Norway's Natural Gas Production: An Embarrassment Of Riches

Via WorldOil, October 26:

Norway comes out ahead as European gas prices surge

Europe’s energy crisis and a spike in natural gas prices are proving to be a boon for Norway, delivering a flood of revenue for the country that’s already one of the world’s richest.

Norway, with huge oil and gas fields, saw exports hit an all-time high for a third straight month in September, with natural gas sales jumping seven-fold from a year earlier. The bounty is the result of both a bounce in energy demand after pandemic restrictions were eased, coupled with a surge in prices.

Norway Wins
The country, which accounts for 25% of European Union natural gas imports, is reaping the financial benefits of a crisis that’s squeezed households and businesses across much of the region, forcing governments to promise aid to help with bills.

State-owned Equinor ASA, which publishes third-quarter results Wednesday, is set to be a winner of the energy crisis. Of the energy giant’s total production, about 35% is gas sold in Europe. Net income was probably $2.3 billion, more than six times the year-earlier figure.

The flood of cash - higher than had been anticipated - is setting Norway apart from other countries worried about bloated debt levels in the wake of stimulus spending during Covid lockdowns. It means the state can cut the amount it needs to tap from its sovereign wealth fund, the world’s biggest at $1.4 trillion.

Norway’s new government, formed after elections in mid-September, plans to continue to develop the country’s lucrative oil and gas fields. According to the previous administration, fuel revenue is expected to surge 72% to 184 billion kroner ($18.8 billion) this year, 30 billion kroner higher than estimated at the start of the year. It’s seen hitting 277 billion kroner in 2022.

“There are very high gas prices right now and gas is an important part of our exports,” Norway’s minister for petroleum and energy, Marte Mjos Persen, said in a telephone interview. “We know how important our oil and gas revenues and oil wealth are for welfare development.” 

The Big Winner

Europe’s supply squeeze may not ease for some time. Gas-storage sites in the EU are at their lowest seasonal level in at least a decade, and the World Bank’s latest Commodity Markets Outlook forecasts that energy prices will remain elevated into 2022....

....MUCH MORE

As noted in the introduction to a 2017 post "Which oil exporters are most desperate for higher prices?":

All of them?

An interesting piece but I fear the authors underestimate the risk of Norway exploding into anarchy with the whole Janteloven (Law of Jante) thing being exposed as simply a 20th century construct while the trading/raiding blood bubbles just below the surface.
Or not. Who knows?