Oil search “too expensive” in Denmark

A new North Sea strategy is expected to be completed sometime by May 2015

Faroe Islands, the town of Gjogv (photo: Vincent van Zeijst)
April 25th, 2014 5:14 pm| by admin
facebooktwittergoogle_pluspinterestmail

The Danish state’s oil and gas company, Nordsøfonden, has announced that the search for oil in the Danish areas of the North Sea are too expensive, Berlingske newspaper reports.

During a meeting yesterday at which the energy authorities, Energistyrelsen, opened up the seventh bidding round for offshore drilling permits in the North Sea, Peter Helmer Steen, the head of Nordsøfonden, voiced his discontent.

“The costs associated with drilling and building new platforms in Denmark are far too steep,” Steen said according to Berlingske.

“They need to go down if we want more resources extracted. We can see that some of our drilling costs are twice as high in Denmark as they are in other countries.”

READ MORE: Future gas will come from abroad

High standards
The high costs in Denmark could stem from the technical areas – such as the number of days it takes to drill – and expenses associated with supply ships, but part of the cost comes from the necessary requirements now needed to operate rig equipment.

The steep costs have weakened competition in Denmark, and stringent regulation is an area that the authorities will look into when they develop a new strategy for oil excavation in the North Sea.

That strategy is expected to be completed sometime by May 2015.

Older people should get more to dance about, says poll (photo: Bill Branson)
Danes want more money spent on the elderly
More money should be spent on taking care of the elderly, even if it means ...
Cirkus Summarum ...  as you will clearly recognise from the commercials on the non-commercial broadcaster (photo: Nico)
DR’s circus accused of unfair competition
Danmarks Radio's Cirkus Summarum – which the national radio and TV broad...
(photo: Bengt Nyman)
Early August Music: The singer Denmark’s opened its heart to
Beth Hart Mon Aug 3, 20:00; Amager Bio; 295kr Grammy-nominated Americ...
A jogger found the body of a man along the shoes of Kolding Fjord this morning (Photo: BillyDK)
Man found dead near Kolding Fjord
A jogger taking a run early this morning found the body of a middle-aged ma...
It's just a figure of speech (photo: BlueHypercane761)
Blue moon on the rise tonight (don’t see it standing alone!)
You might use the expression 'once in a blue moon', but do you have any ide...
Listeria found in fish creating problems for producer (photo: Lebensmittelfotos)
Danish fish producer unhappy with food authorities
In recent months, four people have been infected with the deadly Listeria v...