NW Europe oil flow to hit record in 1997

Norwegian, U.K. offshore field start-ups likely in 1997 [43956 bytes] Northwest European oil production is set to hit another record in 1997, as Norway, U.K., and Denmark push output to national record levels. This is the forecast of Wood Mackenzie Consultants Ltd., Edinburgh. It estimated Norwegian oil production will increase by 6% in 1997 to average 3.43 million b/d. Norway's total output will reach a new high of 3.6 million b/d by yearend 1997, said the analyst, up from an estimated

Jan. 27, 1997

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Norwegian, U.K. offshore field start-ups likely in 1997 [43956 bytes]

Northwest European oil production is set to hit another record in 1997, as Norway, U.K., and Denmark push output to national record levels.

This is the forecast of Wood Mackenzie Consultants Ltd., Edinburgh.

It estimated Norwegian oil production will increase by 6% in 1997 to average 3.43 million b/d.

Norway's total output will reach a new high of 3.6 million b/d by yearend 1997, said the analyst, up from an estimated average 3.25 million b/d in 1996.

Six new fields are expected to be brought into production off Norway next year, while production from Draugen, Heidrun, and Troll is expected to continue rising.

U.K. North Sea production is expected to rise 8% to a record 2.78 million b/d for 1997, as 11 new fields are brought into production (see table).

Denmark's oil output is also expected to reach a new high, averaging 224,000 b/d for 1997, up from an estimated average 208,000 b/d in 1996. Two new fields are expected on stream here.

Netherlands offshore oil production is predicted to fall a further 19% in 1997, to 30,000 b/d from 37,000 b/d. The analyst said output continues to decline from all fields, and no new oil field developments are due on stream.

"The combination of these changes," said Wood Mackenzie, "will result in a 400,000 b/d increase in total output from Northwest Europe, to an average of 6.47 million b/d, an increase of 7% over the 1996 level."

Non-OPEC status

Wood Mackenzie said increased production from Northwest Europe will contribute to an increase of a total 1 million b/d of oil production outside the Organization of Petroleum Exporting Countries and former Soviet Union.

"Rising Northwest European oil production in 1997," said Wood Mackenzie, "will help boost total non-OPEC output. However, this is not expected to be at a level to keep pace with steadily rising worldwide oil demand.

"This allows room for return of Iraqi oil to the market in 1997 and therefore, assuming no increase in OPEC production, a limited impact on oil prices is likely."