Norway Doubles Down on Oil and Gas
After hitting record highs this year, Norway’s oil and gas investment is expected to grow even higher in 2025. Greater development activity on new projects and the cost of inflation have contributed heavily to the increase in Norway’s oil and gas investment in 2024. Norway’s oil and gas investment is expected to total around $22.9 billion this year, marking an all-time high, according to the country’s statistics office. The previous record was $20.4 billion in 2014 when oil prices were very high and companies were still spending heavily on new oil and gas projects. The increase in investment supported new exploration activity, pipeline transportation, and shutdown and removal. The Scandinavian oil superpower is expected to continue investing heavily in fossil fuels in the coming years. Oil and gas companies operating in Norway expect to invest an estimated $24.68 billion in 2025, the industry association Offshore Norge announced in December. The group surveyed 14 companies, including Equinor, Aker, Vår Energi, ConocoPhillips, and Shell, representing almost the entirety of the country’s oil and gas output. Companies plan to commence drilling on 45 exploration wells in Norwegian waters in 2025, an increase from 41 this year and the highest level since 2019. The increase in new exploration projects reflects the growth in demand for natural gas from Norway, following the Russian invasion of Ukraine and subsequent sanctions on Russian oil. Norway is Western Europe’s largest oil and gas producer, with an output of more than 4 million bpd, and the government aims to continue increasing production for several decades. In December, Vår Energi and Equinor announced they had made a new oil discovery at their Cerisa exploration well near an operational asset in the Barents Sea. The operators estimate the discovery holds between 1.3 and 4.8 million standard cubic meters of recoverable oil equivalent. This marked the fourth find in a row in the region. Alongside previous discoveries in Gjøa North and Ofelia/Kyrre, Cerisa could be tied into the Gjøa field using existing infrastructure in the area. This would provide combined estimated gross recoverable resources of up to 110 MMboe. In addition to new exploration activities in Norway’s waters, Equinor also announced plans in December for a new 50/50 joint venture with Shell that will see the merging of their U.K. fossil fuel assets to create the largest independent oil and gas producer in the U.K. North Sea. The two companies announced in a joint statement that the new venture will help “sustain domestic oil and gas production and security of energy supply in the U.K.” The statement went on to say, “With the once prolific basin now maturing and production naturally declining, the combination of portfolios and expertise will allow continued economic recovery of this vital U.K. resource.” Norway has justified its oil and gas expansion by investing in ‘low-carbon’ oil projects, which incorporate decarbonization techniques, as well as through its heavy investment in green energy projects. Norway is now the largest and lowest emissions supplier of oil and gas in Europe. This is largely thanks to the electrification of the country’s upstream operations, using Norway’s extensive hydropower. By 2026, Wood Mackenzie forecasts that over 60 percent of Norwegian production will be electrified. New energy market intelligence research from Rystad’s Palzor Shenga and Elliot Busby suggests that the electrification of fossil fuel operations can significantly reduce upstream oil and gas emissions. The research shows that over 80 percent of emissions generated from upstream oil and gas production facilities can be cut by using electricity from renewable resources or natural gas that would otherwise be flared. Shenga, the vice president of upstream research at Rystad, stated, “As the world confronts the pressing issue of climate change, the oil and gas industry is under increasing pressure to minimize its carbon footprint and align its practices with global sustainability objectives. Where it’s possible and economically viable, electrification has great potential to lower the industry’s emissions while maintaining production output.” Norway has invested heavily in renewable energy in recent years. Its grid runs almost entirely on green energy sources, and it has also funded projects in other parts of the world. For example, in June Norway’s Sovereign Wealth Fund purchased a $418 million stake in the 573 MW U.K. wind farm Race Bank. The Norwegian Investment Fund for Developing Countries also announced an investment of $19.9 million in three wind farms with a total capacity of 420 MW in South Africa, to be built by EDF Renewables. Nonetheless, many question whether Norway should be seen as a climate hero or as a carbon villain. The International Energy Agency has repeatedly said that further fossil fuel exploration is not compatible with its scenarios for reaching net zero emissions by 2050, meaning that Norway’s oil and gas investment is at odds with its aims for a green transition, despite its decarbonization and carbon offset efforts. Yet it seems that Norway wants to have its cake and eat it by continuing to invest heavily in oil and gas while also providing significant funding for decarbonization and a green transition.
