What Oil Crisis? Arctic Drilling Off Norway Set for Record

What Oil Crisis? Arctic Drilling Off Norway Set for Record

Explorers look set to drill a record number of wells in Norway’s Arctic waters this year, undeterred by oil prices apparently stuck below $60 a barrel.

After making a discovery of as much as 100 million barrels of oil in the Barents Sea, Lundin Petroleum AB said on Monday that it wants to squeeze two more exploration wells into its program this year, even if it means hiring an additional rig. That could push the total number of wells in the area to 16, two more than the record in 2014, according to forecasts from the Norwegian Petroleum Directorate, the industry regulator, and Rystad Energy AS, an Oslo-based consulting firm.

The Norwegian Barents may contain as much as half the country’s unexplored resources, according to the NPD. Yet with crude still trading at half the highs it reached in 2014, the record drilling campaign sounds counter-intuitive. Elsewhere in the Arctic companies such as Royal Dutch Shell Plc are scrapping projects, and in Norway as a whole, the NPD forecasts an 11-year low in exploration activity. Read More…

Credit By : Bloombergquint.com

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