Energy Ticker


Draugen might be closed down sooner than planned

Royal Dutch Shell may shut down its Draugen oil field in the Norwegian Sea ten years earlier than first planned due to rising costs and declining oil prices. Shell expects production from the field to extend until 2024 to 2027, after previously estimating a potential of as long as 2036. Draugen is one of Norway`s most efficient fields, with a recovery rate of 70 percent, and was according to Shell initially set to be shut in 2013. From a peak of 225,000 barrels of oil a day, production has fallen to an average of 30,000 barrels per day so far in 2014.


US Senate voted against Keystone XL oil pipeline

With 59 of 60 needed votes, the US senate rejected a bill to approve the Keystone XL oil pipeline. All 45 Republicans voted for the bill, while fourteen Democrats were positive during the vote on Wednesday. Thus, one vote was missing to reach the needed 60 votes and for the proposal to go through. 41 senators voted no. The pipeline is intended to carry crude oil from Canada to the US, which environmentalists are against. Obama has signaled that Keystone XL only can be built if it can be proven that it does not increase emissions of greenhouse gases. The project requires approval from the president because the pipeline will cross an international border. According to NTB, the bill was approved last week in the US House of Representatives, where Republicans have a majority.


NOK 60 billion (€ 7 billion) each year

If it is decided to open Lofoten, Vesterålen and Senja for petroleum activities, it will have major impacts both locally and nationally. Rystad Energy has estimated that the activity can begin around year 2040 if politicians agree on to go this direction during next election. In a report, commissioned by the Norwegian oil and gas Association and Narvik Science Park, Rystad Energy estimates annual investments of up to NOK 60 billion (€ 7 billion) within the areas of exploration, development and production. An opening of the Northeastern Norwegian Sea may in the long term provide a potential market of NOK 12 billion (€ 1.4 billion) annually. - We want politicians to have the best possible foundation when they after the elections in 2017 will make a decision about what should happen in these areas, Geir Seljeseth in the Norwegian oil and gas Association says in a message.


Halliburton buys Baker Hughes

It is now announced that Halliburton will buy Baker Hughes for NOK 235 billion (€ 27.7 billion) in a cash and stock transaction that marks one of the biggest oil-field services mergers ever. The acquisition values Baker Hughes at 78.62 dollar a share. Baker Hughes has a market value of over NOK 150 billion (€ 17.7 billion), while Halliburton is valued as the double. Both companies are heavily involved in Norwegian oil industry. According to the companies, the merger is expected to produce annual savings of almost NOK 14 billion (€ 1.65 billion). It is expected that the board in Halliburton will be expanded to 15 people after the merger. The acquisition also means that Craighead`s days as CEO is over; Halliburton`s Dave Lesar will continue as CEO after the merger.


Press Contact

Verena Sattel
Communication Manager North Sea, Spokesperson