Norway Gas Production Maintains YoY Growth

Norway’s natural gas output averaged 322.6 million cubic meters (11.4 billion cubic feet) per day last month, maintaining a consistent year-on-year growth (YoY) in monthly production in 2024.

The figure exceeded the forecast by 2.3 percent. It rose from 276 million cubic meters (9.7 billion cubic feet) per day in May 2023 but fell from 346.8 million cubic meters (12.2 billion cubic feet) per day in the prior month, according to data released by the Norwegian Offshore Directorate Thursday.

The Nordic country sold 10 billion cubic meters (353.1 billion cubic feet) of gas May 2024, down from April.

Crude oil production totaled 1.7 million barrels per day (MMbpd), down compared to the same period a year ago and the preceding month. It fell short of the projection by 8.2 percent.

Overall liquid production stood at 1.9 MMbpd, also down by both prior-year and sequential comparisons and 7.6 percent short of the forecast.

Last year, Norway remained the European Union’s biggest supplier of natural gas accounting for 30 percent or 87.8 billion cubic meters (three trillion cubic feet), mostly pipeline gas, according to the European Commission’s quarterly gas report released June 6. Norway has overtaken Russia since the latter’s invasion of Ukraine 2022.

Production Growth

Norway expects to put several projects into production this year.

On April 22, 2024, Aker BP ASA said it had started up the Hanz field on the Norwegian side of the North Sea. The subsea development, which has an estimated investment of nearly NOK 5 billion ($474.6 million), holds reserves of about 20 million barrels of oil equivalent, according to 35 percent owner and operator Aker BP.

In the Norwegian Barents Sea, three fields can start producing by the end of 2024, according to a press release by the Norwegian Offshore Directorate April 17.

“Forecasts indicate that production on the Norwegian shelf will peak in 2025”, the Directorate said at the time.

“Johan Castberg coming on stream is one of the contributing factors”, it said. The field is operated by Norway’s majority state-owned Equinor ASA with a 50 percent stake.

“Good infrastructure is the proven key to high and long-term value creation throughout the shelf”, the Directorate added. “This is why it is important that major new field developments contribute to good, comprehensive area solutions. This means that minor discoveries can be tied back, and it will also stimulate new exploration activity”.

“Wisting is the next major development in the Barents Sea that can contribute new infrastructure”, it said referring to another Equinor-operated field. “This is a strategically important project where the authorities expect the licensees to facilitate a good area solution.

“Both Goliat, Johan Castberg, and most likely also Wisting, will eventually need gas offtake and the authorities are concerned with ensuring good coordination among companies and good joint solutions”.

The Directorate said at the time that Norway’s gas exports to Europe could be maintained at the current level through 2030 but that after the decade, deliveries could decline. “This is why more gas discoveries need to be developed”, it said. “Increased export capacity from the Barents Sea could be an important contribution.

“Studies are under way on how to potentially expand export capacity from the Barents Sea”.

The directorate expects eight to 10 exploration wells to be drilled in the Barents Sea this year.

Investment Growth

Norway is forecast to see NOK 247 billion ($23.4 billion) in oil and gas investments in 2024, the highest nominal estimate since this statistic started, Statistics Norway reported May 28, 2024.

Compared to actual oil and gas investments in 2023, investments in 2024 are expected to grow 14.7 percent, the government agency said in the report on its website.

“Investments in all investment areas are expected to increase compared to the corresponding estimates given for 2023, but it is a marked increase in field development that contributes the most to the projected increase in 2024”, it said.

“The many field developments for which a plan for development and operation was delivered late in 2022 will overall have higher investment activity in 2024 than in 2023. It is common for development projects to have higher investments in the second year of development than in the first”.

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