Norway: Gas and oil extract more profit but still falls – REGNUM

Oslo, August 6, 2016, 20:51 – REGNUM In the first half of this year, Norway has increased hydrocarbon production by 3.5% compared to the same period last year. In this kingdom of profits from the participation in the development of oil and gas fields on the continental shelf has fallen by 29%, amounting to 38.7 billion kronor (about $ 4.6 billion). As the correspondent of IA REGNUM , such data are contained in the final report Petoro AS – oil company managing state assets in Norway.

The main reason for the decrease of financial indicators, recognize Petoro , the drop in oil and gas prices, as well as, as a consequence, the weakening of the relevant markets. Revenues from natural gas production by the first half of 2016 totaled 31.8 billion kroons, is 10.2 billion less than a year earlier. Exports of natural gas, on the contrary, increased – by 1.2 billion cubic meters

Oil revenues, in turn, due to the prolonged price volatility decreased by 31% compared with the first half of 2015.. To some extent, the raw material producers played into the hands of a higher dollar, noted in a Norwegian company.

Noting the negative indicators, Norwegian businessmen do not hurry to make optimistic forecasts. As I commented on the Wall Street Journal executive Petoro AS Grete Moen, Norway and further may lose regardless of income from price fluctuations: the road, “expensive” north barrel of oil can hardly compete with the cheaper brands. It is necessary to reduce costs, thus reducing the cost of oil, be sure to Grete Moen. “On the Norwegian continental shelf have fundamental problems with costs. If we do not make the necessary changes, production from existing fields may stop earlier than we would like, and new projects are not profitable “, – she said

It should be reminded that a large part of export of hydrocarbon Norwegian income is accumulated. in special reserve funds. As previously reported IA REGNUM , in 2016, the year to cover the current budget expenditures of the kingdom for the first time the government was forced to borrow funds from the “oil piggy bank.” According to the draft of the revised budget, this year’s tranche of force majeure will be 206.5 billion NOK.

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