• 4 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 7 minutes Middle East on brink: Oil tankers attacked off Oman
  • 11 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 14 minutes The Latest: Iranian FM Says US Cannot Expect To ‘Stay Safe’
  • 17 mins The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 2 hours Coal Boom in Asia is Real and a Long Trend
  • 2 hours The Plastics Problem
  • 17 hours China's President Xi To Visit North Korea This Week
  • 7 hours Hydrogen FTW... Some Day
  • 9 hours GM Considering Electric Hummer
  • 21 hours OPEC, GEO-POLITICS & OIL SUPPLY & PRICES
  • 19 hours Forbes: Giant Floating Solar Farms Could Extract CO2 From Seawater, Producing Methanol Fuel.
  • 6 hours As Iran Nuclear Deal Flounders, France Turns To Saudi For Oil
  • 13 hours The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 23 hours Fareed Zakaria: Canary in the Coal Mine (U.S. Dollar Hegemony)
  • 23 hours Why Is America (Texas) Burning Millions of Dollars Per Day Of Natural Gas?
  • 21 hours Hormuz and surrounding waters: Energy Threats to the World: Oil, LNG, shipping markets digest new risks after Strait of Hormuz attack
Alt Text

BP: Petrochemicals Drive U.S. Oil Demand Boom

The United States saw its…

Alt Text

Small Crude Build Sends Oil Lower

Oil prices continued to fall…

Alt Text

Russia Is Silently Preparing For An OPEC+ Deal Extension

Russia’s largest oil producer Rosneft…

Andy Tully

Andy Tully

Andy Tully is a veteran news reporter who is now the news editor for Oilprice.com

More Info

Trending Discussions

Statoil Hits North Sea Oil Bonanza In Abandoned Field

When the Norwegian energy company Norsk Hydro explored a prospective oil well in the North Sea in 1992, it found only an estimated 6 million barrels of crude, then abandoned it. Now Norway’s energy giant Statoil says it’s found more than 10 times that amount in the well.

Statoil announced Oct. 21 that it has found between 30 million and 80 million barrels of recoverable oil at the site, named Well 25/8-18 S, off the southwestern coast of Norway. What makes the discovery more attractive is that it’s close enough to the Grane oil field – just four miles away – that the two can share some drilling resources, making extraction less expensive for Statoil.

“These [newly discovered] barrels are very profitable,” Trond Omdal, an analyst with Pareto Securities, told Reuters. “You can use the existing installation [at Grane] and extend the life of it.” In its announcement, Statoil said it is considering doing just that.

Related: How Oil Platforms Increase Fish Populations

May-Liss Hauknes, Statoil’s vice president for exploration in the North Sea, said in a statement that the discovery “is a result of a recent re-evaluation of the area” by means of “new seismic and improved subsurface mapping.”

“We are pleased with having proved new oil resources in the Grane area,” Hauknes’ statement said. “It provides high-value barrels that are important for extending the production life of existing installations.”

The Norwegian Petroleum Directorate says the Grane field, which has been in operation since 2003, was the country’s third most productive oil field in 2013 at about 95,000 barrels per day.

Grane is in the Utsira High area of the North Sea, the site of Norway’s biggest oil find in decades, the Johan Sverdrup oil field. Statoil is in charge of operations at Grane.

Statoil owns 57 percent of Grane, while the Norwegian energy licensing company owns 30 percent and Exxon Mobil Corp. has a 13 percent share. The Norwegian state-controlled company found as much as 33 million barrels of oil in the same formation in a neighboring license in 2013.

Related: Drowning In Oil Again

The discovery of plentiful oil in Well 25/8-18 S could help shore up Statoil financially. Like other energy companies, stock in Statoil has been taking a beating recently.

Part of the reason for this decline has been a weakening global economy, a rise in the value of the U.S. dollar and a glut of oil and natural gas, thanks in large part to burgeoning American production due to new extraction techniques, including horizontal drilling and hydraulic fracturing, or fracking.

Of particular concern are weakening economies in countries including Germany and China, whose industrial bases have lagged recently, putting further downward pressure on the prices of crude and gas.

The announcement of the contents of Well 25/8-18 S, though, immediately pushed Statoil’s shares up by 0.2 percent in early trading.

By Andy Tully of Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment





Oilprice - The No. 1 Source for Oil & Energy News