Norway Rakes In Highest-Ever Oil Revenues As Prices Surge

Authored by Tsvetana Paraskova via OilPrice.com,

• Norway’s petroleum revenues reached a record-high in 2021

• Stable high production from Norway’s continental shelf is expected to continue over the next few years

• In the fourth quarter of 2021, the export value of Norway’s oil and gas exceeded $11.5 billion in each of the months, three times the export value in the same period of 2020

Norway’s petroleum revenues reached a record-high in 2021, thanks to rising commodity prices, growing global demand, and high production from 94 offshore fields, the Norwegian Petroleum Directorate (NPD) said on Thursday.

Stable high production from Norway’s continental shelf is expected to continue over the next few years, the authority said in its Shelf 2021 overview presented today.

In the fourth quarter of 2021, the export value of Norway’s oil and gas exceeded $11.5 billion (100 billion Norwegian crowns) in each of the months, three times the export value in the same period of 2020, according to the directorate’s presentation.

Last year, 20 discoveries were made on the shelf, five fields came on stream, and operators submitted eight development plans to the authorities. This year, dozens of development plans are expected to be submitted, the directorate said.

Norway’s oil and gas production was slightly higher in 2021 compared to 2020, and averaged 4 million barrels of oil equivalent per day (boepd), it added.

“Many new discoveries, as well as several new field developments in upcoming years together mean that production is expected to increase somewhat leading up to 2024,” says NPD Director general Ingrid Sølvberg.

Growth in discovered resources last year was the highest since 2014, the directorate noted.

Going forward, Norway will continue to develop its oil and gas industry under the new minority government led by Labour Party leader Jonas Gahr Stoere.

Norway will continue to grant permits for oil and gas exploration on the Norwegian shelf and will keep the current system of oil auctions, the government says.  

“We are pleased that the new government will continue the main oil and gas policies of the previous government,” Anniken Hauglie, Director General of the Norwegian Oil and Gas Association, said in October, commenting on the new government’s platform.

Access to acreage and more permits is the single most important instrument the government has to ensure not only revenues from the oil and gas industry, but also to fund the energy transition, Hauglie said.