Market Trends of Denmark Oil and Gas Industry
This section covers the major market trends shaping the Denmark Oil & Gas Market according to our research experts:
Upstream Operations to Dominate the Market
- Denmark's hydrocarbon production is primarily 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 is expected to drive the declining oil and gas production market in the country.
- Crude oil and natural gas production is declining continuously, from 167 thousand barrels in 2014 to 65 thousand in 2021. Similarly, natural gas has declined, with 4.8 billion cubic meters in 2014 and 1.3 billion cubic meters in 2021.
- Although the Danish government is shifting towards renewable energy, the oil and gas market can witness gradual growth with new operations in the offshore sector.
- Therefore, due to the aforementioned factors, the upstream sector is expected to dominate the market.
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Upcoming Projects to Drive the Oil and Gas Market
- In recent years, the country's natural gas production has declined significantly to 1.3 billion cubic meters in 2021, and there have been very few oil and gas projects in the country. Additionally, the country's government, in December 2020, canceled all upcoming oil and gas projects. However, after the Russia-Ukraine conflict, Europe's energy supply was severely impacted, leading to the rejuvenation of several oil and gas projects.
- In April 2022, the country's President announced that the country's government is looking forward to increasing domestic natural gas production in the North Sea. This was aimed at reducing the country's dependence on Russian energy sources. In 2021, the country's government unveiled plans to reach 3.2 billion cubic meters of peak gas production capacity in 2027.
- Tyra field, Denmark's largest gas field, is integral to the Danish gas industry, with more than 90% of the country's production processed through its facilities. The field closed in September 2021 for redevelopment work due to seabed subsidence, and production is expected to restart by mid-2023.
- In September 2022, Ineos announced that the company is to develop the Solsort West field in the North Sea in Denmark after the country's first approval of such a project in years. Danoil and Nordsøfonden are Ineos's partners in the project, and the first oil and gas production is expected in the fourth quarter of 2023.
- Therefore, upcoming new oil and gas projects are expected to drive Denmark's oil and gas market during the forecast period.
