• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 35 mins Chicago Threatens To Condemn - Possibly Demolish - Churches Defying Lockdown
  • 3 hours The CDC confirms remarkably low coronavirus death rate. Where is the media?
  • 5 hours COVID 19 May Be Less Deadly Than Flu Study Finds
  • 18 mins Let’s Try This....
  • 2 hours New Aussie "big batteries"
  • 18 hours Monetary and Fiscal Policies in Times of Large Debt:
  • 4 hours China to Impose Dictatorship on Hong Kong
  • 6 hours 60 mph electric mopeds
  • 10 hours Iran's first oil tanker has arrived near Venezuela
  • 13 hours Nothing can shake AMLO’s fossil-fuel fixation
  • 19 hours US-China tech competition accelerates: on Friday 05/15 new sanctions on Huawei, on Monday 05/18 Samsung chief visits China
  • 1 day Fed Says It Will Begin Buying Corporate-Debt ETFs on Tuesday
Big Oil’s Best Survival Strategy

Big Oil’s Best Survival Strategy

The oil industry is facing…

Bitcoin’s Shocking Energy Consumption

Bitcoin’s Shocking Energy Consumption

Bitcoin’s energy consumption has been…

Norway Suffers Setback In Quest For Arctic Oil Discoveries

One of the most active companies on the Norwegian Continental Shelf, Lundin Petroleum, said on Monday that it had revised downwards its resource estimate for a recent discovery in the Barents Sea, and that it no longer considers that a stand-alone development would be commercial.

Although Lundin Petroleum reported overall increased reserves and contingent resources as of December 31, 2019, its estimate for the Alta discovery in the Arctic waters of the Barents Sea “has been adjusted downwards,” based on the high specification 3D seismic survey and extensive data and analysis from the well drilled for the extended well test conducted in 2018.  

Initially, Lundin had expected that the combined gross resource range for the Alta discovery and nearby Gohta discovery was at between 115 and 390 million barrels of oil equivalent (MMboe). As of September 2018, the development concept for Alta was a subsea field development connected to a standalone floating production and storage vessel.

But now, Lundin is revising down its resource estimate, although it did not say by how much, and notes that “a standalone development of the Alta and nearby Gohta discoveries is no longer considered to be commercial.”

The options for development now include a subsea tie-back development to either the Johan Castberg oilfield or another future host development in the area, Lundin said on Monday.

Related: Canada Faces A New Oil Price ‘’Blowout’’

The decreased resource estimate is another blow to the hopes of the Norwegian Petroleum Directorate (NPD) that major discoveries in the Barents Sea could sustain Norway’s oil and gas production into the next decades.

The operators offshore Norway are exploring for oil and gas in both mature areas and in frontier regions in the Barents Sea in the hopes of finding the next giant Johan Sverdrup, which started pumping oil in early October 2019.

Johan Sverdrup will boost Norwegian oil production through the mid-2020s, but the country will need more and larger oil discoveries soon in order to stave off another drop after the mid-2020s.

According to NPD, 48 percent of resources in the North Sea, the Norwegian Sea, and the Barents Sea have been produced. In its annual report for 2019 last week, NPD lowered expectations for the Barents Sea Southeast due to dry wells, but lifted expectations for undiscovered resources in the central parts of the Barents Sea, due to the mapping of several prospects and good work in production licenses.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

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