Oil calls for oil, something that seems logical, since crude oil is usually found in relatively close formations or accumulations. But this case is somewhat unique, since the discovery of oil announced this week has occurred in a place known as the ‘dry belt’, disparagingly, precisely because it was believed that it did not house pockets of oil or gas, that is say, it was ‘dry’. For years, this piece of the North Sea has been ‘ignored’ by oil companies. However, once the most juicy areas have been exhausted, exploration and drilling vessels have begun to look at this ‘dry belt’ with different eyes. The last chocolate, even if it is the bitter orange one that no one wants, enjoys a special attraction, since it is the last. Something like this is what has 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, the rapid extraction of the most profitable fields is beginning to put a ceiling on Norway’s crude oil production, which now has problems maintaining oil pumping in the area of two million barrels per day. Large fields like Johan Sverdrup have reached their production peak (755,000 barrels per day) and are now beginning a slow decline, announcing the beginning of the end of an era in Norway. Luckily, the Government of the Nordic country has accumulated most of this wealth in a sovereign fund very well managed and has assets of around 1.4 billion dollars.
Just in case, Norway continues searching for oil in the North Sea in an attempt to delay the inevitable as long as possible. In these searches that do not seem to generate great joy, this curious event has occurred. A new discovery of oil in an area where it was believed there was nothing. Furthermore, the crude oil found is located in a shallower area of the seabed than previously thought. ‘Black gold’ has been found in an unexpected place.
The Norwegian company DNO has discovered oil in a new field within license PL1086, in which the company has a 50% operating interest (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 gross recoverable resources in the range of 27 to 57 million barrels of oil equivalent (boe).
The starting point of something greater
“As it is the first time that oil has been found in the Borr unit of the Vale Formation in the Norwegian sector, the discovery is considered a starting point,” added the statement on the company’s website. After having found oil in an unexplored area, this could be the beginning of something much bigger or perhaps everything remains purely by chance. Now, companies will look at 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 net oil reservoir of 16 meters was found. This discovery was later confirmed in a deviation “.
Surprisingly, the most superficial prospecting has found oil east of the basin known as ‘Dry Belt’, wherever it was believed that there was no oil of sufficient quality to be extracted and marketed. “In recent years, the industry had shown little interest in exploration in this area, which has been disparagingly called ‘the dry belt,'” DNO said in the statement. “Together with its partners, DNO is already considering linking the discovery to existing infrastructure, with ConocoPhillips’ Ekofisk center about 40 kilometers to the west and the Valhall center operated by Aker BP about 55 kilometers to the southwest.”
Norway and oil: a ‘love’ story
Although these discoveries are already minor, Norway’s oil history is not wasted. It is a kind of fascinating story that mixes skepticism, audacity and an unexpected success that completely transformed the economy and the destiny of the country. In the 1950s, few could imagine that the subsoil of the sea that borders the Norwegian coast hid incalculable wealth. Even the Geological Survey of Norway 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 the spark of curiosity, leading foreign companies to explore the North Sea. In 1963, Norway proclaimed its sovereignty over the continental shelf, laying the legal foundation for an industry that, at the time, seemed more like a dream than a reality.
The historic turn came in December 1969, when the Phillips Petroleum company announced the discovery of Ekofisk, one of the largest offshore oil fields ever found. 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 developed a unique state strategy: maintaining 50% ownership in all production licenses.guaranteeing that the riches of the subsoil will directly benefit their society. This vision culminated in the creation of companies such as Statoil (today Equinor) and the direct state participation model, pillars of the country’s economic success.
Over the years, Norway expanded its oil industry into the Norwegian Sea and the Barents Sea, areas that began producing in the 1990s and 2000s, respectively. Although the large initial fields show signs of decline, new smaller fields have kept production stable, diversifying operations and extending the life of the industry. This transition has been managed with a sustainable and strategic approach, allowing oil and gas to remain a key source of income without compromising the country’s ecological balance. This latest oil discovery in the ‘Dry Belt’ It is one more example that the country’s industry does not give 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 that where it was believed there was no oil, a treasure ends up being found.
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