269270
/en/energi-og-industri/statistikker/oljev/aar
269270
Low oil prices caused fall in production value
statistikk
2016-12-19T08:00:00.000Z
Energy and manufacturing
en
oljev, Extraction and related services, petroleum activity, oil production, gas production, pipeline transport, employees, wage costs, value added, production value, product input, added value, services, drillingOil and gas , Energy and manufacturing
true
Lower prices for crude oil and natural gas contributed to a fall in production value of NOK 126 billion in 2015 for the extraction and related services. This is a significant decrease of 16 per cent in comparison with 2014.

Extraction and related services

Updated

Next update

Key figures

-15.9 %

change in production value for the extraction industry

Annual statistics oil and gas activity
201420151Change in per cent
NOK million/numberNOK million/numberShare2014 - 2015
1Preliminary figures.
Total value of production787 236661 729100-15.9
Extraction of oil and natural gas, incl. transport via pipelines649 614525 20879.4-19.2
Support activities for petroleum and natural gas extraction137 622136 52120.6-0.8
Intermediate consumption, total149 533138 373100.0-7.5
Extraction of oil and natural gas, incl. transport via pipelines62 36851 56637.3-17.3
Support activities for petroleum and natural gas extraction87 16586 80762.7-0.4
Value added, total637 707523 386100.0-17.9
Extraction of oil and natural gas, incl. transport via pipelines587 246473 64290.5-19.3
Support activities for petroleum and natural gas extraction50 46149 7449.5-1.4
Total employees64 07259 869100.0-6.6
Extraction of oil and natural gas, incl. transport via pipelines27 25826 47044.2-2.9
Support activities for petroleum and natural gas extraction36 81433 39955.8-9.3

See more tables on this subject

Table 1 
Principal figures for oil and gas activities. NOK million

Principal figures for oil and gas activities. NOK million
2012201320142015Change in per cent
2014 - 2015
1Changes in methodology from 2012 and onwards, affects comparability with previous years. Read more in About the statisitics.
Extraction of crude oil and natural gass, incl. transport via pipelines1
Gross value of production708 655672 627649 614525 208-19.2
Intermediate consumption60 53571 71962 36851 566-17.3
Value added648 122600 908587 246473 642-19.3
Value added at factor price645 140595 434582 721468 284-19.6
Employees (persons)25 62527 15927 25826 470-2.9
Wage costs39 00843 52645 68646 0850.9
Royalties2 9815 4744 5255 35818.4
Accrued investments173 482211 883224 402201 192-10.3
 
Support activities for petroleum and natural gas extraction
Gross value of production113 526135 336137 622136 521-0.8
Intermediate consumption72 45386 14887 16586 807-0.4
Value added41 07449 18750 46149 744-1.4
Value added at factor price41 08349 20450 45749 714-1.5
Employees (persons)31 42135 67636 81433 399-9.3
Wage costs28 50835 27037 72435 015-7.2
Accrued investments10 1924 7374 0393 752-7.1

About the statistics

The purpose of the statistics is to visualize economic activity on the Norwegian continental shelf, as well as extraction related support activities and services on land. The statistics provide figures such as the total value of production, value added, intermediate consumption and labor costs, and it provides important data source for the national accounts.

Definitions

Definitions of the main concepts and variables

Enterprise

In Standard for Industrial Classification (SN07) an enterprise is defined as an organisational unit comprising all economic activities engaged in by one and the same owner. Hence an enterprise is a legal entity covering one or more productive units.

Establishment

In SN07 an establishment is defined as a local kind of activity unit, which mainly is conducting activities within a special industry group.

Production value

Production value is defined as turn-over corrected for stock change of products and services. Purchase of merchandises is excluded, while own investment works are added.

06 Extraction of crude oil and natural gas

  Produced amount * Price
- Transport tariff#1
+ Income from border fields
+ Own investment works
= Production value

#1 The price on oil and gas being transported by pipelines includes the value of the transport. Since pipeline transport belongs to another industry, the transport tariff needs to be excluded by subtraction.

49.500: Transport via pipelines

The production value consists of transport tariffs in the Gassled system and other pipelines registered in the business register. Small pipelines being an integrated part of a field belongs to the extraction industry. As a preparation for analytical purposes, the tariffs are allocated back to the separate fields. For the Gassled tariffs this is proportionally according to the production volume of natural gas, condensate and NGL, while for the other pipelines the tariffs are reported by field.

