05.07.2022, 11:39
A European Country Has Started to Stop Oil Production
Source: OREANDA-NEWS
OREANDA-NEWS Norwegian oil and gas company Equinox has suspended the operation of three fields in the North Sea due to a strike by employees of the sector, according to the company's website. Earlier, amid instability in international energy markets, Norway and the European Union agreed to increase fuel supplies to European countries.
The stoppages of oil and gas enterprises are connected with the strike of the united employees of the sector, dissatisfied with the size of salaries indexed in the spring. Workers did not agree with the initial increase of 4-4.5 percent, since such a surcharge cannot compensate for rising inflation, which accelerated to 5.7 percent in May, Reuters writes. On July 5, the first strike began, the employees also announced that they would continue the action on July 6 and July 9, which is why the work of the fields will be suspended for an unknown period.
The closure of the Gudrun, Oseberg South and Oseberg East fields will lead to a reduction in fossil fuel production by about 89 thousand barrels of oil equivalent per day. Of these, 27.5 thousand barrels per day are accounted for by natural gas. In addition, the company plans to stop working at the Heidrun, Kristin and Tyrihans, Aasta Hansteen fields — due to their closure, Equinor will not be able to produce another 333 thousand barrels of oil equivalent per day (264 thousand barrels are accounted for by gas).
Thus, daily oil production at the moment may decrease by 130 thousand barrels, and gas production — by 292 thousand barrels, or 13 percent of the total volume on the Norwegian continental shelf, the Norwegian Oil and Gas Association (NOG) reported on July 3. With the closure of the Sleipner, Gullfaks A and Gullfaks fields from July 9, oil production will be reduced by another 160 thousand barrels of oil equivalent per day and gas by an additional 230 thousand barrels.
Against the background of the suspension of work at the fields, Equinor incurs daily losses in the amount of 521 million Norwegian kroner (52.1 million dollars), according to the Association of Employers of the Norwegian Oil and Gas Industry.
The stoppages of oil and gas enterprises are connected with the strike of the united employees of the sector, dissatisfied with the size of salaries indexed in the spring. Workers did not agree with the initial increase of 4-4.5 percent, since such a surcharge cannot compensate for rising inflation, which accelerated to 5.7 percent in May, Reuters writes. On July 5, the first strike began, the employees also announced that they would continue the action on July 6 and July 9, which is why the work of the fields will be suspended for an unknown period.
The closure of the Gudrun, Oseberg South and Oseberg East fields will lead to a reduction in fossil fuel production by about 89 thousand barrels of oil equivalent per day. Of these, 27.5 thousand barrels per day are accounted for by natural gas. In addition, the company plans to stop working at the Heidrun, Kristin and Tyrihans, Aasta Hansteen fields — due to their closure, Equinor will not be able to produce another 333 thousand barrels of oil equivalent per day (264 thousand barrels are accounted for by gas).
Thus, daily oil production at the moment may decrease by 130 thousand barrels, and gas production — by 292 thousand barrels, or 13 percent of the total volume on the Norwegian continental shelf, the Norwegian Oil and Gas Association (NOG) reported on July 3. With the closure of the Sleipner, Gullfaks A and Gullfaks fields from July 9, oil production will be reduced by another 160 thousand barrels of oil equivalent per day and gas by an additional 230 thousand barrels.
Against the background of the suspension of work at the fields, Equinor incurs daily losses in the amount of 521 million Norwegian kroner (52.1 million dollars), according to the Association of Employers of the Norwegian Oil and Gas Industry.
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