In the National Budget 2014, the Norwegian State’s net cash flow from the petroleum industry is estimated at almost NOK 344 billion in 2013. Taxes account for NOK 207 billion of this amount, while the State’s Direct Financial Interest (SDØE) contributes approximately NOK 123 billion.
The remainder, NOK 14 billion, is dividends from Statoil. The revenue estimates are based on oil and gas prices of NOK 635 per barrel and NOK 2.29 per standard cubic metre, respectively.
“The petroleum sector is Norway’s most important industry, and benefits the entire country. This is evidenced both by the large revenues generated for the public purse and by the number of jobs created by the industry from the south to the north,” says Minister of Petroleum and Energy Ola Borten Moe.
Petroleum industry investment is expected to total around NOK 197 billion in 2014.
“A large proportion of current investment goes towards ensuring production in existing fields and smaller fields that are dependent on existing infrastructure. Investing while infrastructure is available is good resource management. However, it is also important for longer-term value creation that parallel efforts are made to explore and develop less mature areas, for instance in the Barents Sea,” says Minister of Petroleum and Energy Ola Borten Moe.
Production of crude oil, NGL and condensate is expected to total about 1.8 million barrels per day in 2014. Gas production is expected to total almost 107 billion standard cubic metres.
The estimate of the total petroleum resources on the Norwegian continental shelf was recently updated, and is now 88 billion barrels. This increase of 6 per cent compared to previous projections is linked to the inclusion of resource estimates for the south-eastern Barents Sea and the seas around Jan Mayen. Approximately 42 per cent of the total estimated petroleum resources had been produced by 31 December 2012.
“The resources on the Norwegian continental shelf provide a basis for ongoing value creation far into the future. By continuing to invest in increased recovery from existing fields, continued development of discoveries and active exploration of opened areas, the petroleum industry will be a source of revenue, jobs and innovation for several decades to come. Moreover, activity on the Norwegian continental shelf will enable the Norwegian supplier industry to continue its development as a highly specialised, internationally competitive industry,” says Minister of Petroleum and Energy Ola Borten Moe.
Press Release, October 15, 2013