Norway: Will offshore gas deposits remain unutilised?

At the end of 2022, there were over 80 gas discoveries off the Norwegian coast covering an estimated area of more than 1.2 billion square metres. Although many of these deposits have considerable value potential, it is highly uncertain how much natural gas can actually be extracted, according to the Norwegian Petroleum Directorate (NPD). The challenges cited by the NPD include complex deposits and high production costs.

Around two thirds of the country's gas reserves have not yet been extracted. And although production is expected to remain high over the next five years, it is expected to decline "fairly quickly" thereafter, according to the authority.
It therefore makes sense to consider higher gas prices and closer cooperation in order to drive forward the necessary technology development, coordination and infrastructure while the will and ability to do so are still available. The oil and gas producing companies were therefore asked by the NPD to examine whether the remaining resources could be extracted profitably with the help of existing technology and cross-sector coordination between the companies.

Norway has become Europe's largest supplier of natural gas, replacing Russian gas supplies that were interrupted after Moscow's invasion of Ukraine. The country is likely to remain an important supplier in the future as neighbouring countries, including Germany, use gas as a transition fuel as part of a green initiative and develop more climate-friendly alternatives such as blue hydrogen.

Source: gCaptain, NPD