DANISH OFFSHORE RISING TO THECHALLENGE

Over the years it has been a great advantage for Denmark to have an energy supply based on several elements including both domestic production of oil and gas and on renewable energy – this remains the case.
The value created by the Danish offshore production is of great importance to our industry – and to the Danish economy.
I am convinced that the production of oil and gas from the North Sea will continue to play an important role in Denmark’s energy supply for many years to come while we continue gradually to increase the share of renewable energy.
Looking to the oil and gas sector, we are indisputably faced with a number of challenges.
The price of oil has dropped significantly during the latest years and at the same time the production of oil and gas from the North Sea has declined since 2004. However, while the North Sea is now a more mature basin, an unneglectable commercial potential still remains and hence it is essential that our oil and gas resources are developed and produced while the necessary infrastructure is available.
Continued exploration for new discoveries is another important element in order to reduce the decline in production. In order to capture all the aspects of declining production, aging infrastructure, exploration opportunities, and challenges for suppliers and service industry etc., the Government – in close cooperation with Oil Gas Denmark – is developing a strategy for the future of Danish oil and gas production.
The work is in its final stage and let me in this regard underline that the industry’s contribution is highly appreciated and forms the basis for continued close cooperation.
Last year has been unkind to the oil and gas industry.
Nevertheless, I am confident that the industry has the ability to adapt to current circumstances. Continued cooperation between us all is central for the further development of the Danish sector of North Sea.
The work on the strategy for the future oil and gas production is a good example of how we can move forward together on important issues. The offshore oil and gas industry is also closely linked to offshore wind power, which is booming in these years all over Europe.
After a very successful tender for the Horns Rev 3 offshore wind farm in the North Sea, I am now looking forward to the outcome of the tender for the offshore wind farm Kriegers Flak in the Baltic Sea. We have the highest number of prequalified tenderers ever in Danish wind history.
I am pleased with the fact that we are opening the Danish market for several new foreign players, who choose to invest in Denmark for the first time. So to sum up: The Danish offshore sector is of great importance to our economy.
Both the upcoming and the more mature parts of the offshore sector are facing challenges, but I remain convinced that all actors are committed to – and capable of – rising to the challenges.
I am encouraged by the new forms of cooperation taking place and I am certain that this will help develop the sector further to the mutual benefit of industry and society.
 
"Lars Chr. Lilleholt, Minister of Energy, Utilities and Climate"

 

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