Norwegian oil and gas production exceeded the regulator’s forecast by 2.6% in August, for the second consecutive month, data from the Norwegian Offshore Directorate showed on Tuesday.
Last month, oil output in Western Europe’s biggest crude and natural gas producer averaged 1.924 million barrels per day (bpd), up by 7.1% compared to the directorate’s forecast, as new fields are ramping up output. Natural gas production offshore Norway topped projections by 1.2%, the regulator said.
Preliminary oil and gas production for August is lower than in July, as output depends on the scheduled late-summer maintenance on Norwegian export infrastructure and unplanned outages at the dozens of offshore oil and gas fields.
Yet, total gas sales inched up in August compared to July, the regulator said.
Norway topped production forecasts for July, too, when crude oil output was 8.2% above expectations and gas output was 2.2% higher compared to the forecast.
Norway 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.
“Norway wants to be a long-term supplier of oil and gas to Europe, while the Norwegian continental shelf will continue to create value and jobs for our country,” Energy Minister Terje Aasland said last month.
By Tsvetana Paraskova for Oilprice.com
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