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Denmark to Resume Oil Imports After 24 Years

Denmark to Resume Oil Imports After 24 YearsDenmark to Resume Oil Imports After 24 Years

After 24 years, Denmark will start importing oil again, primarily due to lower production in the North Sea area.

Last year, Denmark was self-sufficient in oil. As oil production is expected to fall by 8%, Copenhagen will resume imports for the first time since 1993, Sputnik reported.

The drop in production has been attributed to the reconstruction of the offshore platforms in the North Sea Tyra field, which was discovered in the 1960s and has been in use since the 1980s.Tyra field has long been plagued by a sinking seabed due to decades of oil production. The reconstruction of Tyra field, which is plagued by an insecure and descending seabed after several decades of gas production, will mean a decline in oil production by 2020 and 2021.

"This is a milestone. For a long time, we have been self-sufficient and produced more that we actually used. This has had an impact on Danish economy," Nordea chief analyst Jan Storup Nielsen said. "We had a long period of time when we harvested big revenues for Denmark. This gave a good boost to public finances and a surplus of balance payments."

In its updated forecast, the Danish Energy Agency has lowered future oil production by 8% compared with last year's forecast. "Although it is far from a catastrophe, it is a question of billions. They are going to be missing," Nielsen explained.

While Denmark is predicted to remain a gas exporter until around 2035, the Danish Energy Agency wrote down its forecast of estimated oil reserves by 4 million cubic meters to 139 million cubic meters, which corresponds to 18 years of consumption.

 

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