Oil and gas are important to the Danish economy
Denmark has produced oil and gas from the Danish part of the North Sea since 1972. Oil and gas production still contributes significantly to state revenue. Thus, the tax revenue, exports and profits generated by the oil and gas sector have had a major impact on the Danish economy and helped build the Danish welfare state.
Denmark has been a net exporter of oil and natural gas since 1997. Forecasts show that Denmark will remain a net exporter until the 2020s.
In the past 50 years, oil companies have invested vast sums in the exploration, development and operation of Danish oil and gas fields. Moreover, the oil and gas activities have created workplaces for numerous people on the oil and gas platforms in the Danish part of the North Sea and in onshore offices.
Oil and gas production in the North Sea
More than 55 platforms are carrying on production in 19 oil and gas fields in the Danish part of the North Sea. Total E&P DK is the operator in charge of production from 15 fields, while Ineos is the operator of three fields and Hess the operator of one field.
Data and oil and gas forecasts
The DEA publishes monthly production figures for all the oil and gas fields in the Danish part of the North Sea. The figures are based on the data that the DEA receives from the operators.
The DEA also prepares an assessment of Danish oil and gas reserves as well as oil and gas production forecasts. Moreover, economic forecasts of state revenue and the oil companies’ investments are drawn up.
The DEA publishes an annual report on Denmark’s oil and gas production and other uses of the subsoil. The report provides an overview of all the activities and outlines the potential of the Danish oil and gas sector.
Exploration and production require a licence
Oil and gas exploration and production require special permission from the Danish state in the form of a licence. A licence grants a company or a group of companies the right to explore for and produce oil and gas from a certain area in the Danish subsoil.
The DEA supervises the exploration and production comprised by the licences and approves plans for the development of fields and drilling of wells, among other activities. Moreover, the DEA is under a duty to publish information about the oil companies’ production and specific information related to environmental approvals, etc.