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Oil firms are now expected to drill just 30 exploration wells off the cost of Norway in 2020, down from 57 last year and sharply lagging original projections of around 50 wells, the Norwegian Petroleum Directorate (NPD) said on Tuesday.
“The decline in demand for oil and lower prices have led oil companies to reduce their exploration budgets for the year and postpone a number of exploration wells,” the NPD said in a statement.
Norway, which last year marked the 50th anniversary of its first oil discovery, has doubled down on a strategy to extend the industry’s lifespan, offering vast new acreage for firms to explore despite rising concern over global warming.
“Without new discoveries, oil and gas production could decline rapidly after 2030,” the NPD’s Director of Exploration, Torgeir Stordal, said.
Western Europe’s largest petroleum producer now believes yet-to-be-found resources beneath its seabed amount to 3.9 billion cubic metres (bcm), or 24.5 billion barrels of oil equivalent, down from around 4 bcm two years ago, the regulator said.
But to find the resources, exploration must continue at a high pace, the NPD said.
