Project abstractThe project will focus on topical issues in the petroleum industry, drawing theories and methods of economics, finance, accounting and management. We will provide input to topical strategic issues in the industry, but also to detailed dec isions pertaining to regulation, taxation, commodity trading, and investment decisions. The main topics of the project are as follows. In the first part of the project we analyse current issues in taxation and regulation on the Norwegian Continental Shel f (NCS). We will contribute to enhanced understanding of the significance of various accounting figures and operational indicators for valuation of oil companies, and how valuation relations affect company behaviour, OECD oil production, and OPEC behaviou r. We will analyse the effects of recent modifications to rig and oil service contracts, e.g., new incentive elements, and evaluate drivers and obstacles to a broad introduction of integrated operations on the NCS. In the second part of the project we an alyse the implications of future environmental regulations for the value of the Norwegian petroleum resources. By using theoretical and empiric analyses we will estimate the consequences of international climate and energy policy for the oil and gas marke ts. We further analyse how agreements on global warming and climate policy may affect OPEC stability and price-setting behaviour, as well as the development of alternative fuel supply. We will also study how international gas markets may be affected by Ru ssian gas extraction, the possibility of cartelisation of gas markets and the role of new technologies like LNG and Gas-to-Liquids (GTL). Fresh data from European gas hubs will be analysed, and optimal strategies for short term trading and hedging are out lined. European industry demand for energy will be analysed, and we will study the development of oil consumption in China.