Economy for oil and gas

Oil and gas production from the Danish part of the North Sea is of great socio-economic significance. Danish society benefits from the tax revenue deriving from North Sea oil and gas production. Danish oil and gas production also contributes positively to Denmark’s balance of trade and payments. 

In addition, Danish society gains from the spending power generated by the jobs in the oil and gas sector – because oil and gas production creates workplaces for thousands of people, both on- and offshore.

State revenue 

State revenue from the North Sea activities derives from three elements.  

State revenue from the North Sea activities derives from hydrocarbon tax (a rate of 52 per cent) and corporate income tax (a rate of 25 per cent).

In addition to taxes and fees, the Danish state receives revenue from the North Sea through Nordsøfonden, which has managed the state’s 20 per cent share of all new licences since 2005. Since 9 July 2012, Nordsøfonden has also managed the state’s 20 per cent share of Dansk Undergrunds Consortium (DUC), whose other partners are A.P. Møller - Mærsk, Shell and Chevron.

State revenue from hydrocarbon production in the North Sea aggregated about DKK 404 billion in 2014 prices in the period 1973-2014. Total state revenue for 2014 has been calculated at DKK 18.8 billion. 

Value of oil and gas production

The value of oil and gas production is determined by several factors: the supply and demand for oil and gas, the dollar exchange rate and the volume of production. 
The cumulative production value for the period 1963-2014 has been calculated at DKK 1,010 billion in 2014 prices. The total value of Danish oil and gas production in 2014 is estimated at DKK 40.7 billion. Oil production accounts for about DKK 33.6 billion and gas production for DKK 7.1 billion of the total production value. 

Investments and costs

Oil and gas production requires large, long-term investments. In the past 50 years, oil companies (licensees) have invested heavily in exploring, developing and operating Danish fields. The present and future levels of activity – and thus investment in exploration and operations – affect potential income for many years ahead. 

The aggregate value of the licensees’ expenditures for exploration, field developments and operations in the period between 1963 and 2014 slightly exceeded DKK 355 billion (2014 prices), which averages close to DKK 7 billion a year. 

A breakdown of the licensees’ costs is available here.


Financial Key Figures

Financial Conditions

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Kirsten Lundt Erichsen
Special Advisor (+45) 3392 6873