Navigating Norway’s cut
The non-Opec nation’s decision to join in mandated production restrictions is headline grabbing. But the material impact is open to question
Norway’s late April decision that it would be joining the ranks of oil producing countries imposing output cuts is eye-catching due to its novelty. But, while thinking about the Scandinavian nation in an Opec quota style context is new, a key variable—the baseline from which the cuts are calculated—is reassuringly familiar. The figures put out by the Norwegian ministry of petroleum and energy (MPE) were clear enough—a 250,000bl/d cut in June and a 134,000bl/d cut for the second half of the year. But a cut from what? The reference case, says the ministry is 1.859mn bl/d. So, a cut of 250,000bl/d in June means maximum Norwegian continental shelf (NCS) oil production of 1.609mn bl/d, while t

Also in this section
17 June 2025
Israel’s attack on Iran caught oil firms with low inventories due to their efforts to protect themselves from falling prices, creating a perfect storm
17 June 2025
Sound development planning is essential in this diverse and rapidly evolving region
16 June 2025
The launch of the much-needed yet oft-delayed Africa Energy Bank remains shrouded in questions and funding constraints, but its potential is clear
16 June 2025
BP and partners have reached a $2.9b FID on a new phase at Shah Deniz, but slow progress on other gas projects is attributed to a lack of European support