Extracts from the speech of Mr Øystein Olsen, Governor of the Norges Bank (Central Bank of
Norway), to the Supervisory Council of Norges Bank and invited guests, Oslo, 12 February
2015.
"Oil prices have fallen by nearly 50 percent since summer. The price decline comes on top of a planned adjustment to a lower activity level in the oil sector. We have experienced that oil prices fluctuate. ..
Market expectations indicate that prices will edge up again from today’s level.
...Low growth in the world economy has restrained growth in oil consumption, while the high prices prevailing in recent years have led to increased supply and more energy-efficient production methods. Last year, growth in global oil demand hit a five-year low, while non-OPEC production was record-high. New shale oil extraction technology has boosted the global supply of oil. Over three years, US oil production rose by more than 50 percent...
Even though the price decline is putting a brake on exploration activity and the development of new fields, we can expect further advances in the new technology and its wider use. Looking ahead, we must prepare ourselves for an environment of lower oil prices compared with the levels seen in recent years...
It would be unwise to act on the assumption that oil prices will again settle around USD 100 per barrel. It has long been clear that activity on the Norwegian continental shelf would decline. The fall in oil prices in recent months has accelerated and amplified an announced decline in activity. Norwegian exporters of oil-related goods and services to other oil-producing nations may also face a decline."
Without risk or responsibility.
"Oil prices have fallen by nearly 50 percent since summer. The price decline comes on top of a planned adjustment to a lower activity level in the oil sector. We have experienced that oil prices fluctuate. ..
Market expectations indicate that prices will edge up again from today’s level.
...Low growth in the world economy has restrained growth in oil consumption, while the high prices prevailing in recent years have led to increased supply and more energy-efficient production methods. Last year, growth in global oil demand hit a five-year low, while non-OPEC production was record-high. New shale oil extraction technology has boosted the global supply of oil. Over three years, US oil production rose by more than 50 percent...
Even though the price decline is putting a brake on exploration activity and the development of new fields, we can expect further advances in the new technology and its wider use. Looking ahead, we must prepare ourselves for an environment of lower oil prices compared with the levels seen in recent years...
It would be unwise to act on the assumption that oil prices will again settle around USD 100 per barrel. It has long been clear that activity on the Norwegian continental shelf would decline. The fall in oil prices in recent months has accelerated and amplified an announced decline in activity. Norwegian exporters of oil-related goods and services to other oil-producing nations may also face a decline."
Without risk or responsibility.
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