Valuable Gas Resources Untouched

Source: www.gulfoilandgas.com 12/5/2023, Location: Europe

The Norwegian Petroleum Directorate (NPD) has conducted a mapping of gas resources that, for various reasons, have yet to be developed. Several of these discoveries could be produced in a manner that is profitable from a socio-economic perspective.

About 65 per cent of the overall gas resources on the Norwegian shelf have not yet been produced. Some of the remaining gas resources face a variety of challenges that could complicate production.

The NPD has mapped the gas resources which lack concrete development plans, and has also explored which measures could potentially be implemented to facilitate their development.

Challenging resources

'Despite gas having a significantly higher recovery rate than oil, we'll never be able to produce all the gas. There are normally good reasons for low recovery rates in gas fields. We believe that the licensees are doing a good job to maximise recovery rates. It's challenging to extract extra gas beyond this,' says Kjersti Dahle, the NPD's Director for Technology, analyses and coexistence.

She goes on to say that, 'identifying which gas resources are difficult to develop, and what's needed to ensure that the resources are produced, gives us a sound basis for dialogue and potential measures along with the industry so that these resources can be recovered'.

The background here is that, with the current plans and projects, the NPD expects gas production on the Norwegian shelf to be maintained at a high level over the next five years. After this, production is expected to decline at a fairly rapid rate.

'There are considerable gas resources in discoveries and fields in operation. It makes sense to think that higher gas prices can drive necessary technology development, coordination and new infrastructure in order to realise this gas, as long as there is the will and ability to do this,' Dahle says.

Significant uncertainty

As of 31 December 2022, there were 84 gas discoveries on the shelf with 1273 GSm3 of gas in place (GSm3 – one billion standard cubic metres). These resources are found in reservoirs with different degrees of complexity, which has made them difficult to develop.

The NPD's calculations show a significant value potential for many of these discoveries, but it is highly uncertain how much of this can be produced.

This is due to challenges in the subsurface, such as tight reservoirs, high pressure and temperature, challenging gas quality and/or low pressure. Export options, cost level and future gas prices will also affect which resources can be developed.

Lack of gas infrastructure capacity is an issue in the Barents Sea, since Melkøya is fully booked until after 2040. Here, there is clearly a need for coordination and new capacity in order to transport and export the gas.

The NPD's resource classification system is used for petroleum reserves and resources on the Norwegian shelf. All discoveries used in this mapping effort are in classes 4-7.


Sierra Leone >>  2/21/2024 - Sierra Leone (PDSL), will promote the country’s upstream opportunities and available blocks at the upcoming Invest in African Energy (IAE) forum in Pa...
Colombia >>  2/20/2024 - Arrow Exploration Corp. (AIM: AXL; TSXV: AXL) ("Arrow" or the "Company"), the high-growth operator with a portfolio of assets across key Colombian hyd...

Pakistan >>  2/19/2024 - The Oil and Gas Development Company Limited (OGDCL) is honored to announce a significant gas-condensate discovery from its exploration efforts at Khar...
Namibia >>  2/16/2024 - The sixth edition of the Namibia International Energy Conference takes place April 23-25 in Windhoek.

Namibia expects to produce first oil ...


Norway >>  2/16/2024 - Exploration well 35/11-28 S "Harden sør" in the North Sea proved to be dry. Equinor Energy AS is the operator of production licence 248 C.

...

Norway >>  2/16/2024 - The Norwegian Ocean Industry Authority (Havtil) has granted Equinor consent for exploration drilling in the North Sea.

Operator: Equinor




Gulf Oil and Gas
Copyright © 2023 ICT All rights reserved. - Terms of Service - Privacy Policy.