Industry analysts consider the NCS a mature oil producing region. Most of the country’s flagship oil fields have peaked, with production remaining flat or declining slightly. For example, the Oseberg complex produced 503,000 bbl/d in 1993, but only 229,000 bbl/d during the first five months of 2005 (see chart).

Oil Companies are still discovering oil in the NCS, but none of the recent finds have been significant. In 2003, the Norwegian Ministry of Petroleum and Energy (MPE) reported that oil companies made eleven new discoveries, potentially holding 189 to 566 million barrels of oil, far less than what the country produced for the year.

There are about 60 oil and natural gas discoveries that are still undeveloped, representing about 4.4 billion barrels of liquids and 16 trillion cubic feet (Tcf) of natural gas. Drilling activity on the NCS in 2004 was the lowest it has been in a decade. At the time, many blamed the low drilling rate on a four-month rig strike; however, during the first half of 2005, the rate of exploratory drilling was similar to that of 2004.

In June 2004, the Norwegian government held its 18th licensing round, covering 46 blocs representing a mix of unexplored areas and territories amongst established reserves. In June 2005, the government launched its 19th licensing round. This round included 64 blocks, focusing on the Norwegian and Barents Seas. There is particular excitement surround the Barents Sea acreage, since there have been no licenses granted there since 1996.

Source: Energy Information Administration