Europe & Russia: Production
Norway’s gas production fell on an annual basis in June and July, but the country could still see another record year for output.
Norway produced 63 bcm of gas in H1 2016, 60 bcm of which was exported. This compares with 120 bcm of production and 114 bcm of exports for the whole of 2015. Even if output slows in H2, Norway could still see a record year for production and exports. The Norwegian Petroleum Directorate’s (NPD) forecast for output in 2016 – of 110 bcm – is looking considerably lower than what the country is likely to produce. The NPD’s 2015 forecast was for 108 bcm. Although seasonal maintenance has hit flows from Norway in recent weeks, the outlook is for annual growth to return. This is expected to help pull up European production levels. Total European output is expected to rise by around 1% year on year over the autumn (September-November).