Oil companies VLI use 175 billion less in 2015 – Aftenbladet.no

Oil companies VLI use 175 billion less in 2015 – Aftenbladet.no

– We expect in the next five years a decline in investment of 20 percent. We believe exploration activity is greatly reduced and that development of discoveries is postponed, says Director General Bente Nyland.

Nyland held Thursday its annual press conference on the state of the Norwegian shelf. She beat once stated that the world looks a little different at the start of 2015 than at the same time last year.

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– When was the message still great growth. High costs on the Norwegian shelf concerned and they do still. But the joker in 2014 was the rapid fall in oil prices. It shall created great concern in the market. Along with the continued high cost creates unrest, says Nyland.

Regardless oil must cost down even though it is difficult for those affected, says the Director

– drop in oil prices may lead to industry conducts significant cost cuts. It needed, although in the short term can mean a lower level of activity, says Nyland.

More jobs at risk

The forecast for investments on the Norwegian shelf in the period 2015 to 2019 is 175 billion lower than one year ago. In addition expect NPD decline in leteaktivtiteten on the Norwegian shelf.

– Norwegian shelf is well positioned to meet and deal with the changes happening now, although there is considerable uncertainty in the petroleum industry, says Nyland.

The year 2014 is characterized by 9500 jobs are gone as a result of major cost reductions in the entire oil industry. In addition, the oil price has halved which could amplify the oil industry’s need to save money, confirming Nyland.

– We have learned earlier that when reality starts to turn in, so you can see around for solutions. It has probably been somewhat easy to spend money when man has had high oil prices and not thought so much about costs. It struck in earnest last year the cost was not sustainable in the Norwegian shelf. Statoil initiated including the STEP program is its (Statoil technical efficiency program – an overarching program with six sub-projects).

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– You think just as many jobs disappear from Norwegian oil industry in 2015?

– We do not do calculations on this, but have seen that companies have staffed up because they have expected high activity. Had they listened to NPD, they would have known that besides Johan Sverdrup are not so many developments to come. The developments coming will be small and probably subsea developments with connectivity to existing fields, says Nyland.

Four new fields came into production in 2014. The number of exploration wells was the third highest ever. 56 exploration wells were spudded, and it was made 22 new discoveries – two more than the previous year. Eight of these are in the North Sea, five in the Norwegian Sea and nine in the Barents Sea.

Produces more

In 2014, increased oil production for the first time since the millennium. The main reason is that new wells have produced more than expected.

One year ago warned oil companies that they would deliver 12 to 14 plans for development and operation (PDO) of new fields in 2014. The government big surprise came only one (Gullfaks Rimfaks valley in the North Sea). However, eleven fields under development at year end: nine in the North Sea, one in the Norwegian Sea and one in the Barents Sea. This is a record number and will make significant investments in the next few years.

– There are 79 fields on the Norwegian shelf. This is a profitable field where the state and companies make money, and so it will remain, even if oil prices were to fall further, says Bente Nyland.

It remains to produce 55 percent of the total oil and gas resources Norway. These remaining resources provide the basis for continued high value added and high activity for years to come, she says.