Norway started producing oil more half a century ago, and, according to the Norwegian Petroleum Directorate, it still hasn't produced half of the resources available.
"NPD's analyses show that around 48 percent of resources have been produced. This means that more than half have yet to be discovered and produced. Of these, decisions have already been made to produce around 18 percent. Of course, it is impossible to say how much remains to be discovered, but the NPD's analyses indicate that this constitutes as much as 25 percent of the total,” the NPD said Thursday.
At the end of 2019, there were 87 producing fields, which is a new record in Norway. According to the country’s oil and gas regulator, there are good opportunities for discovering oil and gas across the entire shelf.
"The NPD's projection of undiscovered resources is about as before for the North Sea and the Norwegian Sea, while expectations have been lowered in the Barents Sea Southeast due to dry wells. However, the expectations for undiscovered resources in central parts of the Barents Sea have been increased due to the mapping of several prospects and much good work in the production licenses.
A total of 17 discoveries were made in 2019, 10 in the North Sea, 6 in the Norwegian Sea and 1 in the Barents Sea. While several of these oil finds are relatively small, NPD believes they can provide value.
"Small discoveries near existing infrastructure can yield highly profitable developments since it is relatively easy and reasonable to tie them into nearby platforms and pipelines,” NPD said.
Director-General of the NPD Ingrid Sølvberg said: "The companies are generally making a lot of discoveries. The last two years have seen a marked increase in proven volumes compared with the three previous years. This shows that there is a connection between the number of exploration wells drilled and discoveries made."
Per the NPD report, 57 exploration wells were spudded in 2019, four more than in 2018. A total of 37 exploration wells were drilled in the North Sea, 15 were drilled in the Norwegian Sea and 5 in the Barents Sea.
"It is reassuring that the industry still has significant faith in the Norwegian shelf; in 2020, we expect about 50 exploration wells", says Sølvberg.
The Norwegian Petroleum Directorate projects that the overall production of oil and gas in 2024 will be close to the record year 2004 – among other things due to Sverdrup and because of Johan Castberg field in the Barents Sea is scheduled to come on stream in 2022. While oil accounted for most of the production in 2004, gas will account for about one-half in 2024.