Norway: Drill, Drill, Drill -- What Price War? -- March 19, 2016

From Reuters:

Oil companies operating in Norway should hike recovery rates from mature fields despite falling crude prices, and resist the temptation to shut output earlier than planned, Energy Minister Tord Lien said.

"Companies are obliged to maximise the value of each field to prevent profitable resources from being squandered," Lien of the right-wing Progress Party told Reuters on the sidelines of an industry conference.

"This is something we must focus on, and it is important to communicate to companies that they have an independent responsibility to follow up," he added. "It's important to be clear on this from the government's side."

Lien declined to say whether he was satisfied with the efforts currently made by energy firms in upholding production.

Norway's oil output will drop to 1.53 million barrels per day in 2016 and 1.41 million in 2020 from 1.57 million in 2015.

The NPD has previously said that if prices stay low it could accelerate a fall in crude production after 2020 if companies quit fields early or cancel the development of new projects. As part of its cost cutting effort, state-controlled Statoil last year postponed a decision on extending the lifetime of its Snorre field to 2040. The upgrade has been estimated to yield an additional 300 million barrels of oil.

A cut from 1.57 million bopd last year (2015) to 1.53 million bopd this year (2016) -- 40,000 bopd -- is minuscule in the big scheme of things -- North Dakota's production dropped 30,000 bopd in each of the last two months -- but over time, it adds up.