NOK 218 billion in net revenue from the petroleum industry in 2015

“The petroleum industry generates enormous revenues for Norway, even given current oil price levels. The oil and gas industry is the most important source of funding for the welfare state, and will remain Norway’s largest and most important industry in terms of both jobs and revenue for the foreseeable future,” says Minister of Petroleum and Energy Tord Lien.

The revenue forecast is just over 2 per cent lower than the forecast in the Revised National Budget 2015, primarily due to lower anticipated oil prices. The oil and gas prices applied in the estimate for 2016 are NOK 440 per barrel of oil and NOK 2.09 per standard cubic metre of gas.

Petroleum industry investment, including in exploration, is expected to total approximately NOK 184 billion in 2015. The corresponding figure for 2016 is NOK 167 billion.

“Many supplier companies around Norway are facing difficult conditions, having to adapt their businesses to reduced global oil-company demand. The industry is taking on the cost challenges that have arisen. Nevertheless, from a historical perspective, investment levels on the Norwegian continental shelf remain high. The development of the gigantic Sverdrup field will contribute significantly to the preservation of jobs in many businesses,” says Lien.

The Norwegian continental shelf continues to offer extensive opportunities. The total petroleum resource estimate remains unchanged from the Revised National Budget 2015. The total recoverable resources are estimated at 14.1 billion standard cubic metres of oil equivalents, and only 45 per cent of the total recoverable resources had been produced by the beginning of 2015.

Total production of oil, LNG (liquefied natural gas), condensate and gas on the Norwegian continental shelf is expected to total around 217.6 million standard cubic metres of oil equivalents in 2015, with gas accounting for about half of total production. Production levels are expected to remain stable in the years ahead.