Norway expects sharp drop in oil production
Figures from the Norwegian Petroleum Directorate indicate that Norwegian oil production will continue to decline sharply over the next years.
In 2001, Norway had a daily oil production of 3,4 million barrels. Since then, production has plummeted. According to the Petroleum Directorate, that trend will continue in the years ahead. In 2009, Norwegian oil production is expected to total 110,8 million standard cubic meters, or 1,9 million barrels per day, newspaper Dagens Næringsliv reports with reference to TDN Finans. In 2008, Norway produced an estimated 122,7 million cubic meters of oil. Estimates for 2010 are 104,4 million standard cubic meters and for 2011 – 98,5 million. The Petroleum Directorate believes investments, including exploration investments, in 2009 will amount to about 130 billion NOK (13,6 billion EUR). However, uncertainties in the industry are considerable following the price drop and the troubled international finance situation. -If the prices drop below 60 USD, the industry will need cost reductions, including lower prices from the supply industry, the directorate maintains.
