According to Oil and Gas Journal (OGJ), the five countries in the North Sea region had 13.4 billion barrels of proven oil reserves in January 2006. Norway contains the bulk of these reserves (57 percent), followed by the UK (30 percent). Norway and the UK are the largest producers, though Denmark is also a net exporter.

During 2006, crude oil and condensate production in the North Sea reached an estimated 4.4 million barrels per day (bbl/d), down from 4.7 million bbl/d in 2005. Current production levels are about one-quarter lower than the peak in 1999. The North Sea is considered a mature region, and oil production is clearly in long-term decline. Norway represents the largest share of current North Sea crude oil and condensate production with 57 percent (2.5 million bbl/d). The UK controls the second-largest share of production (1.5 million bbl/d, 34 percent), Denmark (352,000 bbl/d, 8 percent), the Netherlands (23,000 bbl/d, 1 percent), and Germany (27,000 bbl/d, 1 percent).

Because five countries control different parts of the North Sea, transnational cooperation is necessary for both the development of crude oil deposits straddling maritime boundaries. In April 2005, Norway and the UK signed a bilateral treaty detailing the handling of such resources. The treaty was the first step toward a general framework for inter-boundary oil projects, as previous projects have been governed by separate treaties and negotiations. Talisman Energy planned to bring the Enoch and Blane fields onstream by the end of 2006, which straddle the border between Norway and the UK.

There is a single international crude oil pipeline in the North Sea, the 270-mile Norpipe operated by ConocoPhillips. The system has a capacity of 810,000 bbl/d and connects Norway’s Ekofisk field with the crude oil terminal and refinery at Teesside, England.

Norway and the United Kingdom are significant oil exporters, though Denmark is also a small net exporter. Because Norway only consumes a relatively small amount of oil each year, the country is able to export the vast majority of its oil production. According to Statistics Norway, the country exported 2.2 million bbl/d of crude oil and petroleum products in 2005. The largest single recipient of Norway's exports in 2005 was the United Kingdom, which imported 808,000 bbl/d from Norway, or 36 percent of Norway's total exports. Other significant destinations included the Netherlands, France, and the United States.

The UK has been a net exporter of crude oil since 1981, though the country does import sizable volumes of crude oil from Norway. According to the British Department of Trade and Industry (DTI), the largest destinations of crude oil exports in 2004 were the United States (28 percent), the Netherlands (21 percent), Germany (17 percent), and France (14 percent). Much of the crude oil exported to the Netherlands is not actually consumed there, but rather sold at the Rotterdam spot market. In 2005, the UK exported 219,000 bbl/d of crude oil and 167,000 bbl/d of petroleum products to the U.S., contributing 2.2 percent and 4.8 percent to total U.S. crude oil and petroleum product imports, respectively.