India’s operational natural gas pipeline expands by 62.6%, development of 10,805 km under execution: Ministry
The length of operational natural gas pipeline in the country has increased from 15,340 kilometres (Kms) in 2014 to 24,945 Kms, a whopping 62.6 per cent as of September 10, 2024, the Ministry of Petroleum & Natural Gas said in its year-end review of the last year. The ministry stated that the development of about 10,805 km of natural gas pipeline is under execution. With the completion of these pipelines authorised by The Petroleum and Natural Gas Regulatory Board (PNGRB), the national gas grid would be completed and would connect all major demand and supply centres in India, the ministry stated. The move will ensure easy availability of natural gas across all regions and also help to achieve uniform economic and social progress. On January 7, the ministry stated that PNGRB has amended PNGRB (Determination of Natural Gas Pipeline Tariff) Regulations to incorporate the regulations pertaining to Unified Tariff for natural gas pipelines with a mission of “One Nation, One Grid and One tariff.” PNGRB has notified a levelized unified tariff of Rs 80.97/MMBTU w.e.f. June 1, 2024 and created three tariff zones for the unified tariff, where the first zone is up to a distance of 300 km from the gas source, the second zone is 300-1200 km, and the third zone is beyond 1200 km. The national gas grid covers all the interconnected pipeline networks owned and operated by entities, viz., Indian Oil Corporation Limited, Oil and Natural Gas Corporation Limited, GAIL (India) Limited, Pipeline Infrastructure Limited, Gujarat State Petronet Limited, Gujarat Gas Limited, Reliance Gas Pipelines Limited, GSPL India Gasnet Limited and GSPL India Transco Limited. The reform will especially benefit the consumers located in the far-flung areas where currently the additive tariff is applicable and facilitate the development of gas markets and the vision of the government to increase the gas utilisation in the country, the ministry stated. PNGRB has authorised 307 geographical areas for the development of City Gas Distribution (CGD) infrastructure with a potential coverage of about 100 per cent of the country’s area and 100 per cent of the population. As of September 30, 2024, the total number of PNG (D) connections and CNG stations in the country was 13.6 million and 7259, respectively. The ministry added that to cater to the growing demand of the CGD sector and to protect the common people from price volatility, the government has released new CGD sector gas allocation guidelines wherein the allocation of the PNG (domestic) segment was increased (i.e., 105 percent of PNGD consumption in the previous quarter) and the balance available volume is to be supplied to the CNG (T) segment on a prorate basis.
NTPC’s clean energy arm to build $21 billion green hydrogen hub
The clean energy unit of NTPC Ltd., India’s largest thermal power producer, is developing a green hydrogen hub at an estimated cost of Rs 1.8 trillion ($21 billion) as the country seeks to add more carbon-free fuel to meet its needs. NTPC Green Energy Ltd. is developing the project at Pudimadaka, near the city of Visakhapatnam, in the southern state of Andhra Pradesh. This is the first such project under India’s National Green Hydrogen Mission, a government statement said Monday. Prime Minister Narendra Modi will lay the foundation stone for the project on Jan. 8, the statement said. Green hydrogen is produced by using renewable energy to split hydrogen and oxygen atoms in water. India aims to lift green hydrogen production to 5 million tons a year by 2030 from almost zero currently under a strategy to decarbonize heavy industries — including refineries and steel mills — and to become a major supplier of the fuel to global markets. The goal is being championed by state energy giants, such as NTPC as well as billionaires Gautam Adani and Mukesh Ambani.
