Oil and gas production in Norway topped forecasts by nearly 4% in July as crude oil production jumped, data from the Norwegian Offshore Directorate showed on Wednesday.
Norway’s crude oil output of 1.958 million barrels per day (bpd) last month exceeded by 8.2% the regulator’s estimate of 1.809 million bpd, according to the preliminary figures for July.
Crude production jumped by 16.8% in July compared to June and by 7.2% compared to July 2024, as a major new oilfield started up production this year.
In June, the Johan Castberg oilfield in the Barents Sea reached full capacity of 220,000 bpd, operator Equinor said, noting that peak capacity was reached just three months after the field in Norway’s Arctic waters came on stream.
Norway’s gas production also topped forecasts in July, albeit by a smaller margin. Gas output was 2.2% higher compared to the forecast, as it jumped by 11.9% from June but fell by 9% compared to July last year, the Norwegian Offshore Directorate said.
Some of the decline was attributable to regular maintenance on several gas fields and export facilities this summer.
Norway’s total gas sales rose in July compared to the previous month, the directorate said.
Norway, Western Europe’s largest oil and gas producer, has been boosting its gas production since 2022 when it overtook Russia as Europe’s top gas supplier. Not a member of the EU, but a NATO founding member and key EU and UK ally, Norway looks to continue providing the gas Europe needs.
So companies operating offshore Norway are raising production of gas and oil, with the support of the Norwegian government, which continues to bet on the oil and gas industry and the massive revenues it raises for the country and its sovereign wealth fund, the world’s largest.
Norway has also started to plan its 26th oil and gas licensing round in little-explored frontier areas as it looks to boost exploration and resources to stem an expected decline in production from the early 2030s.
By Tsvetana Paraskova for Oilprice.com
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