Strong increase in added value in oil industries

Fuelled largely by the significant increase in petroleum production and prices in 1996,
added value in the oil industries rose 20.4 per cent from 1995 to 1996, to NOK 147.9 billion.

The petroleum industry comprises operator and licensee activities associated with the extraction and pipeline transport of crude oil and natural gas, associated services and oil drilling on a contract basis. Added value is a term denoting the creation of value, which is mainly determined by three factors: production, prices and inputs.

Extraction contributed to the increase

The extraction of crude oil and natural gas contributed most of the NOK 25.1 billion increase in added value in the oil industries from 1995 to 1996. Here, added value rose NOK 21.4 billion or 19.8 per cent. Relative growth, however, was even stronger for companies engaged in oil drilling on a contract basis and services purely connected with petroleum operations. Here, added value rose by fully 33.9 percent, or NOK 0.9 billion. The pipeline transport sector also had strong growth in added value, with 23.4 per cent or NOK 2.8 billion.

Higher market value

The market value of crude oil and gas production in 1996 is estimated at NOK 145.6 billion. This is an increase of NOK 27.2 billion or 23 per cent from the year before. Growth is mainly due to the surge in the production of crude oil including NGL (natural gas liquids) and condensate in combination with high prices. The production of crude oil including NGL and condensate climbed fully NOK 18.4 million tonnes of oil equivalents (mtoe), or 13.3 per cent from 1995 to 1996.

Sales prices of crude oil, NGL and condensate increased by 24.7, 39.3 and 15.3 per cent respectively in nominal terms, with the Heidrun and Troll Vest fields making the largest contribution to the value of the oil production. Both of these fields came on stream in the autumn of 1995. With regard to the largest fields (Statfjord, Gullfaks, Oseberg and Ekofisk), the market value of crude oil increased in all fields, although Oseberg was the only field showing an increase in production volume. The production of natural gas was 9.8 mtoe higher in 1996 than the year before, while the sales price of natural gas showed only a modest rise. Heimdal and Troll Øst produced the largest contributions to the upswing in the value of gas production.

New Statistics

Annual statistics for petroleum operations, 1996.
Statistics are published every year in the Weekly Bulletin of Statistics and in the Official Statistics of Norway (NOS) Oil and Gas Activity 3rd Quarter 1997. More information: Jørn Bugge, tel +47 21 09 47 67, e-mail: jbu@ssb.no or Lise Dalen, tel. +47 21 09 47 68, e-mail: lid@ssb.no. Attached tables are put on the Internet together with the article at http://www.ssb.no from the main point New Statistics.

Weekly Bulletin issue no. 42, 1997