Carless cities are Europe’s future
Norway’s capital, Oslo, has announced it will eliminate conventional automobiles from its city center by 2019, replacing them with electric cars — and thus slash its greenhouse gas emissions 50 Continue Reading
Norway expects steep drop in rig activity
Norwegian government expects a decline in the number of rigs exploring for or producing oil and gas offshore in 2016. File photo by A.J. Sisco/UPI OSLO, Norway, Nov. 24 (UPI) — There should be a steep drop in the number of rigs deployed for exploration of oil and gas reserves offshore Norway, national statistics show. Lower crude oil prices are influencing exporting and importing nations alike. For Norway’s citizens, the number of jobs in the energy sector decreased by half from third quarter 2014 to third quarter 2015. Data gathered by Statistics Norway find total investments in oil, gas, manufacturing, mining and electricity for 2015 so far are $27.4 billion, down 9.4 percent year-on-year. For oil and gas alone, the year-on-year decline was 11.8 percent. Brent crude oil, the global benchmark price, is about 45 percent lower than this time last year. The decline acts as a form of […]
Statistics Norway: Number of Active Rigs on Norwegian Shelf to Fall in 2016
The number of active rigs on the Norwegian Shelf is expected to decrease in 2016 due to low oil prices and operator processes to cut rig costs, according to a new survey by Statistics Norway. The number of active rigs on the Norwegian Shelf is expected to decrease in 2016 due to low oil prices and operator processes to cut rig costs, according to a new survey by Statistics Norway. Investments in oil and gas extraction and pipeline transport for 2016 are estimated at $19.7 billion, which is 9.3 percent lower than the corresponding estimate for 2015 given in the fourth quarter of 2014, and 5.6 percent lower than the estimate given in the previous quarter. As a result of this decreased investment, there is expected to be a “sharp decline” in the number of exploration wells drilled in the region next year, according to Statistics Norway. The investments […]
Norwegian energy giant addresses climate concerns
Norwegian energy company Statoil sees change coming in energy industry, with renewables meeting most of the future demand. File Photo by Stephen Shaver/UPI OSLO, Norway, Nov. 23 (UPI) — Oil and gas will continue playing a strong role in the global energy sector, but climate issues are sparking an industry sea change, the head of Statoil said. Most major economies have offered climate proposals ahead of the late November meetings in Paris. The U.S. government has plans to cut emissions by about 25 percent of their 2005 levels by 2025, and similar commitments have come from Europe, Russian and Scandinavian countries. Eldar Saetre, the chief executive officer at Norwegian energy company Statoil, said those commitments are not enough to keep climate change in check . "But there are weak signals that give cause for optimism," he said. "On the political side there is stronger willingness and commitment from some […]
Statoil Follows Shell in Quitting Alaska
Explaining its decision, Statoil said its exploration activities in the Chukchi Sea couldn’t compete with projects elsewhere. “Solid work has been carried out, but given the current outlook we could not support continued efforts to mature these opportunities,” said Statoil’s head of exploration, Tim Dodson. The Norwegian oil and gas producer, which entered Alaska in February 2008, said it would close its office in Anchorage following recent exploration results in neighboring leases, and exit all its operations in the Chukchi Sea. The Chukchi Sea is believed to hold about 15 billion barrels of recoverable oil, but weak oil prices are reducing companies’ appetite for high-cost exploration in Arctic frontier areas, where they face long transportation distances, a challenging environment and lack of infrastructure. Shell announced on Sep. 28 that it would stop its exploration activity in Alaska for the foreseeable future, as its discoveries were insufficient to warrant further […]
Energy jobs in Norway down by half
