Europe & Russia: Production
Norwegian gas production shot up at the start of Q2, and output is expected to continue to be strong over the summer.
Norway produced 10.4 bcm of gas in April 2016 and 9.7 bcm in May, an increase of 33% and 11% year on year respectively. Although the rise in April was partly the result of output in April 2015 being particularly low, at just 7.8 bcm, the level of supply in April this year was still high for the time of year. Norway has continued to produce at above last year’s levels and above the Norwegian Petroleum Directorate’s target, and this is a pattern that is expected to continue over the coming months. Although output will likely fall on a month-on-month basis as seasonal demand is weaker and scheduled maintenance limits flows, year-on-year growth is expected to continue as Europe’s largest supplier continues to fight for market share. Increases in Norwegian production are expected to help pull up total European output this summer by 6% year on year.