Norway's Gas Output Beats Forecast in March
Norwegian gas extraction beat forecasts by 2.3% in March, averaging 344.4mn m3/day, the Norwegian Petroleum Directorate (NPD) reported on April 17. This represents a 1.1% growth month on month (m/m), but a 2% decline year on year (yr/yr).
Liquids production averaged 2.098mn b/d last month, including 1.682mn b/d of oil. This was 2.9% lower than forecast and down 3% m/m. Output surged 16.1% yr/yr, however, thanks to the launch of the Johan Sverdrup oilfield in the North Sea last autumn.
Equinor and its partners announced on March 30 that Sverdrup would reach its first-phase capacity in May, rather than in the summer as originally planned. This capacity will also be 30,000 b/d higher than initially though, at 470,000 b/d.
Sverdrup needs only $20/b oil to breakeven, meaning that it is still profitable following the oil price collapse. Dated Brent is currently trading at $27.74, down 3.6% since the previous close of trading, while West Texas Intermediate is down 8.1% at $20.2. Oil output might change if Norway imposes a cut on oil production to help prevent prices sliding any further, as it has said it is considering. But it has not said how it would or could do this, as a member of the OECD: the energy ministry told NGW it was too early to comment.