Oil and gas in Denmark

Oil and gas have been produced from the Danish part of the North Sea since 1972, when the Dan field started production. Since then, oil and gas companies have invested huge sums in exploration, which have resulted in the development of a total of 21 oil and gas fields. Denmark has thus been an oil and gas-producing nation for half a century.

The Danish production of oil and gas benefits Danish society in several ways. For example, it generates revenue for the state, creates jobs and helps assure a reliable supply of energy.

Oil and gas have a key role to play in modern society and they have a significant effect on everyday life - often without people giving it a second thought. In addition to providing households with electricity and heating, oil and gas are used in the production of everything from cycling helmets to medicines, nylon stockings and petrol.

Revenue for the state

For decades now, revenue from the production of oil and gas has made Danish society more affluent and contributed to the development of our welfare.

Figures from the Danish Energy Agency reveal that in the period 1972–2020, the state received almost DKK 544 billion in revenue from the oil and gas sector alone. This is sufficient to have paid for the Great Belt Bridge more than 20 times over.

Furthermore, oil and gas production creates jobs for a great many people, both on land and offshore on the oil and gas platforms in the Danish part of the North Sea.

Investments in oil and gas production are typically targeted far into the future, and production from the Danish oil and gas fields is expected to make a significant contribution to the Danish treasury for years to come.

In the period 1972–2020, the Danish state received DKK 544 billion from the Danish oil and gas sector.

In 2023 47% of Danish energy consumption was covered by oil and gas, while sustainable energy contributed 45%.

The Danish production of gas is expected to exceed the consumption from 2024 until about 2040.

Reliable supply of energy

Oil and gas production from the Danish part of the North Sea has been developed and expanded continuously since the 1970s. In 1997, Denmark became a net exporter of oil and gas, and has thus been producing more oil and gas than it has used for many years. This has had a major impact on both the Danish economy and Europe's supply reliability.

The Danish production of oil and gas means that Denmark and Europe is less dependent than many other countries on the world’s biggest oil and gas-producing nations, and “in-house” production of energy can prove to be a major benefit in geopolitically uncertain times.

According to the Danish Energy Agency, the Danish production of gas is expected to exceed the consumption from 2024 until at least 2040. Denmark has been a net importer of oil since 2018.

Responsible production of the necessary oil and gas

Denmark is well under way with the green transition. Figures from the Danish Energy Agency reveal that in 2023, sustainable sources of energy covered almost 45% of total Danish energy consumption, while oil and gas accounted for almost 47%.

There can be no doubt that the production and consumption of fossil fuels has an impact on our environment and climate, and that the ultimate objective is a fossil-free society. Denmark will nevertheless continue to need a variety of sources of energy during the transition phase, until alternatives to fossil fuels have been developed and rolled out in all areas of society.

Forecasts from the Danish Energy Agency published in 2023 indicate that oil and gas will cover more than 30 % of total Danish energy consumption in 2030. Oil and gas will therefore still be needed for years to come – for transport, heating and as a raw material in the manufacture of products such as medicine, paint and plastics.

In the same way as other industries, the oil and gas sector has a significant contribution to make to the green transition. For example, gas can replace coal and diesel, thus helping cut carbon emissions. At the same time, the oil and gas sector will continue to focus on ensuring that activities linked to production are carried out responsibly, so as to limit the environmental footprint of the production.

Own production of oil and gas in the Danish part of the North Sea will contribute billions of DKK to the Danish state for years to come, and this revenue can be used to help finance the green transition.

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Nordsøfonden has paid a total of almost 25 billion DKK in tax and dividends in 2012-2023 

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Nordsøfondens taxes and dividends to the Danish state for 2023 amounts to 622 million DKK