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Embassy of the United States of America Oslo Home US

VIEWS: 6 PAGES: 12

									                              Doing Business with Norway




Embassy of the United States of America – Oslo –Norway     Vidar Keyn
                                      Did you know that Norway…




• Covers 1,100 miles from south to north – same distance as from Oslo to Rome
  or New York to Miami?
• Encourages its citizens to submit income tax returns by cell phone?
• Ranked 1st on UN’s index of best countries to live in for 5 years in a row?
• Is the world’s 3rd largest exporter of both oil and gas?
• Produces 99% of its electricity based on renewable hydropower?
• Has a GDP per capita higher than the United States?
• Is extremely ICT savvy – that 85% of 10 year olds have cell phones?
• Was chosen by Google for location of its latest R&D facility?
• Has the largest investment fund in Europe, valued at $300 billion – same as GDP?
• Is currently building Europe’s first export terminal for LNG?




       Embassy of the United States of America – Oslo –Norway                        Vidar Keyn
                                                              Norway
                                                      Major Economic Sectors




•   Energy - Oil/Gas/Renewables                                   US - Norway Trade
•   ICT
•   Shipping/Marine Technology                                    • $10.5 billion total.
•   Fisheries/Aquaculture
•   Metals
                                                                  • $4.5 billion in petroleum from
                                                                    Norway.
•   Pulp and Paper
•   Defense and Aerospace                                         • $2 billion in machinery, ICT and
•   Environmental Technologies                                      transportation equipment from the
•   Travel and Tourism                                              US.




        Embassy of the United States of America – Oslo –Norway                               Vidar Keyn
                                                                   Norway
                                                               Business Climate
• World-class telecommunication infrastructure and very high ICT literacy.
• Extensive transportation network by air, sea and roads – roads in some rural areas
  can be a challenge.
• Modern logistics and distribution centers.
• Predictability and stability.
• High ethical focus.
• Traditionally active state sector – strong labor movement.
• High taxes – direct and indirect; marginal rates of about 50%, Value Added Tax of
  25%, high fuel and auto taxes, and high “sin” taxes.
• Relatively low costs for highly skilled engineers/scientists.
• High labor costs/short working hours/long vacations.

Selling Factors
• Norwegian companies are generally willing to pay for quality.
• To Norwegians “new” is not necessarily better.
• Hard selling techniques will get you nowhere in Norway.
• Norwegians are typically not “tactical” negotiators; if they say your product is too
  expensive, they probably mean it.



      Embassy of the United States of America – Oslo –Norway                         Vidar Keyn
                                                                        Norway
                                                                  Oil and Gas Sector




Major Annual Investments
• Norway’s most significant industry.
• Projected 2007 investments: $17 billion.
• 3 million barrels produced every day.
• Production only offshore.
• Statoil and Hydro are major customers and will merge in 2007; Statoil
  places orders for $5-6 billion annually from local suppliers.
• United States holds strong position. Oil companies include ConocoPhillips,
  ExxonMobil, Chevron, Marathon, and Amerada Hess.




         Embassy of the United States of America – Oslo –Norway                        Vidar Keyn
                                                        Oil and Gas
                                                   Equipment and Services




Best Prospects – Technology in Demand
• Advanced subsea and deepwater technology for extreme arctic waters…
• CO2 handling - carbon capture and storage.
• LNG value chain technology.
• E-field – technology facilitating remote/onshore, real-time operations.
• Marginal field technology, enhanced recovery, tail-end production.
• High and growing focus on new and advanced environmental technologies.
• Technology facilitating cost reductions of any kind.
• Decommissioning/abandonment technology – alternative use of installations.



         Embassy of the United States of America – Oslo –Norway                Vidar Keyn
                                                                     Renewable Energy
                                                                     Green Technologies




Best Prospects – Technology in Demand

•   C02 capture and storage.
•   Wind power.
•   Hydropower.
•   Solar power.
•   District heating.
•   Geothermal energy.
•   Waste incineration technologies.
•   Tidal power and wave energy.
•   Electric vehicles – battery technology.
•   Alternative fuel and fuel efficiency – vehicles/ships.



            Embassy of the United States of America – Oslo –Norway                        Vidar Keyn
                                      Innovative ICT Industry
                                    Seeks Sophisticated Solutions

• Large public ICT contracts: new national pension reform,
  bank ID/biometric ID cards, citizen portals.

• Applications for energy sector: real-time remote
  operations for extreme conditions, advanced seismic data
  visualization software, security systems.

• Applications for healthcare technologies: telemedicine,
  electronic patient records, data handling/storage, logistics
  software.

• IP technology, Internet and wireless services and content,
  non-voice services, advanced security measures.

• Shipbuilding and offshore design, simulation and
  construction solutions, logistics software.

• Enterprise Resource Planning software for SMEs.




      Embassy of the United States of America – Oslo –Norway     Vidar Keyn
                                                  Healthcare Technologies
                                                       Biotechnology

• 85 state-owned hospitals managed by four
  regional health enterprises.
• Current investment plans valued at $3 billion.
• $250 million annually in medical equipment
  procurements.
• Telemedicine/e-medicine growing in
  importance.
• Reduction of occupancy rates – cutting overall
  costs.

Biotech
• Cancer research.
• Marine biotech/Aquaculture.
• Bioprospecting.
• Biobanks.
• Animal biotech.


      Embassy of the United States of America – Oslo –Norway                Vidar Keyn
                                                Competitive Shipping and
                                                   Offshore Cluster




•   Norwegian fleet 5th largest in the world.
•   Fleet of mobile offshore rigs 2nd largest, after the United States.
•   15% of world fleet for offshore services.
•   Two of the three largest ship brokerages.
•   10% of world’s maritime banking services.
•   Underwriters account for 20% of insurance.
•   Norwegian classification companies classify 15% of world tonnage.
•   Oslo Stock Exchange regarded as the world’s largest shipping exchange.




          Embassy of the United States of America – Oslo –Norway             Vidar Keyn
                                         USA Pavilions at Trade Shows



• Nor-Shipping 2007
  Oslo – June 12-15, 2007
  (Shipping and Maritime)


• Reiseliv 2008
  Oslo – Janurary 10-13, 2008
  (Travel and Tourism)


• Offshore Northern Seas 2008
  Stavanger – August 26-29, 2008
  (Oil and Gas)




           Embassy of the United States of America – Oslo –Norway   Vidar Keyn
                                                                  Following Up



Please contact us to take advantage of U.S. and Norwegian trade and
investment opportunities.

The American Embassy in Oslo’s Web site is “http://norway.usembassy.gov”;
the Commercial Section’s is “www.buyusa.gov/norway.”

Thank you!




         Embassy of the United States of America – Oslo –Norway                  Vidar Keyn

								
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