Record-high gas production in 2024

"Since the transport of gas from Russia through Ukraine ended at year-end, gas from Norway has become even more important," says Torgeir Stordal, Director general of the Norwegian Offshore Directorate.

Gas production reached a record-high in 2024. A total of 124 billion standard cubic metres (Sm3) was sold. In comparison, 122.8 billion Sm3 of gas was sold in 2022.

"Electricity exports are a hot topic these days. Energy content of our gas exports are about 100 times larger than net electricity export," he says.

Summarising the year on the shelf

"The Shelf in 2024" is a summary of activity on the Norwegian continental shelf (NCS) over the past year: Exploration results and annual production figures, and investment and production forecasts for the next five years.

Overall production will remain at a high and stable level. In 2024, it reached about 240 million standard cubic metres of oil equivalent (mill scm o.e. – 1510 million barrels o.e). This is the highest level since 2009.

Moving forward, production is expected to remain at a stable, high level before a gradually decrease is expected toward the end of the 2020s.

Exploration activity was also high in 2024. Most of the discoveries are small, but several are being considered for development tied back to existing fields.

"We've seen that even small discoveries can generate substantial values. Our analyses of exploration activity on the NCS also show that exploration is highly profitable for the community," Stordal says.

The investment level on the NCS is still high, and the Norwegian Offshore Directorate expects a number of new development plans in the upcoming years.

Exploration and investments are needed

The Directorate expects overall production to decline in the later 2020s. In order to slow this decline, exploration will need to take place close to infrastructure and in more frontier areas, in addition to more investments in fields, discoveries and infrastructure. Failure to invest will lead to rapid dismantling of the petroleum activities.

There is significant and rising interest in secure storage of CO2 on the NCS. A total of 11 licences have been awarded; 1 exploitation licence and 10 exploration licences. Offers for two additional exploration licences were published in December, with awards expected in 2025.

In 2025 the Norwegian Offshore Directorate will continue mapping seabed mineral resources on the seabed and the environmental conditions in relevant areas. The authorities want this to be an incremental development and have adopted a precautionary approach to the activity. Acquiring additional knowledge is an important part of this effort.