PNGRB proposes uniform insurance coverage for PNG and CNG consumers
The Petroleum and Natural Gas Regulatory Board (PNGRB) has proposed a uniform insurance policy for piped natural gas (PNG) and compressed natural gas (CNG) consumers, comparable to the insurance coverage provided to LPG users. This proposal was discussed during an open house meeting held on December 20, 2024, with participation from eight city gas distribution (CGD) entities and other stakeholders. e PNGRB emphasized the growing need for safety and risk coverage as PNG usage expands across India. With over 10 million PNG connections and more than 5,000 CNG stations as of November 2024, the sector is experiencing significant growth. “With the rapid shift of LPG consumers to PNG due to growing infrastructure, it is essential that PNG consumers receive similar insurance benefits,” said Lt Col Kumar Abhishek, Director (CP & CGD), PNGRB. Currently, insurance coverage in the CGD sector varies among entities. HPCL highlighted its existing public liability insurance for employees at CNG stations, supplemented by contractors’ policies. AG&P Pratham outlined a comprehensive general insurance framework covering risks such as gas leaks and equipment failures, while Indian Oil Adani Gas Pvt. Ltd. stated that it maintains an insurance cover of ₹200 milion under Public Liability (PL) and Commercial General Liability (CGL) policies. Adani Total Gas Ltd. reported a premium of ₹250 million for its PL and CGL policies, noting the need for a collaborative approach to reduce costs and extend coverage.
India’s Petroleum Demand To Grow 3-4% In FY25: Fitch
India’s petroleum products demand is expected to rise by three to four percent in the financial year ending March 2025, lower than five percent growth in FY24, according to a report by Fitch Ratings. The growth in the current fiscal is supported by rising consumer, industrial and infrastructure demand, the rating agency said in the report, projecting India’s GDP growth at 6.4 percent in FY25. The growth in petroleum product demand is likely to be broad-based, with diesel and petrol accounting for the majority, it added. For India’s oil marketing companies (OMCs), refinery margins are expected to fall below their mid-cycle levels in FY25 amid lower product cracks, regional oversupply, and lower benefits from price differences between crude varieties, it said. However, marketing margins would be healthy on lower Brent crude oil prices than FY24. “This will mitigate the pressures from lower refining margins for the OMCs, although pure refiners like HPCL-Mittal Energy Limited’s (HMEL, BB+/Stable) will face greater pressure on profitability. We expect refining margins to recover to their mid-cycle levels in FY26, as the regional oversupply eases and Brent crude oil prices fall in line with Fitch’s assumption, while we project marketing margins to remain supportive. HMEL’s low rating headroom in FY25 will improve in FY26 due to a gradual normalisation in refining margins,” the report said
India’s fuel consumption surges in 2024, driven by higher petrol demand
India’s fuel demand saw an uptick in 2024 as the country’s energy consumption continues to grow amid the aim of becoming a ‘Viksit Bharat’ by 2047. According to the oil ministry data, India’s petrol consumption rose by almost 8 percent in the year till November from the previous year, while diesel—the most consumed petroleum product in the country—witnessed a growth of 2.4 percent in the same period. The increased fuel consumption of the country could be attributed to the rise in industrial activity and economic growth. In 2024, India’s diesel consumption reached 83,087 tonnes by November, according to official data, while petrol consumption stood at 36,137 tonnes during the same period. Domestic demand of other petroleum products such as aviation turbine fuel (ATF) and liquefied petroleum gas (LPG) also saw significant growth in the year. The growth momentum in demand of diesel—mainly used by trucks, commercially run passenger vehicles and farm machinery—was relatively steady in the year majorly due to prolonged monsoons in the year and a change in consumption pattern. Amid expanding middle class and rising consumer spending, India’s petrol demand is picking up over diesel. Amid rising demand, India’s oil companies including Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) have plans to set up new refineries while increasing capacity of existing refineries.
