Norway is intensifying efforts in oil and gas exploration, banking on the sustained growth of its energy resources. The country witnessed an uptick in natural gas production over the last year, signaling its commitment to the sector’s ongoing development. Despite encountering some setbacks in 2023, such as unexpected and prolonged maintenance shutdowns at various fields, Norway’s overall oil and gas production remained resilient.
Investments for 2023 and 2024 are surpassing initial expectations, propelled by heightened activity levels, a devalued Norwegian currency, and escalating costs. Oil and gas companies are gearing up to enhance exploration activities and offshore spending in Norway, aiming to uphold production levels and increase exports to the broader European market.
Presently, the primary focus of exploration endeavors revolves around areas proximate to existing infrastructure. This strategic approach ensures swift integration of discoveries, adding value while the fields remain operational, according to the Norwegian Offshore Directorate’s recent annual report. While crucial for short to medium-term production sustainability, the Directorate emphasizes the necessity for companies to actively explore more frontier areas to unlock untapped resource potential.
To fully harness the available resources, the Norwegian authority urges companies to commit to testing innovative ideas in frontier regions. The report underscores that the robust exploration and production activities of the past year are poised to persist into 2024.
In 2023, operators on the Norwegian Continental Shelf initiated drilling for 34 exploration wells, consistent with recent years. Notably, 14 oil and gas discoveries were made, distributed across the North Sea, Norwegian Sea, and Barents Sea. Looking ahead, the Norwegian Offshore Directorate anticip an uptick in exploration activity, with operators planning 40 to 50 exploration wells this year.
Despite encountering slightly lower-than-expected oil and gas production in 2023 due to unforeseen and extended maintenance shutdowns, Norway remains optimistic about its energy sector’s resilience. The commitment to increased exploration and production activities underscores Norway’s strategic focus on sustaining and expanding its role as a key player in the global oil and gas market.