Oil for Development Annual report 2009

Preface:
The Oil for Development
Annual Report 2009

In 2009, climate change was widely recognized as the most serious environmental
problem facing the globe. Still, fossil fuels remain our most important source
of energy. In order to prevent a rise in global temperatures of more than two
degrees Celsius, we have to reduce greenhouse gas emissions. This can only be
achieved through cleaner extraction of energy from fossil fuels, together with
increased deployment of renewable sources of energy.

Energy is vital for developing countries in their fight against poverty. At the same
time, the planet will not withstand poor countries copying the energy history of
the developed world. This is a challenge in all energy-related development policy.
Norway has expertise in the management of both fossil energy and renewable
energy sources. We are thus well positioned to address these dilemmas when we
provide assistance in the energy field.

Energy has been at the core of Norway’s development assistance policy for
many years. This has resulted in the Clean Energy for Development Initiative and
the Oil for Development Initiative. Both initiatives can help to increase economic
growth and prosperity in some of the poorest countries in the world.

The current annual report presents some of the activities and key achievements
of the Oil for Development Initiative in 2009. Through this initiative we assist
developing countries, at their request, in their efforts to manage petroleum
resources. The main aim is to generate economic growth and promote welfare
for the whole population in an environmentally sustainable way. Demand for
Norwegian assistance with petroleum sector management is growing rapidly. We
now cooperate with more than 24 countries, mostly bilaterally, but also through
regional and multilateral initiatives. Each country has its own particular challenges
and there are no “quick fixes”.

Our approach to petroleum sector management is broad, as we also include environmental
and revenue management. This is necessary if oil is to be a blessing
and not a curse. We mainly build capacity within government institutions, because
a competent public sector is crucial for ensuring good governance of the
petroleum sector. However, we also support civil society and the media. These
must be strong enough to monitor their governments.

Time, patience and many factors beyond the Oil for Development Initiative’s
control are required to turn oil in the ground into broad-based improvements in
livelihoods. This report shows how the Oil for Development Initiative makes use
of Norwegian and other relevant experience and expertise to contribute to this
important process in our partner countries.

E rik Solheim
M inister of the Environment and International Development
Oslo, May 2010