The main market for Norwegian oil is the United Kingdom followed by the Netherlands being the first delivery point, then Germany, Sweden, France, Denmark, Ireland and more. Only approximately 2% makes it across the “great pond” to America.
Since the price drop on the oil market in 2014 which was caused by various factors but mainly by new oil discoveries and by the Organization of Petrol Exporting Countries (OPEC) trying to sustain its market share even by lowering the oil price, a barrel of crude oil plummeted from around $110 per barrel to around $30 per barrel and the current price is hovering at around 50 $/bbl at the moment (per October 2016). Low price environment pushes many oil producers, especially those who have higher extracting …show more content…
“There’s a proverb in Norway that says necessity teaches the naked woman how to knit,” said Bjorn Otto Sverdrup, a Statoil vice president (The New York Times, 2015). Although the companies cannot control the price of which oil is traded, they can influence how effective the drilling and production is going to be.
Statoil is aiming to advance the field recovery from the typical 30 – 35% to an incredible 60% using new technology that could move compression which is needed to pump up oil and gas out of most wells closer to the reservoir (Reuters, 2013). This means the compression would be provided at the seabed instead of on the platform. Statoil is currently carrying out two of these projects on the Norwegian continental shelf and was awarded for a breakthrough in the subsea technology in 2012 (Norwegian Petroleum, 2016, 2). Using gravity in the form of the weight of water is a clever solution and Norway is a perfect place to try such an innovation because of diverse research programs that are funded by the …show more content…
Of the 67 basis fields, 40 experienced reserve growth - 433 million Sm3 while 12 fields had a reduction of 45 million Sm3 (see Figure 2) (NPD, 2015).
Original discoveries (marked by lighter green on the graph) also increased in reserves mainly because of new technologies, new demarcation of the fields and additions to them that were not considered profitable earlier on but eventually were because of the high oil market prices in this period.
And finally, the newly discovered fields accounted for 80 million Sm3 oil and led to 13 new development decisions (see Figure 3), Edvard Grieg and Ivar Aasen being the biggest two.
Major 2010/2011 discovery Johan Sverdrup, which is the fifth biggest discovery on the Shelf in the history, has not been submitted for the PDO until 2015. Johan Sverdrup’s gross reserves have been estimated to 1.65–3.0 billion barrels of oil equivalent. That means that when producing at its peak, it will cover one-quarter of the whole Norwegian oil production (Lundin Petroleum). If the PDO was approved before the end of 2014, the quota set by NPD would have been met with a substantial
Since the price drop on the oil market in 2014 which was caused by various factors but mainly by new oil discoveries and by the Organization of Petrol Exporting Countries (OPEC) trying to sustain its market share even by lowering the oil price, a barrel of crude oil plummeted from around $110 per barrel to around $30 per barrel and the current price is hovering at around 50 $/bbl at the moment (per October 2016). Low price environment pushes many oil producers, especially those who have higher extracting …show more content…
“There’s a proverb in Norway that says necessity teaches the naked woman how to knit,” said Bjorn Otto Sverdrup, a Statoil vice president (The New York Times, 2015). Although the companies cannot control the price of which oil is traded, they can influence how effective the drilling and production is going to be.
Statoil is aiming to advance the field recovery from the typical 30 – 35% to an incredible 60% using new technology that could move compression which is needed to pump up oil and gas out of most wells closer to the reservoir (Reuters, 2013). This means the compression would be provided at the seabed instead of on the platform. Statoil is currently carrying out two of these projects on the Norwegian continental shelf and was awarded for a breakthrough in the subsea technology in 2012 (Norwegian Petroleum, 2016, 2). Using gravity in the form of the weight of water is a clever solution and Norway is a perfect place to try such an innovation because of diverse research programs that are funded by the …show more content…
Of the 67 basis fields, 40 experienced reserve growth - 433 million Sm3 while 12 fields had a reduction of 45 million Sm3 (see Figure 2) (NPD, 2015).
Original discoveries (marked by lighter green on the graph) also increased in reserves mainly because of new technologies, new demarcation of the fields and additions to them that were not considered profitable earlier on but eventually were because of the high oil market prices in this period.
And finally, the newly discovered fields accounted for 80 million Sm3 oil and led to 13 new development decisions (see Figure 3), Edvard Grieg and Ivar Aasen being the biggest two.
Major 2010/2011 discovery Johan Sverdrup, which is the fifth biggest discovery on the Shelf in the history, has not been submitted for the PDO until 2015. Johan Sverdrup’s gross reserves have been estimated to 1.65–3.0 billion barrels of oil equivalent. That means that when producing at its peak, it will cover one-quarter of the whole Norwegian oil production (Lundin Petroleum). If the PDO was approved before the end of 2014, the quota set by NPD would have been met with a substantial