Norway manages its significant hydrocarbon resources and revenues in a sustainable way, and remains a reliable supplier of oil and gas, but Norway's government should prepare for a future with lower oil and gas revenues.

The recommendations were made in the International Energy Agency's latest assessment of Norway's energy policies.

"As one of the world's largest energy exporters, Norway plays a leading role in advancing global energy security," said IEA Deputy Executive Director Paul Simons, speaking at the launch of the report. "At the same time, Norway is fully committed to environmental sustainability."

Norway's remaining oil and gas resources are considerable. Only a third of the country's estimated discovered and undiscovered gas resources, and half of its oil resources, have been produced. While reducing the global economy's carbon emissions remains a priority worldwide, the IEA expects that substantial volumes of oil and gas will still be needed for years to come. As such, the report welcomes the government's efforts to encourage increases in Norway's production. The IEA's analysis also recognizes that the government takes into account environmental considerations in managing its oil and gas resources.

The report also highlights Norway's large hydropower generation as another valuable energy asset particularly at a time when European electricity markets are integrating and variable renewable energy generation is growing. More cross-border connections are coming online and will help realise the full potential of hydropower for balancing variations in demand and supply in the regional market.