OSLO -- Norway, the world's third-largest oil exporter, is battling to stem falling crude output as high costs, maturing resources and labor disputes threaten to undermine near- and long-term production goals.

For years, the Nordic country has been a top supplier of crude to world markets, particularly Europe and the U.S. Despite record oil prices and investment, however, government and industry officials say oil-union strikes, a tight rig market and a dwindling number of big-field discoveries may accelerate the inevitable decline in crude production and prevent the country from meeting its output targets.

OSLO, Norway, June 25 (UPI) -- Norwegian oil industry workers may be preparing to go on strike, Aftenposten reported.

Leif Harald Halvorsen of the oil industry's national association told reporters that drilling activity and exploration is being halted, and about 30 drilling operations may be affected if no solution is found. A strike among members of the oil services branch has already closed operation on two oil rigs.