Lower income and higher expenses for the extraction industries
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It comes as no surprise that the production value of the Norwegian oil and gas industry falls after the high point in 2018. Lower oil and gas prices, combined with lower production volume, are joined by higher intermediate consumption as value added falls dramatically in 2019.
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- Extraction and related services (archive)
Preliminary figures for extraction and related services show a decrease in production value of 18,5 per cent, from 786 billion in 2018 to 641 billion in 2019. The decrease comes as a result of lower oil and gas prices compared to last year, while the production volume continues to decline.
Figure 1. Value of production, intermediate consumption and value added. Total for the oil and gas industries
1991 | 1992 | 1993 | 1994 | 1995 | 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | |
Intermediate consumption | 26.099 | 27.592 | 31.87 | 30.103 | 28.437 | 34.019 | 33.633 | 38.824 | 40.557 | 34.933585 | 42.115952 | 52.570593 | 57.922229 | 59.16016 | 66.696745 | 81.435253 | 97.93932733 | 116.232113 | 140.402596 | 144.111294 | 150.715219 | 132.988 | 157.867188 | 149.533 | 140.237 | 120.477 | 104.191 | 123.567 | 135.037 |
Value added | 99.559 | 99.819 | 109.484 | 114.789 | 121.971 | 167.408 | 183.79 | 133.767 | 180.553 | 348.574276 | 331.416097 | 291.669933 | 306.826542 | 369.211246 | 479.526851 | 564.521782 | 512.124477 | 658.397979 | 481.644639 | 525.9819535 | 640.483157 | 689.148504 | 650.094278 | 637.707 | 523.529 | 428.206 | 525.219 | 662.789 | 505.836 |
Value of production | 125.658 | 127.411 | 141.354 | 144.892 | 150.408 | 201.427 | 217.423 | 172.591 | 221.11 | 383.507861 | 373.532049 | 344.240526 | 364.748771 | 428.371406 | 546.223596 | 645.957035 | 610.0638043 | 774.630092 | 617.225256 | 670.0932475 | 791.198376 | 811.393 | 807.963 | 787.236 | 663.736 | 548.682 | 629.409 | 786.356 | 640.872 |
Intermediate consumption has fallen every year from 2013-2017 before increasing in 2018. This trend continues as intermediate consumption increases by 9,3 per cent, from 124 billion in 2018 to 135 billion in 2019. As a result, value added falls even more. With ever lower production volumes, and uncertain future oil and gas prices, it will be important for companies to control intermediate consumption going forward.
Figure 2. Value added, by industry
1991 | 1992 | 1993 | 1994 | 1995 | 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | |
Extraction of oil and natural gas, incl. transport via pipelines | 99.56 | 99.82 | 107.52 | 112.64 | 119.37 | 163.74 | 177.56 | 126.21 | 171.96 | 342.16 | 322.31 | 279.73 | 295.86 | 359.29 | 465.22 | 546.65 | 491.69 | 633.14 | 441.89 | 486.93 | 600.98 | 648.08 | 600.91 | 587.25 | 473.64 | 389.63 | 493.173 | 636.973 | 467.395 |
Support activities for petroleum and natural gas extraction | 0.00 | 0.00 | 1.96 | 2.15 | 2.61 | 3.67 | 6.23 | 7.56 | 8.60 | 6.41 | 9.11 | 11.94 | 10.96 | 9.92 | 14.31 | 17.88 | 20.43 | 25.26 | 39.75 | 39.05 | 39.51 | 41.07 | 49.43 | 50.46 | 49.89 | 38.57 | 32.046 | 32.817 | 38.441 |
Positive developments for the support industries
Value added is much higher in the extraction industries, which drives the overall decrease. The support industries increase value added by 34,7 per cent, from 29 billion in 2018 to 38 billion in 2019. Production value for the support industries has increased by 19,9 per cent, and intermediate consumption by 14,2 per cent.
Employment in the two extraction industries remains stable, while it increases by 10,1 per cent in the support industries. The support industries now account for 58,2 per cent of total employment for the three areas extraction, transportation via pipelines and support activities.
Figure 3. Employment, by industry
1991 | 1992 | 1993 | 1994 | 1995 | 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | |
Extraction of oil and natural gas, incl. transport via pipelines | 15830 | 16119 | 17338 | 16878 | 16498 | 16185 | 16183 | 15865 | 15998 | 15154 | 15079 | 16450 | 17396 | 17119 | 16780 | 18276 | 18675 | 20150 | 21433 | 21930 | 23869 | 25625 | 27159 | 27258 | 26470 | 25357 | 23840 | 23814 | 23821 |
Support activities for petroleum and natural gas extraction | 0 | 0 | 4173 | 4603 | 4437 | 5517 | 7280 | 8080 | 9082 | 7743 | 9786 | 12358 | 12569 | 12357 | 11841 | 13470 | 15697 | 17819 | 26523 | 26828 | 30754 | 31421 | 35676 | 36814 | 33282 | 29182 | 25485 | 29860 | 33154 |
Contact
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Maria Asuncion Campechano
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Magnus Dybwik Larsen
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Statistics Norway's Information Centre