Norway Set for Boost in Oil and Gas Exploration in 2024

In an ambitious move, Norwegian oil and gas firms are gearing up to elevate their exploration activities in 2023, planning to drill approximately 40 to 50 new wells. This marks a considerable upsurge from the 34 wells completed in the preceding year. As per the Norwegian Offshore Directorate’s report, over half of the 23 wildcat wells unearthed hydrocarbons last year.

Norway: Europe’s Top Gas Supplier

Following the disruption of Russian supplies due to the Ukraine invasion, Norway emerged as Europe’s leading supplier of natural gas in 2022. The nation is striving to sustain its oil and gas production levels in the near term. A record investment of 77 billion kroner is expected to be funneled into ongoing field developments this year. Despite an unexpected plunge in natural gas production during summer, attributed to unplanned outages and extended maintenance, Norway witnessed a record volume of gas exports in December.

Record Oil Production

Oil production in Norway escalated to 104 million barrels of oil equivalent per day in 2023, marking an increase from the previous year’s 97.8 million. Conversely, the output of natural gas saw a slight contraction of about 5%. The Offshore Directorate has urged companies to expand their exploration horizons beyond regions in proximity to existing infrastructure, thereby striking a balance between cost, emissions, and discovery potential.

Future Production Estimates

Norway’s daily natural gas production is predicted to climb by 3% in 2024, while oil output is projected to dip by a similar percentage. The combined daily oil and gas output is expected to hover steady at 4.01 million barrels of oil equivalent per day. Oil output is forecasted to rise to 2.1 million boed in 2025, bolstered by the anticipated commencement of Equinor’s Johan Castberg oilfield in the Barents Sea.