Wood Mackenzie sees good things in Norway

The Norwegian government could pull in $84 billion in taxes from the natural reserves yet to be developed in its territory, analysis from Wood Mackenzie finds.

Energy consulting group Wood Mackenzie said Tuesday it believes there are 10 billion barrels of oil equivalent discovered, but yet to be developed, in Norway. About 60 percent of that could be developed commercially, resulting in $84 billion in taxes and $22 billion in profits for the companies involved.

Norway has more oil reserves than any other European country and is one of the largest suppliers of natural gas to the region.

Wood Mackenzie analyst James Webb said "strict capital discipline" in Norway, however, means some large discoveries might not be developed.

"Despite the obvious obstacles for development, the pipeline for future projects in Norway is strong," he said in a statement Tuesday.

The National Petroleum Directorate, a government regulator, said preliminary production figures for July show an average daily production of 1.93 million barrels of oil, natural gas liquids and condensate, about 8 percent more than was produced in June.

Around 80 percent of that production volume was crude oil. The NPD said oil production was 2 percent higher than what it expected for July, but 3.5 percent lower year-on-year.