09.10: Service activities incidental to oil and gas extraction

  Turnover#1
- Stock change
= Production value

#1 Turnover is  defined as the enterprise's operational income, subtracted grants and profit from sale of fixed capital. Duties and taxes are included, except VAT.

Intermediate consumption

Intermediate consumption means the value of applied input goods and services, except depreciation. Until statistic year 2014, that was different methods have been used to calculate intermediate consumption in the extraction and pipeline industries. From 2015 use the same calculation method for extraction and pipeline. See also 'Coherence over time and space' for a description of methodology change between 2015 and 2014.

06 Extraction of crude oil and natural gas

 

Sum of production costs (for 06 & 49.5): Sum of general  operational costs, wage costs and operation costs.

-

Transport and processing costs (only relevant for fields)

-

Wage costs

-

Insurance

-

Income outside the joint venture#!

=

Intermediate consumption

#1 Internal deliveries which are to be excluded, cf. principles for national accounts

09.10: Extraction-related services 

  Sum operational costs
+ Stock change of own produced means of production
- Stoc changes of merchandices (produced and under production)
- Wage costs
- Other reportable allowance
- Employer's contribution
- Other personel costs
- Depreciation of production means and immaterial assets
- Writedown of production means and immaterial assets
- Loss on exit of production means
- Loss on claims
- Commodity cost of sold merchandices
= Intermediate consumption

Value added (market price)

Value added (market price) is defined as the production value less intermediate consumption (i.e. purchase of goods and services, except for re-sale, certain public taxes and grants, and stock changes). In practice, there are no such public taxes or grants in these industries, and no correction is made for stock changes.

  Production value
- Intermediate consumption
= Value added (market price)

Value added at factor price

Value added at factor price equals value added (market price) CO2 tax (no other grants or taxes are relevant to these industries).

Employment

Employment is defined by the sum of owners and wage-earners working in the unit, and is an annual average. Persons being absent due to holiday, desease, labour conflict, etc. are included. Hired labour force from agency is excluded.

Wage costs

Wage costs encompasses wage, holiday allowances, royalties, employer's contributions, reportable pension costs and other personel costs.

Investments

Investment encompasses all accrued Investments. See also Investments in oil and gas, manufacturing, mining and electricity supply.

 Prices

Crude oil: The norm prices from MPE are applied. The norm price shall correspond to the price that could have been obtained between independent parties in a free market, and is set based on an expert judgement of the market situation. The norm price is used by MPE and the Ministry of Finances as calculation basis for taxes and duties.

Natural gas, condensate and NGL: prices from 2012 based on the ETS, with exception in 2013 that the natural gas was based on OTO.

Border fields

Fields on the national border, that are partly Norwegian and partly British. The statistics cover the Norwegian part only.

Gross investment

Gross investment is considered acquisition of fixed capital (ie. duration more than one year) as buildings and plant, machinery, tools, equipment, furniture and vehicles (except for private use) - both new and used. Additionss are added while sales of used fixed assets are deducted. Gross investments entered with deduction of input VAT.

Standard classifications

The industrial classification follows the Norwegian standard industrial classification (SN 2007), which builds on EU's industrial classification NACE Rev. 2 and UN's industrial classification ISIC Rev. 4.

Administrative information

Name and topic

Name: Extraction and related services
Topic: Energy and manufacturing

Next release

Responsible division

Division for Energy and Environmental Statistics

Regional level

National

Frequency and timeliness

Annual. Preliminary figures are published 12 months after the reference year. Final figures are delivered to the national accounts17 months after the reference year.

International reporting

Structural business statistics (SBS), Eurostat.
ITF/UNECE Common Questionnaire for Transport Statistics

Microdata

Micro data stored in Oracle database and as archive files on Linux. Population and administrative data stored in central systems.

Background

Background and purpose

The object of the annual statistics for oil and gas activity is to provide an economic overview of the activity on the Norwegian continental shelf, as well as related service activity. Separate data collection for the oil and gas industries has been carried out since 1984. The oil statistics are used as basis for calculations in the National Account and for research purposes. The oil statistics provides principal figures like gross value of production, value added, intermediate consumption and more.

