Riis-Johansen has faith in new oil area in Norway

Despite the fact that oil production is down on the Norwegian shelf it is still very attractive to investors, according to oil and energy minister.

According to NPD, 40 percent of the Norwegian oil and gas has already produced. 24 percent of the remaining total volume has been found, while 36 percent are expected to be located in the future. The uncertainty related primarily to the profitability of bringing up the resources, and to question whether it is possible. Finding the large fields and the easy oil is over. In his speech Wednesday at the ONS, the oil and Energy Terje Riis-Johansen (Sp), however, enthusiastically:

“The way I see it, the outlook for the industry in Norway is good. 60 percent of the resources are not picked up yet, it makes us attractive and there is great interest in production on the Norwegian continental shelf. The Barents Sea crossed the line to a new era. When we added an area twice the size of Finnmark”, said Riis-Johansen.

The remaining potential on the Norwegian continental shelf are mostly in small reservoirs where one is dependent on large recovery to make it worthwhile to bring up oil and gas. At present, the recovery rate 46 percent. With improved technology it may see an increased. A one per cent increase in recovery on the Norwegian continental shelf will provide up to 200 billion kroner extra per year. But the technology requires research, and it costs much money. Riis-Johansen said the industry must bear the main funding.

The main driving force for new technology is the interaction between companies and suppliers. The companies are asking questions and demands, so that small and large suppliers extends a little further and have started new projects”, he said.

Norwegian Continental Shelf employs eight per cent of Norwegian workers, directly or indirectly. Riis-Johansen said there are still opportunities to create jobs and values, but the government has no concrete new plans to inject more money into the development of new production technology. The government contributes enough by coordinate and initiate assessment projects, he said.

Source: fvn.no

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