This is an archived release.
Lower value added from oil and gas activity
The gross value of production and value added in the Norwegian oil and gas industry decreased by 4 and 7.6 per cent respectively from 2006 to 2007. The decrease came as a consequence of lower natural gas prices and a continuing reduction in oil production.
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 620 billion in 2007, NOK 26 billion lower than in 2006. Intermediate consumption increased by 21.5 per cent to NOK 96 billion. As a result, the value added went down to NOK 524 billion, 7.6 per cent lower than the previous year.
The oil and gas industry employed around 34 392 people in 2007, 2 500 more than the year before. At the same time, wage costs increased by almost 15 per cent.
Lower natural gas prices drives fall in extraction industry
More than 90 per cent of the total value added from the oil activity stems from the extraction industry. The gross value of production decreased by 5.3 per cent in this industry, and totalled NOK 552 billion in 2007. The value of produced oil and gas is the most important component of the gross value of production, and fell 6.5 per cent to NOK 522 billion. This was caused by a 10 per cent drop in natural gas prices and a 6 per cent decrease in oil production. At the same time, natural gas production increased by 3 per cent and average crude oil prices went up 3 per cent, but this was not enough to prevent the fall. Intermediate consumption increased by 24 per cent, to NOK 67 billion. The value added was NOK 485 billion, down 8.3 per cent from 2006.
The extraction industry had 18 122 employees in 2007, 333 more than in 2006. More operators and licensees on the continental shelf was the main cause, but a general increase in employment in the established companies also contributed. Wage costs increased by 15.3 per cent, to NOK 23 billion.
Higher activity in the oil service industry
The service industry includes drilling and technical services directly related to the extraction activity. Higher exploration activity on the Norwegian continental shelf in 2007 contributed to a 16 per cent increase in the gross value of production, which totalled NOK 47 billion With an intermediate consumption of NOK 27 billion, value added amounted to NOK 20 billion. The service industry had a 15 586 increase in employment in 2007, which is around 2 000 more than in 2006. Wage costs increased by 14.5 per cent.
Lower value of production in pipeline transport
The gross value of production in the pipeline transport industry was NOK 21 billion in 2007, which mainly consisted of income from transport tariffs. This is a 6.6 per cent decrease from 2006. With an intermediate consumption of NOK 2.3 billion, value added amounted to NOK 18.6 billion. This is a 9 per cent decrease from 2006. Employment in the pipeline industry totalled around 700 employees.