Market Trends of Norway Oil and Gas EPC Industry
This section covers the major market trends shaping the Norway Oil & Gas EPC Market according to our research experts:
Upstream Sector to Dominate the Market
- Norway's oil and gas EPC market has been primarily driven by the upstream sector due to the increasing exploration and production activities in the Norway offshore region. In 2021, investment in ongoing field development accounted for USD 1.73 billion.
- The Norwegian shelf's exploration expenses came to roughly USD 2.73 billion in 2021. There were 40 exploratory wells spudded in all, 31 wildcat wells, and nine evaluation wells. Eighteen discoveries were made in 2021 as a consequence of exploration drilling.
- In December 2022, The Norwegian Ministry of Petroleum and Energy received a plan for development and operation (PDO) from Equinor for the Verdande development offshore Norway. The subsea development, intended to improve oil output at the Norne production vessel and cost a total of USD 478.4 million, is scheduled to be put into service in the fourth quarter of 2025.
- Moreover, in July 2022, in order to improve gas output from this field, Shell acquired authorization from the Norwegian government for a development plan associated with its gas subsea compression project in the Norwegian Sea.
- The Barents Sea is growing in prominence with upgrades to undiscovered resource estimates, and the region is thought to hold some 49% of Norway's potential resources. The country has untapped potential for undiscovered resources, which is expected to provide enormous opportunities for the market studied in the near future.
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Development of New Oilfields Infrastructure to Drive the Market
- The major oilfields in the country are reaching their maturity, and as a result, since 2016, the oil production of Norway has declined significantly. However, the country's oil production increased by about 1.1% to 2,025 Thousand barrels daily in 2021 and is expected to increase further.
- In recent years, the country has made some major oil discoveries. In order to offset the decline in production from matured oilfields, upstream oil and gas companies are investing heavily in developing these new oilfields.
- Moreover, according to the Norwegian Petroleum Directorate, there are around 3.8 billion standard cubic meters of recoverable oil equivalents in undiscovered resources on the Norwegian shelf. The Norwegian parliament has made most of the North Sea, Norwegian Sea, and Barents Sea South (including Southeast) available for oil exploration. Thus, with increasing exploration, the development of new oil field infrastructure is expected to grow in the forecast period.
- Some of the major fields expected to attract investments during the forecast period are: the Johan Sverdrup oilfield has been the largest oilfield in the country since 1980. The companies operating in the field, i.e., Equinor, Lundin Norway, Petoro, Aker BP, and Total, have announced an increase in resource estimates.
- Hence, during the forecast period, investments in new oilfields are expected to be the biggest and the most dominating driver for the Norway upstream oil and gas EPC market.
