Denmark Oil and Gas Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
The market is segmented by Sector (Upstream, Midstream, and Downstream)
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Scope of the report
Key Market Trends
TABLE OF CONTENTS
2016 - 2026
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The Denmark oil and gas market is expected to grow at a CAGR of more than 0.7% during the forecast period of 2020-2025. Factors such as increasing energy demand and ongoing offshore exploration and production projects are expected to drive the market significantly during the forecast period. On the other hand, as most of the fields are in the maturing phase, the production of oil and gas is expected to decline in the coming years. Moreover, the global Coronavirus pandemic resulted in a reduction in oil demand, which is also expected to restrain the market growth in the forecast period.
The upstream sector is expected to dominate the oil and gas market in Denmark. With ongoing and upcoming offshore projects, significant growth is estimated in the forecast period.
With the redevelopment of the Tyra field in the Danish North Sea started in 2018 and completion expected to be done by 2022, production is expected to continue beyond the forecast period. Tyra field is expected to create vast opportunities for oil and gas players in the future.
On 22 February 2018, the Danish government announced that no new oil and gas licenses would be awarded for onshore areas of Denmark and in the inner Danish waters. With this, only offshore oil and gas region is expected to drive the market in the future.
Scope of the report
The Denmark oil and gas market report includes:
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Key Market Trends
Upstream Operations to Dominate the Market
Denmark’s hydrocarbon production is primarily from offshore. Primary production comes from crucial developments such as Dan and Halfdan in the Central North Sea.
The existing offshore fields are mature; the plan of the Danish government to redevelop the Tyra field in 2018 is expected to drive the declining market of oil and gas production in the country.
In 2018, Deutsche Erdoel AG started drilling operation for high-pressure, high temperature well in the North Sea. The two licenses were awarded in 2016, to prove the presence of oil-bearing sand in the region.
The production of crude oil and natural gas is declining continuously, with 167 thousand barrels in 2014 to 116 thousand barrels in 2018. In contrast, natural gas has shown a decline with 4.8 billion cubic meters in 2014 and 4.3 billion cubic meters in 2018.
Although the Danish government is shifting towards renewable energy, with new operations in offshore, oil and gas market can witness a gradual growth.
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Upcoming Projects to Drive the Oil and Gas Market
In 2019, the Danish government approved the construction of the offshore part of the Baltic pipeline project. With the completion of the project, natural gas produced from Norway can be delivered to Poland and Denmark.
As of 2018, Denmark has a pipeline distribution network of 17000 km, and around 400,000 customers, households, and companies are connected to this network. With the growth in demand for natural gas, the network is expected to grow in the forecast period.
In January 2019, total reserves and contingent resources in Denmark were estimated to be 139 million cubic meters, trailing only the United Kingdom and Norway in Europe.
The consumption of petroleum products is expected to grow in the forecast period, with an increased capacity of refining throughput. The capacity rose 139 thousand barrels in 2014 and 152 thousand barrels in 2018.
With several mergers and acquisitions ongoing in Denmark oil and gas market, along with The Danish government transforming the oil and gas market, growth is anticipated in the forecast period.
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The Denmark oil and gas market is partially consolidated. Some of the major companies include Total SA, Royal Dutch Shell PLC, Equinor ASA, Norwegian Energy Company ASA, Energinet DK, and Gaslager A/S.