil and natural gas reserves to the lowest possible levels. This decision undertaken by the regulatory agency of Norway embraces functionality and the survival factor of multiple other oil procuring organizations within Norway37. 7. Comparison of Norway’s Hydrocarbon Regulatory Agency with Other Major Oil Manufacturing Nations In order to compare and contrast Norway’s hydrocarbon regulatory agency with other major oil manufacturing nations, significant similarity can be observed within the major economic reliance of Norway and Russian upon their hydrocarbon sector. However, a high level of differences can be ascertained within their hydrocarbon regulatory framework. For instance, the regulatory areas of Russia prefer the implementation of licensing system within their hydrocarbon production and distribution sector. The license is issued based on the confirmations obtained from multiple governmental and environment related departments. Unlike Norway, Russia does not intend towards segregating its regulatory and policy structuring responsibilities within the different parts of its regulating authority. Rather, it intends towards implementing federal governance upon all the functional aspects of its hydrocarbon sector38. In addition, both the nations follow similar kind of measures, particularly in relation to production, and distribution of hydrocarbon products under the governance of a centralised system. For instance, the Unified Gas Supply System (UGSS) within Russian handles all the functionalities associated with the production and distribution of oil and natural gas products. This finds high similarity with the Statoil of Norway39. A similar kind of hydrocarbon sector governance trait can be witnessed within Nigeria as well. However, the compliance guidelines associated with governing structure of this nation appears to be highly traditional and thus often fails to fulfil the energy requirement and contribute towards economic growth of Nigeria. The hydrocarbon sector of this nation in the present scenario is governed by the ‘Nigeria’s dominant hydrocarbon regulatory body (NNPC)’ which is a state opened enterprise. Considering these aspects, a similarity pattern can be attained within the hydrocarbon sector governance structure of both Norway and Nigeria. However, the difference only lies within the advancements of the development policies implemented by both Norway as well as Nigeria. In alignment, a vast comparison can also be attained within the political stability and facility capacity of Nigeria in comparison to that of Norway. Justification in this context can be provided by taking consideration of the initiatives being undertaken by the Nigerian government towards implementation of ‘Norwegian Model’ of hydrocarbon resource administration for which a precise level of stability within the political and facility dynamic will be needed. Unlike Norway, the political structure of Nigeria is occupied with large volume of bureaucratic events and unethical practices that eventually minimizes the ability of structuring and implementing effective policies meant to develop the nation’s hydrocarbon business sector40. Apart from the above stated comparative facts, the hydrocarbon regulatory structure of Iraq poses much uniqueness and diversity in comparison to that of the hydrocarbon regulatory norms of Norway. Within Iraq, the government mostly regulated and administers all the business related aspects associated with the hydrocarbon operations and thus fails to exhibit the necessary competency that can be attained in case if the regulatory norms and responsibilities gets segregated within multiple agencies. Irrespective of these challenges, Iraq has still maintained a considerable level of dominance over the global hydrocarbon market. Multiple other differential aspects can also be attained by comparing the ethical levels within the political and governance framework of the both Norway and Iraq. For instance, since the entire hydrocarbon sector of Iraq is regulated by the nation’s government, a bound factor will emerge regarding its subjection to bureaucratic outfits. On the contrary, the hydrocarbon regulatory agency in Norway has been designed in such a manner that the ministry and the technological partners will have limited jurisdiction upon the production and distribution functionalities of hydrocarbon products carried out by Statoil. Thus, the chances of occurrence of voluminous bureaucratic events are lower in this case of Norway41. Conclusion The overall discussion has been highly informative in context to elaborating the role and responsibilities of hydrocarbon regulatory agency in Norway. Throughout the discussion multiple facts have been determined that illustrates structural patterns of Norway’s hydrocarbon regulatory agency and the possible ways through which they implement control measures and policies. Considerable amount of focus has also been provided upon their intentions boosting up the performance levels of their hydrocarbon sector as an economic support for the future. At the same time, cased on the comparison of Norway’s hydrocarbon regulatory agency with other major oil manufacturing nations, a clear understanding can be attained regard the similarities and differences within the regulatory policies of Norway against the hydrocarbon governing structures of other prominent nations. The discussion also encompasses multiple facts elaborating the possible challenges that the hydrocarbon regulatory agency in Norway is yet to face in the future times based upon the changing patterns of energy and hydrocarbon sector in the global market. By taking consideration of these facts, one can perceive about the necessity of Norway in context to developing alternative energy sources with the intention of sufficing its growing energy requirements. Facts mentioned in the above section also elaborates about the economic obligations that this nation is yet to face if the government comes up with a sudden plan of cutting down the annual production of oil by considerable amounts. An appropriate understanding can also be attained regarding the level of negative impact such decision upon the sustainability of other business sectors. Facts identified in this discussion also demonstrate comparative differences that have been identified within the regulatory structure of Norway against multiple other nations such as Iraq, Nigeria and Russia. Significant emphasis upon prevalence of bureaucracy within the governmental regulatory bodies has also been pointed out as a major factor that restricts the optimal performance achievement of the hydrocarbon sector within multiple nations. Appropriate evaluation of the data mentioned in the evaluative reports of Norway’s hydrocarbon sector also illustrated the implementation of an innovative ‘Norwegian Model’ that requires the systematic synchronization between the facility dynamics and the political stability. Considering all these aspects, it is worth mentioning that the hydrocarbon regulatory agency in Norway does play a pivotal role in context to safeguarding the economic interest of the nation and pushing the limits of the hydrocarbon sector within this nation. The data mentioned within the above discussion also illustrates about the judiciary limitations that the different elements of the hydrocarbon regulatory agency in Norway possess. The prime intention of such regulatory agency has always been focussed upon developing the hydrocarbon sector of the nation and to ensure control measures on the production and the distribution of the same. Associated intentions of the agency in Norway also include focusing towards alternative sources of energy through which the nation could survive the increasing competitiveness in the global market. Considering all these aspect, it can be asserted that the role played by the hydrocarbon regulatory agency in Norway is pivotal in meeting the energy requirements as well as exerting considerable control over the production and distribution of the hydrocarbon products. References Austvik, O. G, ‘Exploration and exploitation of hydrocarbons in the Gulf of St. Lawrence Coastal Communities Concerns’, [2011] The Norwegian Petroleum Experience < http://www.muniles.ca/images/Upload/5_forum_sur_les_hydrocarbures/forum_contenu_conferences/anglais/5-_ole_gunnar_-_norway-experience-english.pdf> accessed 10 December 2014. Barnato, K, ‘Oil Poses ‘Big Challenges’ For Norway: Central Bank Governor’, [2014] accessed 10 December 2014. Dagg, J. Holroyd, P. Lemphers, N. 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