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31 July 2023

Norway's July Oil and Gas Production Reaches 22.8 MMcfpd

Norway's hydrocarbon production reached a significant milestone in July 2023, with an average of 22.8 million cubic feet per day (MMcfpd). According to the Norwegian Petroleum Directorate (NPD), this robust performance contributes to a notable increase in production for the year.

Compared to the previous month, July's output witnessed a substantial rise of 4.1 MMcfpd. Additionally, it marked a 1.4 MMcfpd increase compared to the same month in 2022, as highlighted in a press release by the NPD.

For the entire year thus far, the total volume reflects a remarkable growth of 70.6 MMcf compared to the corresponding period last year.

In terms of barrels, the daily production in the past month averaged 2.036 million barrels, encompassing oil, natural gas liquids, and condensate.

The NPD reported, "Total gas sales were 10.0 billion Sm3 (GSm3), which is 2.5 (GSm3) more than the previous month."

The regulator had previously noted "high" activity levels in the country's oil and gas sector in a report on June 30. Seven out of 18 exploration wells drilled during that period resulted in discoveries, with a combined estimated equivalent of between 9 and 32 million Sm3 (standard cubic meters) of oil.

The NPD emphasized that this continued high activity level strengthens Norway's position as a reliable and stable energy supplier to Europe, particularly in the field of natural gas.

Norway's prominence as a natural gas supplier to Europe increased in recent years, surpassing Russia in 2022. Despite trade sanctions and geopolitical tensions, Norway accounted for a substantial share of Europe's natural gas imports, making it a vital energy source for the region.

Last year, Norway achieved record petroleum revenue, reaching $137.6 billion (NOK 1.457 trillion), a historic high. These revenues, derived from taxes and state ownership in oil and gas fields, significantly contributed to the country's economic prosperity.

Majority state-owned Equinor ASA also reported substantial net income for 2022, primarily attributed to increased gas production and high gas prices. These economic achievements highlight the significance of Norway's energy sector on both domestic and international fronts.

International crude benchmark Brent and global natural gas prices experienced notable increases, further emphasizing the influential role Norway plays in the energy market.