1 – Resource Accounts

Shortcut:

• 1.1 Oil and gas resources on the Norwegian continental shelf
• 1.2 Oil and gas resources in Norwegian sea areas

Primary trends:

• Minor reduction in total resources
• Good growth in gross reserves
  • This year, there is an increase in gross reserves (reserves before deducting total production) of 262 million Sm³ oe compared with the accounts for 2021. The increase can generally be explained by the investment decisions made and multiple plans for development and operation (PDOs) submitted in 2022.

1.1 Oil and gas resources on the Norwegian continental shelf

Oil and gas resources are discovered, and discoveries are developed as fields if they are economically and technologically viable, and the oil and gas is produced and sold. This results in dynamic resource accounts that change from year to year.

In the Resource Accounts as per 31 December 2022 (Excel), the estimates for the overall resource volumes (including what has been sold and delivered) on the Norwegian shelf are

• 8,247 million Sm³ oil
• 6,606 billion Sm³ gas
• A total of 15,767 million Sm³ oe
• This is a reduction of 97 million Sm³ oe compared with 2021The total estimates for oil, liquids (sum of oil, condensate and NGL), gas and oil equivalent are shown in Table 1-1 along with changes from the Resource Accounts in 2021. Discovered resources have been reduced by 72 million Sm³ oe compared with last year's Accounts. Remaining discovered resources have been reduced by 303 million Sm3 oe, including last year's total production of 231 million Sm3 oe. The reduction amounts to ten per cent for oil and six per cent for gas.

The volumes are listed in oil equivalent (1,000 Sm³ gas = 1 Sm³ oe).

Table 1-1 Expected values for petroleum resources as per 31 December 2022 with changes from 2021. (Liquids are oil, condensate and NGL).

The table divides the petroleum resources into resource categories, reserves, contingent resources and undiscovered resources. The categories are explained in the report's appendices. Opened areas are areas opened for petroleum activities.

The illustration below shows the change in overall resources for 2022. Contingent resources (no decision to develop) in fields and discoveries have been reduced by 139 million Sm³ oe and 196 million Sm³ oe, respectively. The reduction for contingent resources in discoveries was primarily caused by maturing resources into reserves, which means that an investment decision has been made for the discoveries. Investment decisions for projects are also the primary cause of the reduction in contingent resources in fields, in addition to a few revised projections for individual projects. Undiscovered resources have been reduced by 25 million Sm³ oe, and this was primarily due to the exploration activity. The overall resource volume has been reduced by 97 million Sm³ oe.

Figure 1-1 Changes in overall resources for 2022, distributed across main categories in the Resource Accounts.

The Norwegian Petroleum Directorate estimates the volume of undiscovered resources both in acreage opened for petroleum activities, as well as in unopened acreage. These estimates contain the volumes of petroleum that we estimate could be extracted from deposits that have yet to be proven through drilling.

The distribution of remaining resource volumes into resource categories along with the volume sold and delivered as per 31 December 2022 is shown in Figure 1-2. The middle of the columns shows the expected recoverable petroleum. Uncertainty in the overall estimates is illustrated with a low estimate on the left and a high estimate on the right in each column.

The pie chart on the right of the figure shows that 52 per cent of the expected recoverable resources on the shelf have been produced, and that 24 per cent of the overall resources have yet to be discovered. Just like last year, 17 per cent of the overall resources are reserves. In 2022, the authorities approved eight plans for development and operation (PDOs), and five PDO exemptions. The companies submitted 18 plans for authority approval and six applications for PDO exemptions which are not approved at year-end.

Figure 1-2 Petroleum resources and uncertainty in the estimates as per 31 December 2022.

 

1.1.1 Resource development

Resource estimates change over time. New information and knowledge change the expected value and uncertainty associated with the overall resources. As resources are mapped, proven, matured and finally produced, their status changes. Figure 1-3 below shows the changes in the estimates for liquids and gas over the last ten years.

Figure 1-3 Development in expected value for liquids and gas resources over the last ten years. Liquids on the left and gas on the right.

There has been a steady increase over time in discovered resources for liquids and gas. Discovered liquids resources show a minor reduction from 2021 to 2022, and the most important reason for this is revised estimates for individual projects. The resource estimate for undiscovered resources increased in 2017 due to the inclusion of resources in the Barents Sea North.

1.2 Oil and gas resources in Norwegian sea areas

The three sea areas - the North Sea, Norwegian Sea and Barents Sea - are different both as regards geology, resource base, maturity and scope of infrastructure and knowledge. An overview of resources in the three areas can be found in the Resource Accounts as per 31 December 2022 (Excel) link.

There has been petroleum activity in the North Sea since 1965. The Norwegian Sea and Barents Sea (areas north of the 62nd parallel) were opened for petroleum activities in 1980. The remaining resources and the distribution between discovered and undiscovered resources in opened and unopened areas, respectively, therefore differ between the three areas. The expected estimates can be found in Figure 14, which shows the distribution for liquids and gas, respectively. The uncertainty in the volume estimates declines as the areas mature.

In the North Sea, the majority of oil and gas is defined as reserves, which means that they have approved plans for recovery. Of the remaining resources in the North Sea, 64 per cent are classified as reserves, of which 49 per cent is liquids and 51 per cent is gas. Reserves <a name="_Toc127235041">Resource development</a>accounted for 60 per cent of the remaining resources in the North Sea last year.

In the Norwegian Sea, reserves account for 35 per cent of the remaining resources, which are distributed between 32 per cent liquids and 68 per cent gas. The undiscovered resources make up the largest share of the remaining resources with 51 per cent.

The majority, 84 per cent of oil and gas resources in the Barents Sea, are classified as undiscovered. Vast areas in the Barents Sea have yet to be opened for petroleum activity, and this is where we find the greatest expected value for undiscovered resources.

Figure 1-4 Distribution of remaining liquids and gas resources (expected values) distributed by sea area and resource category. Liquids resources are shown in green and gas resources in red.