Oil production slumps, but Norway remains a strong natural gas producer

Jan. 20 (UPI) -- Norwegian government data published Friday show crude oil production levels were far below expectations, though natural gas performed better than expected, solidifying the Nordic country as a premier supplier for Europe.

Norway, along with the likes of the United States and some Middle East producers, is supporting energy security in a European economy looking to do away with Russian products. Western economies last year imposed a ban on imports of waterborne crude oil from Russia and a moratorium on refined petroleum products goes into effect next month.

The Norwegian Petroleum Directorate, the nation's energy regulator, estimates that natural gas accounts for more than half of all of the fossil fuels pulled from Norwegian waters.

Torgeir Stordal, the general director at the NPD, said in early January that Norway has fortified itself as a long-term, predictable supplier to the European economy and productivity in 2023 should not disappoint.

The emphasis on natural gas may help explain recent production figures from the NPD. Data show crude oil production in December averaged 1.7 million barrels per day, which was about 10% below expectations. Natural gas production of around 12 billion cubic feet per day on average was almost 2% better than expected, however.

NPD data came two days after Norwegian energy company Equinor revealed its first commercial natural gas discovery in its territorial waters for the year.

Norway also hosts the Hammerfest liquefied natural gas plant, among the largest in the region. Under normal conditions, it represents about 5% of total Norwegian natural gas exports, which is enough to satisfy the demand from about 6.5 million average European households.

European gas storage levels are on the decline, but adequate. Data show gas storage levels are at 80% of their peak capacity, down from 83% at the start of the year.