The total remaining resources on the Norwegian shelf can provide “a basis for oil and gas production for decades to come”, according to the Norwegian Petroleum Directorate (NPD).
In its 2016 Resource Report, the NPD estimates that nearly 105 billion cubic feet of oil and gas on the shelf is yet to be discovered. Nearly half of the undiscovered resources are in the Barents Sea, according to the NPD, while the rest are equally distributed between the North Sea and Norwegian Sea. In order for these undiscovered resources to contribute toward maintaining production, the NPD has warned that continued high exploration activity is needed.
Commenting on the Norwegian shelf’s oil and gas industry, the NPD stated in a release on its website:
“At the end of 2015, there were 53 companies on the shelf, which is a doubling since 2000. Most of these companies are active in the exploration phase. New players mean greater diversity, and greater diversity means that we test a greater number of ideas and more innovative concepts. Overall, this contributes toward a higher discovery rate and increased values.
“The oil and gas industry is currently experiencing a period characterised by low oil prices and considerable challenges. This means it is important to have a long-term perspective. The purpose of the resource report is to increase understanding of the resource base on the Norwegian shelf and thereby contribute to sound decisions for future value creation.”
A total of 56 exploration wells were spudded in 2015 and around 30 wells are expected to be drilled this year.
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