Employment prospects in the Norwegian oil and gas sector have been falling since late 2012, federal data show. File photo by Maryam Rahmanian/UPI OSLO, Norway, Nov. 13 (UPI) — Though trade levels increased during the third quarter, the number of jobs opened in the Norwegian oil and gas sector continues to decline, national data show. Economic growth has been slow for most of the year for Norway, with gross domestic product increasing by slightly less than 1 percent for the past four quarters combined. Statistics Norway said the trade surplus for September was $1.9 billion, the second lowest level since March 2003. In a snapshot of labor figures, the data-mining body oil and gas said employment prospects were dwindling. "The number of job vacancies in the production of oil and gas decreased by half from the third quarter of 2014 to the third quarter of 2015," the agency said. […]
Oil Slump Pits U.K. Carrots Against Norwegian Stick in North Sea
The Oseberg A offshore gas platform operated by Statoil ASA stands in the Oseberg North Sea oil field 140kms from Bergen, Norway. Faced with the collapse in oil prices, the two dominant North Sea producers are taking opposite approaches to bolster dwindling investment: The U.K. is offering carrots, while Norway is wielding a stick. Britain plans to extend the 1.3 billion pounds ($2 billion) of tax cuts granted to producers in March after more than one in three fields was rendered uneconomic by the slump in crude. In contrast, Norway has shunned incentives and warned companies that scrapping projects could hurt their chances of getting new Arctic licenses. The differing strategies highlight the divide between depleted British waters and the untapped potential and larger reserves on the Norwegian side of the North Sea. Norway can afford to be uncompromising, while the U.K. struggles to extend the life of aging […]
Rig `Graveyard’ Looms as Statoil Cuts North Sea Drillers Loose
The pressure is building on North Sea drillers starved of contracts as Statoil ASA deepens cuts in investment to cope with a collapse in crude prices. In less than 18 months, Norway’s biggest oil company has scrapped four years worth of drilling by canceling or suspending rig contracts, according to Bloomberg calculations based on Statoil statements. That includes Monday’s cancellation of a Songa Offshore rig four months early. The cuts by Statoil, operator of more than 70 percent of Norway’s oil and gas production, are bad news for companies including Transocean Ltd., Seadrill Ltd.’s North Atlantic Drilling Ltd. unit and Fred Olsen Energy ASA, which have floating rigs idling or completing offshore contracts in the country in the coming year, analysts said. By the time the market turns, they may be forced to scrap as many as 20 units in Norway and the U.K., said Janne Kvernland of Nordea […]
Norway looks for silver lining in weak oil climate
Statistics office in Norway searching for bright spots in an economy burdened by the ongoing decline in crude oil prices. File photo by A.J. Sisco/UPI OSLO, Norway, Oct. 29 (UPI) — Though lower crude oil prices continue to drag on the Norwegian economy, the government said it expects some form of recovery by late 2016. A publication from Statistics Norway said oil prices are expected to remain low, spelling trouble for an economy that relies heavily on oil and gas for export revenue. The government said the depressed industry should result in a reduction in investment volume by about 30 percent through a five-year period ending in 2018. The statistics office said mainland gross domestic product increased by less than 1 percent between the second quarter of 2014 and the second quarter of 2015. Unemployment, meanwhile, has increased by about 1 percent year-on-year. "The fall in demand from the […]
Norway’s Wealth Fund Suffers Biggest Loss in Four Years
Yngve Slyngstad. Photographer: Krister Soerboe/Bloomberg The world’s largest sovereign wealth fund posted its biggest loss in four years, dragged down by Chinese stocks and Volkswagen AG, just as the Norwegian government prepares to make its first ever withdrawals to plug budget deficits. The $860 billion fund lost 273 billion kroner ($32 billion) in the third quarter, or 4.9 percent, the Oslo-based investor said on Wednesday. Its stock holdings declined 8.6 percent, while it posted a 0.9 percent gain on bonds and a 3 percent return on real estate. It was the first back-to-back quarterly loss in six years. “We have to expect fluctuations in the value of the fund when there are large movements in the market,” said Yngve Slyngstad, its chief executive officer. “With the fund as big as it is today, this can have a considerable impact in the short term. The fund has a long-term horizon, […]