Statistics are part of the structural statistics in SSB. The statistics will provide an overview of structure of industry 06 Extraction of crude petroleum and natural gas, 09.1 Support activities for petroleum and natural gas and 49.5 Pipeline.

Users and applications

National accounts, Eurostat, ministeries, branch associations and research. The needs of the nasional accounts and Eurostat/Fats regarding the extraction and pipeline industries are diverging. The national statistics, which are described here, are compiled according to the needs of the national accounts, while the figures reported to Eurostat and Fats are based on the same administrative sources as the rest of the structural statistics.

Equal treatment of users

No external users have access to the statistics and analyses before they are published and accessible simultaneously for all users on ssb.no at 8 am. Prior to this, a minimum of three months' advance notice is given inthe Statistics Release Calendar. (About engelsk versjon av  likebehandlingsprinsippet)

Coherence with other statistics

National accounts

The statistics on extraction and related services build on data reported from a.o. the oil and gas industries and the Norwegian Petroleum Directorate. Statistics Norway publishes similar figures in the quarterly national accounts. Before the annual oil and gas statistics are published, the national account figures build on projections. These preliminary national account figures may deviate from the annual oil and gas statistics:

• Expenditure on research and development (private investment), and net expenses for banking services (FISIM) and insurance are included in intermediate consumption in the national accounts but not in oil statistics.

• Produced volume of natural gas is based on various sources, to ensure that national accounts are consistent with other important stats in SSB. The sources are checked against each other to ensure that any differences are small.

• The price of crude oil is based on various sources, to ensure that national accounts are consistent with other important stats in SSB. They are checked against each other to ensure that any differences are small. Previously, the prices of natural gas and condensate, based on various sources. From 2014 the gas prices are based on same source .

• In national accounts balance extraction industry towards access and use in other industries.

• Value added (market price) of oil statistics equals gross product (market) in the national accounts, but with the differences shown in the above. (It will not be published gross product at factor cost in the national accounts and value added to the base price of oil statistics.)

Before Annual statistics on extraction and related services are published and incorporated in the national accounts, the figures in the national accounts based on forecast from the previous year.

External trade statistics

The external trade statistics (ETS) publishes the export value of crude oil, natural gas, condensate and NGL-products. The value is estimated at the national border, while in the oil and gas statistics the value is estimated at the site of production. Furthermore, the oil and gas statistics cover production for the Norwegian market. From 2014, the annual statistics on extraction and related services based on gas prices from ETS.

Employment

Employment figures are also published in the national accounts, in employment statistics based on A-ordningen. The employment figures are annual averages and cover full-time and part-time employees.

Legal authority

The Statistics Act §2-2, §2-3, §3-2.

EEA reference

EU regulation no. 295/2008.

Production

Population

The numbers are published according to the Norwegian industry classification (SIC2007) .

The classification is in accordance with the EU’s new NACE Rev. 2 classification. This enables comparability across country borders.

The annual statistics for oil and gas activity covers the folllowing 3 industries:

06: Extraction of crude oil and natural gas

09.10: Service activities incidental to oil and gas extraction

49.500: Transport via pipelines

All enterprises within 06, 09.10 and 49.500 are included in the statistics if they are registered with active operations in Norway in statistical year. (See also Data Sources and selection)

EU structural Regulation primarily requires statistics on enterprise level. For reasons of national accounts and other Norwegian users, however, it compiled statistics on business unitlevel, ie. fields, terminals, pipelines and land office.

Data sources and sampling

06 Extraction of crude oil and natural gas and 49.500: Transport via pipelines

The population covers all approved operators and license owners on the Norwegian continental shelf, including fields, terminals and offices, in addition to businesses in NACE 49.500 and pipelines registered as separate units in the business register. The data collection is a census, and the population is based on information from the Norwegian Petroleum Directorate (NPD) and the Ministery of Petroleum and Energy (MPE) in addition to central principles for population management.

Data on produced amounts from NPD are combined with price data from several sources to estimate the production value. For crude oil norm prices from MPE are used. Starting in 2012, used prices from external trade statistics for the three gas products, with the exception of 2013 where price data from the Oil Taxation Office (OTO) was used. Use of different data sources is to get the closest accurate prices.

