While many recent reports have shown that there’s been a drop in the overall oil prices, and it’s causing many companies to worry, some oil companies seem to have nothing at all to fear. Statoil, from Norway, reports that a large oil field in the North Sea called the Johan Sverdrup oil field, has the potential to provide the company with plenty of revenue for the next fifty years. In fact, this single field could provide nearly $200 billion for them, and it has the potential to output nearly 650,000 barrels of oil a day. While a substantial amount of the revenue would actually go to the Norwegian government since they are 67% government owned, the company still stands to make a great profit.
Still Making a Profit
Because of the amount of oil in the field, it is natural that this will become one of the focal points for Norway’s crude oil output for many years to come. In fact, it holds some fantastic potential for the company, the country, and the residents of the country. The discovery will mean a secure and steady source of energy, as well as a large number of jobs in the industry, and behind the scenes as well.
Although the price of oil is down, and many oil projects are simply not as profitable as they were in the past, experts feel that Statoil will not suffer from this as much with this field. They feel that the company could still stand to make a profit, even if the barrel prices were only around $40 a barrel. The ability to remain profitable at a low cost is great news for the company and for Norway.
Experts go on to say that they believe the field will hold at least 1.8 billion barrels of oil in all. In the beginning, the production should be below 400,000 barrels a day. However, when the project is well underway, this could increase to more than 650,000 a day. Because of the speculation that this field could be highly profitable, it means investors are more than willing to put in their money now. The field will not likely start to produce until 2019, but once everything is in place, it should continue to be a moneymaker for the country and the company for at least another five decades, or possibly more.
About Oil Works Inc.
Oil Works, Inc. is a complete drilling rig equipment manufacturer and service provider based in the Permian Basin for over 20 years. OWI’s product and service offerings include Derricks, Substructures, Drawworks, Mud Systems, Walking Systems, Power Generation, Control Systems, Iron Roughneck Repair and Upgrades and complete Rig Solutions built to API and ISO standards. OWI is also proud to offer 24/7 Service and Support.
