Norway’s oil output remains on a downswing

Norway’s oil output continues to shrink

While Norway recorded a slight increase in gas production in June 2022 compared to the figures from last month and the same period last year, the oil output took a downturn compared to figures from May 2022 and fell yet again behind the Norwegian Petroleum Directorate’s predictions.

Statfjord feltet (for illustration purposes); Credit; Øyvind Hagen/Equinor

Preliminary production figures for June 2022 show an average daily production of 1 529 000 barrels of oil, NGL and condensate, based on the NPD’s report on Wednesday.

Total gas sales were 10.0 billion Sm3 (GSm3), which is equal to the previous month.

Average daily liquids production in June was: 1 298 000 barrels of oil, 213 000 barrels of NGL and 18 000 barrels of condensate.

Oil production in June is 0.2 per cent lower than the NPD’s forecast and 4.2 per cent lower than the forecast so far this year. The forecasts for gas and NGL have been updated in line with the Governments prognosis for production in the revised national budget.

Production June 2022

Production figures June 2022; Courtesy of The Norwegian Petroleum Directorate
Production figures June 2022; Courtesy of The Norwegian Petroleum Directorate

The total petroleum production so far in 2022 is about 114.0 million Sm3 oil equivalents (MSm3 o.e.), broken down as follows: about 47.2 MSm3 o.e. of oil, about 6.0 MSm3 o.e. of NGL and condensate and about 60.8 MSm3 o.e. of gas for sale. The total volume is 1.5 MSm3 o.e. higher than in 2021.

Earlier this month, a strike by Norwegian offshore workers threatened to reduce the country’s output amid a dispute over wage demands. As a result, the state-owned giant Equinor initiated a shutdown of production at three fields on 5 July 2022.

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As a continued stoppage could have halted 56 per cent of Norwegian gas exports to Europe, the Norwegian government decided to step in and propose compulsory arbitration of the pay dispute.