EnergyWatch

Huge miscalculation led to Norway's opening of Arctic oil

A single typo meant that the permission to drill for oil in the Barents Sea appeared far more economically beneficial than it is actually assessed to be. The Arctic drillings may not be profitable at all.

Photo: Harald Pettersen - Statoil

Last year, Norway opened up for oil and gas extraction in the southeastern part of the Barents Sea. Ahead of this decision, Norwegian authorities had been intent on issuing licenses for exploration drillings in the region, both to position the country against Russia on the other side of the nautical border and because examinations showed that there was a fortune to be made in the Arctic waters.

But these expectations seem to have been based on incorrect presumptions. A simple typo in an Excel spreadsheet meant that the estimated income appeared double – NOK 130 billion (EUR 14 billion) – the actual estimate, reports Norwegian media Teknisk Ugebrev, after the Norwegian Climate Foundation's online magazine Energi og Klima was the first to describe the grave error in the preliminary work.

Already a subscriber? Log in.

Read the whole article

Get access for 14 days for free.
No credit card is needed, and you will not be automatically signed up for a paid subscription after the free trial.

  • Access all locked articles
  • Receive our daily newsletters
  • Access our app
An error has occured. Please try again later.

Get full access for you and your coworkers.

Start a free company trial today

More from EnergyWatch

Vestas awaits clarity on major US green energy funding

After a second quarter that, to put it mildly, was disappointing on order intake, the Danish wind turbine manufacturer intends to maintain its price strategy. Major green energy funding from the US spells promise, but Vestas is waiting for final clarity.

Media: Russia blocks Western utilities' asset sales

According to Russian media Kommersant, the country’s authorities have frozen divestments of, among others, Enel and Fortum’s power plants and wind farms. The Finnish utility is analyzing the situation, however without confirming implication.

Further reading

Related articles

Latest News

See all jobs