Norway Pumps Hardest Since 2009

NCS oil hits a 16-year high as total resources grow, though investment is set to ease through 2030

30 Mar 2026

Norway's offshore oil sector recorded its strongest output in sixteen years in 2025, according to the Norwegian Offshore Directorate's annual Resource Accounts, released on February 20.

Oil production on the Norwegian Continental Shelf (NCS) reached 106 million standard cubic metres, the highest volume since 2009. Total petroleum resources on the shelf rose to 15,722 million standard cubic metres of oil equivalent, up 111 million on the prior year. Resource growth replaced 60 per cent of production during the year, a figure the Directorate cited as evidence of underlying long-term stability in the resource base.

The results reflect sustained investment in improved recovery techniques, infill drilling, and field life extension. Several NCS fields are now producing between ten and thirty years beyond their original design lives. In 2025, 49 exploration wells were completed, including several that extended beyond ten kilometres in measured depth.

Gas output carries distinct strategic weight. Norway supplies roughly 30 per cent of EU gas consumption and has held the position of Europe's largest gas supplier since Russian pipeline volumes were curtailed. Total gas sales in 2025 reached approximately 120 billion standard cubic metres, with the Directorate projecting production will hold near that level for the next three to four years.

The investment outlook is more cautious. Capital expenditure on the NCS for 2026 is projected at NOK 256 billion, down 6.5 per cent from the prior year, with further gradual declines forecast through 2030 as major development projects are completed. The Directorate identified a growing inventory of undeveloped discoveries, particularly in tight reservoirs, as the central challenge facing operators seeking to sustain output beyond the current decade.

Whether the sector can translate exploration success and technical progress into new production commitments, before investment momentum fades, remains an open question.