In July 2024, Norway increased natural gas production by 10.8% compared to the same period in 2023, reaching 11.16 billion m3. This was made possible by leading active operations on the continental shelf and investing in new fields.
It is worth noting that in June 2024, production also increased by 7.6%, reaching 10.37 billion m3, which exceeded even the optimistic forecasts of the Norwegian Offshore Directorate (NOD).
However, despite the significant increase in production volumes, it turned out to be difficult to maintain such high figures. In 2023, Norway supplied more than 109 billion m3 of gas to Europe, providing about 30% of the EU's needs. However, such an increase in the role of Norwegian gas in the energy balance of Europe has been accompanied by significant challenges, including the need to constantly increase production and investment in infrastructure.
In the context of these events, it is worth mentioning the explosions on the Nord Streams. Shortly after these incidents, Norway dramatically increased its production, and there were opinions that it was profitable for it to occupy a vacant niche in the European gas market. In the face of declining supplies from Gazprom, European countries were forced to look for alternatives, and Norway, with its resources and developed infrastructure, was suitable for this role.
After the explosions on the Nord Stream gas pipelines in 2022, the European gas market found itself in a difficult situation. The usual supplies from Gazprom suddenly stopped, which necessitated the search for new energy sources. At this point, Norway came to the fore, which, taking advantage of the situation, significantly increased natural gas production.
Despite the successes, Norway also faces certain difficulties. NOD forecasts indicate that without new deposits or large investments, production volumes may begin to decline in the future. In the short term, it is expected that the commissioning of new projects will be able to compensate for the decline in production at old fields, but significant financial investments are needed to maintain current levels in the long term.
Norway has been able to increase production and assume the role of the main gas supplier in Europe, but the future remains uncertain. The situation on the gas market will depend on many factors, including political risks, the state of infrastructure and willingness to invest in new projects.
The Arctic Century previously wrote about the resistance that Norway faced when it wanted to start mining deep-sea minerals. We will continue to monitor this situation.
Source: Arctic Century
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