Oil calls for oil, which seems logical since crude oil is usually found in relatively nearby formations or accumulations. But this case is somewhat unique, since the oil discovery announced this week took place in a place known disparagingly as the “dry belt” precisely because it was thought to have no pockets. of oil or gas, that is to say, it was “dry”. For years, this piece of the North Sea has been “ignored” by oil companies. However, once the juiciest areas were exhausted, exploration and drilling ships began to look at this “dry belt” with a different look. The last chocolate, even if it is the bitter orange that no one wants, has a special appeal, since it is the last. Something similar happened with the “dry belt”.
Norway has the largest proven oil reserves in Western Europe, with just over 8 billion barrels of crude oil. However, rapid extraction of the most profitable deposits is beginning to cap Norway’s crude oil production, which is now struggling to keep oil pumping at around two million barrels per day. Large fields like Johan Sverdrup have reached peak production (755,000 barrels per day) and are now entering a slow decline, heralding the beginning of the end of an era in Norway. Fortunately, the Nordic country’s government has accumulated most of the this wealth in a sovereign fund very well managed and has assets of approximately $1.4 billion.
Just in case, Norway continues to search for oil in the North Sea in an attempt to delay the inevitable as long as possible. In these searches which do not seem to generate great joy, this curious event occurred. A new discovery of oil in an area where we thought there was nothing. Additionally, the crude oil found is in a shallower area of the seabed than previously thought. “Black gold” was discovered in an unexpected place.
Norwegian company DNO has discovered oil in a new field within license PL1086, in which the company has a 50% operational stake (the remainder is held by Aker BP (20%), Petoro (20%) and Source Energy (10%). According to DNO’s preliminary estimates, the light oil discovery, made in good reservoir quality Paleocene sandstones, contains recoverable gross resources of between 27 and 57 million. barrels of oil equivalent (boe).
The starting point for something bigger
“As this is the first time that oil has been discovered in the Vale Formation in the Norwegian sector, this discovery is considered a starting point,” adds the press release published on the company’s website. After discovering oil in an unexplored area, it could be the start of something much bigger or maybe it’s all just a coincidence. From now on, companies will view the so-called “dry belt” differently. “The well had two exploration targets, a deeper prospect (Falstaff) where no reservoir was found and a shallower prospect (Othello) where a 16 meter net oil reservoir was found. This discovery was subsequently been confirmed by a deviation”. The discovery was made with a jack-up rig or mobile oil rig.
Surprisingly, the most superficial explorations have discovered oil east of the basin known as the “dry belt”, wherever it was thought that there was no oil of sufficient quality to be extracted and marketed. “In recent years, the industry has shown little interest in exploration in this area, disparagingly called ‘the dry belt,’” the DNO said in the statement. “With its partners, DNO is already planning to connect the discovery to existing infrastructure, with ConocoPhillips’ Ekofisk Center approximately 40 kilometers to the west and the Valhall Center operated by Aker BP approximately 55 kilometers to the southwest.”
Norway and oil: a “love story”
Although these discoveries are already minor, Norway’s oil history is not in vain. It’s a kind of exciting story that combines skepticism, daring and an unexpected success that completely transformed the economy and the destiny of the country. In the 1950s, few people could have imagined that the seabed along the Norwegian coast hid untold riches. Even the Geological Survey of Norway has ruled out the possibility of finding large quantities of hydrocarbons, according to official government pages. However, the discovery of the gigantic Groningen gas field in the Netherlands in 1959 ignited a spark of curiosity, pushing foreign companies to explore the North Sea. In 1963, Norway proclaimed sovereignty over the continental shelf, laying the legal foundations for an industry that, at the time, seemed more like a dream than a reality.
The historic turning point came in December 1969, when the Phillips Petroleum company announced the discovery of Ekofisk, one of the largest offshore oil fields ever discovered. This discovery marked the beginning of the golden age of Norwegian oil. Production at Ekofisk began in 1971, and in the following years other iconic fields such as Statfjord, Troll and Gullfaks were added, cementing Norway’s reputation as a global energy power. The country not only took advantage of these resources, but also developed a unique state strategy: retaining 50% ownership in all production licenses.guaranteeing that the riches of the subsoil will directly benefit their society. This vision resulted in the creation of companies such as Statoil (now Equinor) and the direct state participation model, pillars of the country’s economic success.
Over the years, Norway has expanded its oil industry into the Norwegian Sea and the Barents Sea, areas which began producing in the 1990s and 2000s respectively. Although the initial large deposits show signs of decline, new, smaller deposits kept production stable, diversifying operations and extending the life of the industry. This transition has been managed using a sustainable and strategic approach, allowing oil and gas to remain a key source of revenue without compromising the ecological balance of the country. This latest oil discovery in the “dry belt” This is yet another example that the country’s industry is not giving up in the face of evidence that “easy” oil is running out. Who knows if this time the same thing as 70 years ago will not happen again and where we thought there was no oil, a treasure will end up being discovered.
