According to preliminary figures from the local regulator released recently, Norwegian crude oil and natural gas production fell short of government projections in November.
As per the information released by the Norwegian Petroleum Directorate (NPD), Norway produced crude oil on average at 1.74 million barrels per day (bpd) in November. That was slightly less than the crude oil output of 1.749 million bpd in October and 8.7% below the projection of 1.905 million bpd.
Production of natural gas averaged 346.4 million cubic metres per day, 1.8% less than expected by the government and slightly less than in October.
Norway’s production of both natural gas and crude oil is anticipated to rise in the near future. The second phase of the enormous Johan Sverdrup oilfield, which Equinor began pumping oil from last week, will increase production from Western Europe’s largest oil patch by more than 180,000 bpd.
The majority of the volumes will be delivered to Europe in the current market environment, according to Geir Tungesvik, executive vice president of Projects, Drilling & Procurement at Equinor. Johan Sverdrup accounts for substantial and crucial energy deliveries, Tungesvik added.
Johan Sverdrup currently produces 535,000 bpd, and when Johan Sverdrup 2 is fully operational, the massive oilfield will generate 720,000 bpd.
According to Equinor, Johan Sverdrup alone may be able to supply 6-7% of the daily oil consumption in Europe at the current rate of production. For the EU, which must substitute 500,000 bpd or perhaps more of seaborne purchases of Russian crude oil now that the EU prohibition on imports by sea has taken effect, the increased supply from Johan Sverdrup, the majority of which will go to Europe, is great news.
According to official projections released earlier this year, natural gas output in Norway, which now provides 25% of the gas used in the EU and the UK, is anticipated to increase by 8% in 2022 compared to 2021.
Norway’s authorities granted bids from operators to increase production from several active gas fields this summer to enable increased gas production as its important allies, the EU and the UK, rushed to secure supplies of gas before the winter.