From 2015 received tariff revenues for pipeline transport and environmental taxes from the NPD.

From license-owners, operators and pipeline-owners obtained data of operational costs and characteristic income for both extraction industry and pipeline, through a survey. From Gassco obtained tariff costs for Gassled (ie major pipelines, as well as two terminals).

Data of investment obtained from Quarterly investment statistics.

09.10: Service activities incidental to oil and gas extraction

All enterprises with either employees, turn-over or investments are covered in the population. All multi-business enterprises and all single-business enterprisees above 20 employees are included in the sample. For single-business enterprises below 20 employees, a stratified sample is drawn. Data for enterprises outside the sample are based on administrative sources and distributions from the sample.

The data sources include the annual structural survey and administrative sources (tax statements, annual reports and the A-ordningen). The population in the business register is based on automatical updates from the Register of Business Enterprises in Brønnøysund, and maintained by means of the VAT register, information from branch organisations and dialogue with the enterprises.

Collection of data, editing and estimations

From statistical year 2015, the statistics use one survey form (RA 0756) for obtaining information from enterprises belongs to 06 and 49.5 industry. The form replaces the earlier forms RA 0124, RA 0125 (part 1 and 2), RA 0188, RA-0273, RA 0292 (part 1 and 2) and RA-0308 (part 1 and 2).

Furthermore, the form for pipeline tariff is replaced by Revised National budget (RNB) data obtained from the NPD, and the former form for gas prices replaced by data from ETS, from 2014. The survey form (RA-1407) for 09.1 is almost unchanged.

Both forms are only available in electronical form, and from 2015, the forms must submit through Altinn.no.

A series of quality controls are performed:

  • Change from the previoius year on both micro and macro level.
  • Consistency checks within and between forms.
  • Consistency with other data sources:
  • a) petroleum prices against the external trade statistics
  • b) employment against register-based figures
  • c) income and expenditure figures against tax statements and annual reports

06 Extraction of crude oil and natural gas and 49.500: Transport via pipelines

Operational costs and certain types of income are estimated based on reporting from the enterprises. The major part of the income is estimated from the net production volumes (NPD), prices (MPE and ETS), Gassled transport and terminal tariffs (Gassco AS), and RNB tariffs for those pipelines which are not included in Gassled. Internal trade within the industry is excluded.

09.10: Service activities incidental to oil and gas extraction

The totals are estimated based on information from the forms and the administrative sources. Geographical distribution is obtained from the form reporting, where the enterprises split certain incomes and costs on the single businesses.

Seasonal adjustment

Not relevant

Confidentiality

If a cell in a table contains data from less than three units, or is totally dominated by one or two units, the figure is suppressed.

Comparability over time and space

The following events have affected the time consistency:

1993

New industry standard (NACE rev. 1 / SN94). All license owners, even for those whom are not participated in production activity ("Financial Institutions"), was included in the extraction industry. Data for these companies were from 1993 obtained in the form licensees (RA 0273). That same year, other services which not belongs to oil drilling activity also included to the extraction-related service industry.

2008/2009

For extraction industry (SN2007: 06) are employment figures from 2008 are not directly comparable with previous years. This is due to changes in the data of the implementation of employment register data. The employment figures in 2008 were revised upwards.

For service industry (SN2007: 09.10) has until the end of 2008 made a cut-off, where enterprises with fewer than 50 million in sales and fewer than 3 employees are excluded from the statistics. From 2009, the statistics are based on a complete census of all active enterprises in the industry. (See Source Data and selection).

From the 2009 vintage were 9 major companies reclassified from industrial enterprises of nourishment 09.10 Services to oil and natural gas.

2012

There were changes in method which have significant effect on the extraction industry from 2012, particular for calculation of the production value and intermediate consumption. Changes in method are requests which required from the national accounts. The major changes include:

• Deliveries between onshore and offshore within the industry regarded as internal deliveries and netted from 2012 (Until 2011, these deliveries treated as gross).

• New price data for natural gas, condensate and NGL. From 2012 price data from ETS, with the exception of 2013 when price data from OSK was used.

