Petroleum Sector Brings USD 56.8 Billion to Norway

In the Revised National Budget, the net cash flow from the petroleum sector in 2011 is estimated to NOK 311 billion (app. USD 56.8 Billion). This is an increase of NOK 23 billion (USD 4.2 Billion)

from the National Budget 2011.

– The petroleum industry is Norway’s largest and most important industry. A high oil price and a sustained high level of activity make the basis for high value creation in the industry. Estimates show that the industry is contributing with more than NOK 311 billion to the Treasury. This is equivalent to more than 10 transport budgets, says Minster of Petroleum and Energy, Mr Ola Borten Moe.

The income increase is mainly a result of a higher oil price. Of the total cash flow taxes and fees constitute NOK 189 billion. The net cash flow from the State Direct Financial Interest (SDFI) is NOK 109 billion and the Statoil dividend is NOK 13 billion.

Since last year, there has been a substantial increase in the oil price. The average oil price so far in 2011 is about NOK 620/barrel. The oil price is expected to stay relatively high also for the rest of 2011. In the revised budget, the oil price assumption for 2011 is adjusted upwards with NOK 90 to a level of NOK 575/barrel.

– Strong demand growth, halt in oil exports from Libya and unrest in other oil exporting countries in the Middle East and North-Africa are contributing to the price increase, says Minster of Petroleum and Energy, Mr Ola Borten Moe.

Oil production from the Norwegian Continental Shelf in 2011 is estimated to 2.1 million barrels per day, a four percent decrease since 2010. Gas production is estimated to 109 million Sm3 oil equivalents and is expected to increase from 2010. In 2011, the gas share of total petroleum production is estimated to 48 percent. The total recoverable resources on the Norwegian Continental Shelf were in the resource account for 2010 estimated to about 12.8 billion Sm3 oil equivalents.

The investments in the petroleum industry are of great importance to the Norwegian economy. In the revised budget, the investments are estimated to NOK 145 billion. The activity is high in all phases of the petroleum industry.

– Maximizing recovery from producing fields is a cornerstone of the government’s petroleum policy. New field developments and upgrades on existing fields generate high activity on the Norwegian Continental Shelf. Also, the exploration activity is high and a number of promising discoveries are being made. This creates employment and positive spin-offs all over the country, making a foundation for the industry for many decades to come, both offshore and onshore, says Minister of Petroleum and Energy, Mr Ola Borten Moe.

[mappress]

Source:Regjeringen , May 13, 2011;