Norway’s crude oil export earnings surged 67.9% year-on-year in March to a record 57.4 billion kroner ($6.1 billion), primarily driven by soaring global energy prices following the outbreak of the Iran war and the subsequent closure of the Strait of Hormuz. Oil prices averaged 1,014 kroner ($107.52) per barrel in March, the highest monthly average since September 2023.
As Europe’s largest producer of oil and natural gas, the Scandinavian country exported 56.6 million barrels of crude oil in March, good for nearly 2 million barrels per day. Norway’s natural gas export revenues also climbed 19% to over 69 billion kroner as Europe sought alternative energy sources amid Middle East instability, helping the country record a trade surplus to the tune of 97.5 billion kroner, its highest level since January 2023.
Norway’s windfall oil earnings did not escape the attention of U.S. President Donald Trump, “Europe is desperate for energy, and yet the United Kingdom refuses to open North Sea oil, one of the greatest fields in the world. Tragic!!!” he wrote in Truth Social. “Aberdeen should be booming. Norway sells its North Sea oil to the UK at double the price. They are making a fortune,” he added.
North Sea oil and gas production is in long-term, structural decline, with over 90% of its producible resources already extracted. However, Norway has been able to maintain high production by expanding exploration in the Arctic Barents Sea, pivoting to new, smaller discoveries in the North Sea, and investing heavily in the Norwegian Sea.
The Barents Sea is widely regarded as one of the most promising, yet under-explored, oil and gas frontiers on the Norwegian Continental Shelf, with roughly 80% of its remaining hydrocarbon resources yet to be tapped.
Meanwhile, the Norwegian Sea is an increasingly attractive area of interest, with roughly 50% of its remaining oil and gas resources yet to be discovered. About one-third of the estimated resources in the Norwegian Sea are located in unopened areas, including off Lofoten and Vesterålen as well as around Jan Mayen.
By Alex Kimani for Oilprice.com
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