With the production of oil and liquids set to increase markedly next year, Norway’s draft budget predicts that petroleum revenues will reach a new record high next year.
Norway is Europe’s largest producer of oil and gas, with it meeting about of quarter of the demand for natural gas in the UK and Europe. According to government estimates, the country’s gas production is expected to rise by 8% this year, but Terje Aasland, Norway’s oil and energy minister, pointed out that sustaining this would depend on developing new capacity:
“Norwegian gas exports to Europe are set to increase by as much as 100 TWh of energy from last year. The most important thing Norway can contribute now to help our neighbours in Europe is to maintain high daily production and to invest in new production on the continental shelf.”
While Norway has the state-owned energy company Equinor, other energy majors like BP, the maker of Castrol metalworking fluids and other lubricants, also operate in the country’s waters. In July this year, the authorities in Norway approved three applications from operators to increase gas production at a number of existing fields.
The country’s draft budget predicts that revenue for oil and gas activities will rise from 1.2 trillion crowns this year to reach a record high of 1.4 trillion Norwegian crowns (about £118 billion) next year, about five times more than in 2021, with exchange rates with the US dollar and high oil and gas prices mostly driving the increase.