The following table summarizes the effect of changes in the figures for 2012.
Table: The effect of methode changes in 2012:

 

Differance  (mill. kr)

Production value

-33400

Intermediate consumption

-45900

Value added

 12500

2013

In 2013, several enterprises were reclassified from other industries to the oil service industry. This contributed to the growth in the industry from 2012 to 2013. The reclassifications reflect an altered assessment of the firms' main activity, not a change in the activity itself.

2015

Restructuring of form survey for extraction industry contributed to the decline in estimated intermediate consumption and a corresponding increase in value added. These are the changes observed:

• Transport and processing tariffs at fields were sometimes reported as 'other transport and communication' for 2014, intermediate consumption was overestimated. The final figures for 2014 have been revised for this, and are consistent with 2015 figures at this point.

• R & D, taxes and fees except environmental taxes, are considered operating expenses of oil companies, but not by SSB. In the former survey was such costs reported as part of operating costs, while in the new study, these costs are excluded. This over reporting amounted to about 1-3 billion in 2014.

• The companies' investment in acquired technical services within seismology, geology, field evaluation, R & D and more, were counted as part of intermediate consumption until 2014. Since these are considered as investments, they are excluded from 2015. In 2014 these investments amounted to 5 billion NOK.

• Company own investments, as rent, electricity, office equipment, travel, fees and other administrative expenses were included in the intermediate consumption until 2014, but the preliminary figures for 2015, this kind of private investment only partially been included. The estimate was between 0-2 billion NOK, which is not included in the intermediate consumption in 2015, thereby providing a method-change effect on intermediate consumption and value added compared with 2014.

Overall, the decline in intermediate consumption of 6-10 billion and a corresponding increase in value added from 2014 to 2015 which is caused by the transition to the survey form. However, it can not be excluded pure survey form effects, resulting from changes in question formulation, new organization of data fields and new lay-out.

From statistical year 2014, the calculation of production value is based on gas prices from ETS. This provides a better consistency between the statistics and national accounts. The final figures of production value and value added for 2014 was revised upwards 17.7 billion NOK, as a result of this change.

Accuracy and reliability

Sources of error and uncertainty

The results of a statistical survey will usually contain certain collection and processing errors. There may also be uncertainty about the delimitation of the population, and that sample surveys contain sampling errors.

Collection errors may have occurred due to misunderstanding of questions in the form, use of unfamiliar terms, etc. The most common errors in extraction and pipeline transport until 2014 due to misunderstandings surrounding which survey form the information should be reported on, and thus a risk of gaps and double counting, and which information should be reported in this survey or in the quarterly investment statistics. From 2015 uses only one survey form for the company to fill out all their business units. The new survey form used more recognizable terms that the respondents are familiar with the contents, and clarifies the differences between this survey and the investment survey. Thus, the risk for errors should be reduced.

Editing errors occur such as the transmission of information from the questionnaire through editing base and computational programs to the final tables, or miscalculations during editing of raw data.

A series of editing controls are performed on both micro and macro scale (see 'Collection of data, editing and estimations'), where the largest errors are identified. Recently, a comprehensive editing of the production and estimation procedures was made (see 'Comparability over time and space'), during which several calculation errors were corrected.

Sampling uncertainty is not relevant for NACE 06 and 49.5, as the survey for these industries was a census with 100 per cent response rate. In NACE 09.10 a slight sampling uncertainty must be assumed. However, most data are collected from administrative sources covering the entire population.

Selection Uncertainty caused by the gathering of information is done on the basis of a sample selection of the population and not whole population, and that the response is not always 100 percent. For the statistic year 2015 was the response rate 100 percent for 06 Extraction of crude petroleum and natural gas and 49.5 Pipeline. Since this is also a full count, there was no sampling error in this industry. In 09.1 Extraction-related service industry, the response rate of sample survey was about 95 percent. However, most of the information obtained from administrative sources, where the entire population is covered. Therefore, selection error in 09.1 also very small.

NACE 09.10 is an industry with quite many enterprises doing different activities. There are frequent changes because of acquisitions and fusion. Hence, uncertainty in defining the population and coding the enterprises and businesses into correct industry is a source of error in this industry.

Revision

Go to Engelsk versjon av revisjonsprinsipper for more about Principles for revisions in Statistics Norway.

Contact