Oil and gas industry set for long-term benefits with digitalisation: Report
Certain technologies, such as artificial intelligence (AI), blockchain, cloud computing, the Internet of Things (IoT), robotics, and virtual and augmented reality (VR and AR), are now part of the oil and gas industry The GlobalData’s report, titled ‘Digitalisation in Oil and Gas,’ highlights the role of major oil and gas companies, such as ADNOC, BP, Chevron, ExxonMobil, Shell, and TotalEnergies, in the development and adoption of digital tools to solve business problems. “Field personnel are extensively using handheld devices to gather data, make notes, and communicate with their team. These changes are aimed at cutting down inefficiencies in workflows for improved productivity and lower costs,” said Ravindra Puranik, oil and gas analyst at GlobalData. Operational risks are also reduced due to a lesser need for human intervention in hazardous environments, which is a very important benefit of digitalisation. The adoption of digital technologies is also expected to deliver intangible value in the form of emission reductions. A recent poll from GlobalData indicated that companies were deploying digitalization to lower their operational emissions. With worries over climate change increasing every year, managing emissions has become critical for the industry.
Oil Demand Stays Strong Despite EV Surge
In the new hit TV show “Landman”, the lead character, Tommy Norris, delivers a five-minute speech that summarizes just how critical for modern civilization crude oil is. Everything, up to and including wind turbines, depends on oil. This year, with record EV sales in China and the continued build out of wind and solar in Europe, has proven just how pertinent that speech is to the current state of the energy transition-or the absence of it. About a month ago, the World Bank predicted in a blog post that crude oil demand would hit 103 million barrels daily in 2024. What the World Bank noted was that this number represented slowing demand. What the World Bank did not mention was that the number also represented another all-time high for oil demand. In its latest monthly oil market report, the International Energy Agency, another doomsayer for oil demand, said demand was about to actually pick up in 2025, rising from this year’s estimated 840,000 barrels daily to 1.1 million barrels daily. The IEA attributed the pick-up to the increase in demand for petrochemical products that would offset lost demand from the transport sector. Yet even demand from the transport sector is not shrinking anywhere near the rate that was predicted. China has cemented its place as the world’s number-one market for electric vehicles. These constitute increasingly large portions of total car sales. July 2024 was the first month ever in which so-called new energy vehicle sales exceeded ICE car sales. Since July, China has consistently marked months of EV sales, holding more than 50% of new car sales
India’s oil import bill drops despite rising import volumes
India’s oil import bill has seen a reduction year-on-year for the months of September, October, and November, despite an increase in import volumes, according to data from the petroleum Ministry. This marks a shift from earlier in the fiscal year when the value of oil imports had been higher compared to the same period in the previous year. During the September-November period, India’s oil imports decreased by 9 percent in value terms, totaling USD31.2 billion. However, import volumes increased by 4.4 percent to 57.2 million tonnes, as reported by the Petroleum Planning & Analysis Cell. The value decline was most significant in November, where it fell by 13 percent, followed by a 10.9 percent drop in October and a 2.8 percent decrease in September, when compared to the same months of the previous fiscal year. Despite the fall in import costs, volumes continued to rise, with November seeing a 2.7 percent increase, October a 4.3 percent increase, and September a 6.3 percent rise. This trend reflects India’s growing demand for oil, driven by softer global crude prices.
Qatar agrees to supply LNG to Gail India in five-year deal
Qatar will supply liquefied natural gas to Gail India Ltd. from next year under a new five-year pact, according to people with knowledge of the matter. India’s state-owned company will receive one LNG shipment a month from April 2025 until March 2030, said the people, who asked not to be identified because the information is not public. The deal was concluded as part of a tender that closed earlier this month. Qatar is already India’s largest LNG exporter, providing roughly half of the South Asian nation’s total purchases last year. Gail India and QatarEnergy didn’t immediately respond to a request for comment.