“We see a tendency for the companies to prioritize short-term earnings rather than long-term value creation,” said Bente Nyland, during NPD’s annual review on Jan. 14.
NPD said more than half of the resources on the Norwegian Continental Shelf have yet to be produced, and Nyland is concerned that sinking oil prices will mean that resources will be left in the ground.
Fifty-six exploration wells were spudded in 2015 compared with 58 in 2014 (OGJ Online, Jan. 15, 2015). NPD said 33 of the 56 were in the North Sea, 16 in the Norwegian Sea, and 7 in the Barents Sea. Eleven discoveries were made in the North Sea and six in the Norwegian Sea. NPD said most of the discoveries were minor.
Six fields are being developed in the North Sea, two in the Norwegian Sea, and one in the Barents Sea. Authorities in 2015 approved four plans for development and operation compared with one in 2014.
Four fields came on stream in 2015 and 82 were in operation at yearend compared with 51 some 10 years ago.
NPD said lower oil prices led to “a substantial drop in revenues, but the industry continues to make a strong contribution toward maintaining Norway’s general welfare level.”