Big effects likely from far-north oil activity

Opening areas off northern Norway’s Lofoten and Vesterålen islands to petroleum operations could have major spin-offs both locally and nationally, according to the KonKraft collaboration.

Map: OLF Konkraft report

Map: OLF Konkraft report

A report for the Norwegian government finds that some 1 000-2 000 jobs might be created locally and regionally. But this and other effects depend on political decisions due in the near future.

This study is one of three submitted to Terje Riis-Johansen, the minister of petroleum and energy, at the Top Executive Forum, which conclude a series commissioned by the government.

“Forecasts indicate that Norwegian petroleum production will fall markedly over the next decade,” says Per Terje Vold, chief executive of the Norwegian Oil Industry Association (OLF).

“Access to new and attractive exploration acreage would slow this decline, sustain government revenues to the benefit of the community, keep 250 000 people in work and open opportunities for 1 000-2 000 new jobs,” states Vold.

The most interesting northern exploration areas on the Norwegian continental shelf (NCS) are ranked in the KonKraft report on oil and gas activities in the far north.

Earlier estimates from KonKraft indicate that these areas may contain 3.4 billion barrels of oil equivalent (boe), or about five times the size of a field like Norne in the Norwegian Sea. The report’s evaluation of potential spin-offs on land is based on various estimated field sizes and developments which correpond to just over two billion boe.

KonKraft is a collaboration forum for the OLF, Federation of Norwegian Industries, Norwegian Association of Ship-owners and Norwegian Trade Union Federation (LO). The objective of KonKraft is to improve and boost competitiveness on the Norwegian Continental Shelf, ensuring stability and constancy for development activity on the shelf.

Read more on olf.no

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