Norwegian Oil And Gas Technology And Know-How Driving Deep Water Activity

Introduction

The Norwegian oil and gas industry has lasted for almost five decades, and the activity has established the petroleum sector as the most important industry in Norway, counting for more than 23% of the total value creation in 2012. The petroleum production on the shelf has added more than NOK 9000 billion to the country's GDP over the about 40 last years1. The value creation in the sector positions Norway in the top world ranking due to the significant trade surplus2.

Today 76 fields are in production and produced in 2012 about 1,9 mill barrels of oil per day and about 111 bill standard cubic meters (SM3) gas. Norway is ranked as the seventh largest oil exporter and the fourteenth largest oil producer in the world. In 2011 Norway was the third largest gas exporter and the sixth largest gas producer in the world.3

Yesterday Created Today

When they gave their opinion in connection with the UN Geneva conference concerning a law for the oceans in 1958, Norwegian geologists were quite clear that they did not believe that there would be oil or gas on the Norwegian continental shelf. Nevertheless, following a successful survey in Holland, US oil companies got permission to conduct geological surveys in 1962. At this stage Phillips Petroleum applied for exclusive rights to search for oil and gas in the Norwegian continental shelf. Instead Norway, following a declaration of the rights given in the Geneva convention in 1958, formed the Act of 21 June 1963 No. 12, which declared "The right to submarine natural resources is vested in the State" and that "The King may grant Norwegian or foreign persons ... to explore or exploit the natural resources." Following this law Norway divided the continental shelf in blocks and invited companies to apply for licenses.

In 1966 the first rig began drilling activities for Esso, but it was not before 23rd December 1969 that Phillips Petroleum discovered Ekofisk, the largest oil field ever found and in 1971 the first oil was produced. The field also contained gas, which later were piped to the continent.

In 1971 the Norwegian Parliament (Stortinget) prepared principles for the oil and gas industry, later referred to as the "10 oil commandments"4, which formed the basis for the future Norwegian politics on the sector:

National supervision and control must be ensured for all operations on the Norwegian continental shelf (NCS). Petroleum discoveries must be exploited in a way which makes Norway as...