Norway Awards Dozens of Oil and Gas Drilling Permits, Expecting Record Output
Statfjord-A offshore oil platform
Norway, one of the world’s top exporters of energy, rose to the role of the EU’s leading supplier following the bloc’s massive sanctions campaign against Russia over the special op in Ukraine. However, the windfall profits fueled accusations of mercantilism from embattled European nations amid an energy crisis.Norway has awarded dozens of new offshore oil and gas exploration permits to 25 companies in the latest licensing round. Of the 47 drilling permits, 29 involve the North Sea, 16 the Norwegian Sea and two the Barents Sea in the Arctic.
"Today's award is an important contribution to ensuring that Norway remains a safe and predictable supplier of oil and gas to Europe," Minister of Petroleum and Energy Terje Aasland said, signalling the government's sustained commitment to industrial activity on the Norwegian continental shelf.
Norwegian state-controlled energy giant Equinor (formerly known as Statoil) was the single biggest recipient with stakes in 26 of the licenses, while Norwegian independent oil company Aker BP won stakes in 17 licenses.The licensing came amid expectations of record oil output voiced by the Norwegian Petroleum Directorate earlier this week. Norway’s oil production is expected to rise by 6.9 percent in 2023, while gas volumes are forecast to remain unchanged near record highs.Investment by oil and gas producers, including in exploration, is expected to rise to NOK 189 billion ($19.1 billion) this year and peak at NOK 202 billion ($20.2 billion) in 2025.Norway’s combined oil and gas output is expected to rise to 4.12 million barrels of oil equivalent per day in 2023, up from an estimated 3.99 million last year.
EconomyNorway Sees Exodus of Wealthy Tax Refugees Headed for Switzerland17 November 2022, 10:34 GMTThe production is forecast to rise further in the coming years, hitting a two-decade high of 4.3 million barrels of oil equivalent in 2025 and touching the 2004 record before starting to decline gradually, the Petroleum Directorate said.Norway, one of the world’s leaders in the export of energy resources, rose to the role of the EU’s leading supplier following the bloc’s massive sanctions campaign against Russia over its special op in Ukraine. However, the windfall profits accompanying the rise led to accusations of profiteering from fellow European nations saddled with a twin energy and cost-of-living crisis.Over the decades, however, the oil and gas revenues have laid the basis for the jumbo Petroleum Fund, the world’s largest sovereign wealth fund, currently worth $1.3 trillion in a nation of 5.4 million.
