Extraction and related services, 1999, preliminary figures

The oil industries comprise operators and licensees operations related to extraction and pipeline transport of crude oil and natural gas. Services and contract oil drilling are additional activities. The process value is an expression of added value, which is mainly determined by three factors: production, prices and intermediate consumption.

The large increase in the value added of NOK 46.9 billion in the oil industries from 1998 to 1999 was mainly caused by the large increase in the process value in the extraction of oil and natural gas, which was up NOK 45.7 billion. The main reason for the increase in the value added was higher crude oil prices and a moderate increase of the intermediate consumption.

Increased sales value of oil and natural gas

The sales value of crude oil and natural gas production in 1999 is estimated at NOK 174.3 billion, an increase of 35.0 per cent compared with 1998. However, the sales value in 1999 was 2.4 per cent lower than the sales value in 1997. The increase in the sales value is a result of a combination of higher prices of crude oil, NGL (Natural Gas Liquids) and condensate, and an increase in the overall petroleum production. The sales price of crude oil, NGL and condensate was up 45.5, 21.0 and 55.7 per cent from 1998 to 1999 respectively, while the sales price of natural gas was down 9.7 per cent.

Moderate increase of the intermediate consumption

The intermediate consumption in the oil industries in 1999 was NOK 40.6 billion. This is an increase of NOK 1.7 billion or 4.5 per cent compared with 1998. The intermediate consumption in the producing oil and gas fields in 1999 was NOK 17.9 billion, which is an increase of NOK 0.2 billion or 1.4 per cent compared with 1998.

Increased employment

The oil industries, excluding pipeline transport of oil and gas, employed 25 080 in 1999. This is an increase of 531 or 2.2 per cent compared with 1998. Most of the increase is caused by a rise in the employment in service-related industries. The wage costs, including social benefits, increased by 10.0 per cent from 1998 to 1999. In 1999, employees were paid NOK 674 000, which is an increase of 7.6 per cent compared with similar figures in 1998.

Tables:

• Table 1 Principal figures for extraction of crude oil and natural gas. 1995-1999
• Table 2 Intermediate consumption for fields on stream. 1995-1999. Million NOK
• Table 3 Principal figures for service activities incidental to oil and gas extraction excluding surveying. 1995-1999
• Table 4 Principal figures for extraction of crude petroleum and natural gas; service activities incidental to oil and gas extraction excluding surveing. 1995-1999
• Table 5 Principal figures for transport via pipelines. 1995-1999. Million NOK