Strong decrease in value added
Energy and manufacturing
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

Extraction and related services2009, preliminary figures



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Strong decrease in value added

The gross value of production and value added in the Norwegian oil and gas industry decreased by 20 and 27 per cent respectively from 2008 to 2009. The decrease came as a consequence of lower oil and gas prices and a continuing reduction in oil production.

Value of production, intermediate consumption and value added. 1991-2009. NOK billion

Employment and Wage Costs. 1991-2009

The oil and gas activity in Norway is covered by the following three areas: extraction of crude oil and natural gas, the service industry including drilling, and the pipeline transport industry. The gross value of production in the oil and gas activity amounted to NOK 617 billion in 2009; a reduction of 20 per cent compared to the historical high level in 2008. The intermediate consumption increased by 19 per cent to NOK 138 billion. As a result, the value added increased to NOK 479 billion; 27 per cent lower than the previous year.

The oil and gas industry employed over 47 000 people in 2009, while the number was 37 800 in 2008. However, out of the increase of nearly 9 400 employees, 6 500 were due to a reclassification of enterprises from industry to service activities. The effect on gross value of production and value added are of less significance. For more information, see About the index, chapter 6 .

Lower oil and natural gas prices drive fall in value creation

Around 88 per cent of the total value added from the oil activity stems from the extraction industry.

The gross value of production decreased by 27 per cent in this industry, and amounted to NOK 504 billion in 2009. The decrease was mainly caused by a sharp drop in oil and natural gas prices, as well as a decrease in oil production. At the same time, intermediate consumption increased by 4 per cent, to NOK 82 billion. The value added amounted to NOK 422 billion; down 31 per cent from 2008.

Value added, by industri. 2009. Per cent

While the production of crude oil (incl. NGL and condensate) decreased by 5.9 per cent, the production of natural gas increased by 4.3 per cent. This led to a joint increase in petroleum production by 1 per cent compared to 2008 (see Production and reserves - 2009 ).

Despite a gradual recovery of the crude oil price during 2009 after the sharp fall in autumn 2008, the average oil price decreased by 29 per cent to NOK 383/bbl. At the same time, the average gas price dropped by 22 per cent, and amounted to NOK11.81/ sm3.

The extraction industry had over 21 000 employees in 2009; up 6 per cent from 2008, while wage costs increased by 14 per cent, to NOK 24 billion.

Six new fields came into production in 2009: Alve, Delta, Rev, Tyrihans, Volund and Yttergryta.

Higher activity in the oil service industry

The service industry includes drilling and technical services directly related to the extraction activity.

In 2009 the gross value of production amounted to NOK 92 billion; an increase of NOK 33 billion from 2008. Out of this increase, NOK 12 billion is related to the moving of enterprises from industry to services mentioned earlier; see About the index . Looking at the numbers that include the new enterprises, the intermediate consumption amounted to NOK 54 billion in 2009. This led to an increase in value added, which ended at NOK 39 billion. The service industry employed almost 26 000 people in 2009, while the wage costs amounted to NOK 23 billion.

Lower value of production in pipeline transport

The gross value of production in the pipeline transport industry mainly consists of transport tariffs paid by operators and licensees for transportation of oil and gas. In 2009 the gross value of production in the pipeline industry decreased by 2 per cent, and amounted to NOK 21 billion. With an intermediate consumption of NOK 2.5 billion, value added amounted to NOK 18.5 billion. This is a 3 per cent decrease from 2008.

Revision of previously published numbers

A revision of previous publications has led to corrections in numbers for the years 2004-2008.

1 The natural gas price is based on price information from operators and licenses on the Norwegian continental shelf. The price reflects the volume weighted average price before the transport costs are subtracted. The volume weighted oil price is based on norm prices from the Ministry of Petroleum and Energy.