Page 17 - Danish Offshore Industry 2016

CHALLENGES AHEAD ! Oil Gas Denmark still believes in a major potential in the Danish sector of the North Sea, but it requires quite an effort to recover the resources. Throughout the decades proft from the North Sea has made a considerable contribution to the Danish Treasury. Since frst oil in 1972 almost DKK 400 billion have been paid as tax and revenues. Quite a considerable amount, claims the branch organization Oil Gas Denmark – even if the drop of the price of oil has limited the fow of money. In spite of the reduced profts – or rather because of this – there is a need for meeting the challenge in the Danish sector and increase investments in order to go on beneftting from the considerable potential in the North Sea. And Oil Gas Denmark is ready to meet that challenge. “We are in a situation where on one hand we have a ma- jor potential in the North Sea, and on the other hand we have an industry which is severely challenged. Oil prices are more than half of what they used to be – a situa- tion no less one could imagine a couple of years ago. At the same we see a decline in production and a drop Martin Peter Næsby, Managing Director. in investments. The Danish sector of the North Sea may not have seen so many sackings and cancelled projects as elsewhere in the world, but less and less wells are being ous adjustment of costs, and we can see the result of this drilled, and it is – as we all know – from the wells that everywhere,” explains Martin Peter Næsby, Managing we recover the oil. Since 2004 we have seen a steady de- Director of Oil Gas Denmark, who feels that in the future cline in numbers, and this challenge is being aggravated the oil & gas industry will still play an important part in by the dropping price of oil. The situation requires seri- our society, even if the preconditions have changed. The revenue created by hydrocarbon tax and company tax is far from the only value we as a society derive from FACTS the North Sea. Just as important is a safe and steady / OIL GAS DENMARK WAS FOUNDED IN 2012 AS supply of energy, export and a large number of jobs. A BRANCH ORGANIZATION FOR COMPANIES IN Not least regionally. That is why we have to focus upon DENMARK DIRECTLY OR INDIRECTLY INVOLVED IN how to turn the trend towards a way that will beneft us PRODUCTION OF OIL AND GAS. all - industry as well as the society,” states Martin Næsby, telling about the domino effect hitting us, when we / THE ORGANIZATION HAS MORE THAN 70 experience such a dramatic drop in the oil prices as we COMPANIES AS ITS MEMBERS. have seen the latest few years. / ITS SCOPE IS TO CREATE ADDED VALUE OF THE “First thing happening when the price of oil drops is that PRODUCTION IN THE NORTH SEA. exploration activities are put on a stand-by, and that is followed up by expensive rig contracts being cancelled. Next ones to be hit are the companies expecting ▲ 15 / CHALLENGES AHEAD !