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Norwegian oil, gas supply

falls in January

NORWAY NORWEGIAN oil and gas production dropped High gas prices in particular have helped
in January, preliminary data published by the push profits at Norwegian oil and gas compa-
High prices are Norwegian Petroleum Directorate on February nies to new records. Equinor generated an all-
an incentive, but 22 showed, even as global demand remained time high of $15bn in adjusted earnings for the
Norwegian producers robust and prices high. fourth quarter, as it was able to capitalise well on
are at their full capacity. Oil and other liquids output averaged 1.97mn the European energy crunch owing to its large
barrels per day (bpd) during the month, repre- exposure to spot markets.
senting a 7.3% year-on-year decline and a 5.9% Moving forward, Norwegian oil firms are
fall month on month. This was also 5.3% below expected to boost their investment plans in
the forecast. 2022, in light of favourable market conditions.
Gas production was down 3.7% m/m but up A survey by the national statistics office shows
3.6% y/y, and it also surpassed the forecast by that the country’s oil and gas sector is predicted
7.5%. to invest NOK159.5bn ($18bn) in 2022, up from
Oil prices are currently nearing $100 per bar- a projection of NOK154.4bn made in November
rel, propelled by strong demand and heightened last year. But this would still be down 8.1% from
tensions between the West and Russia. But Nor- 2021.
wegian producers cannot readily increase flow The statistics office said its provisional esti-
to capitalise on this, given lead times for new mate indicated a further decline to NOK131.4bn
projects. in 2023, but this is likely to be revised.
Likewise, Norwegian producers have also “If the schedules for the expected projects are
ramped up gas supply in recent months by maintained, there will be significantly higher
diverting some gas to the market that would investments in field development in 2023 than
have been injected back into reservoirs to what is currently included in the survey,” the
maintain pressure. But they are now produc- office said.
ing at their full capacity. Norway’s Hammer- A deciding factor will be whether a cluster of
fest LNG terminal, closed in late 2019 after a oil and gas discoveries in the NOAKA held by
fire, was meant to come back online at the end Aker BP and Equinor will be approved for devel-
of March but its restart has been pushed back opment, as well as the latter company’s Wisting
to mid-May. oil discovery. ™

Week 08 23•February•2022 www. NEWSBASE .com P7