Norway’s promise to consider reducing oil production – if implemented – could affect the country’s associated gas production, but gas market dynamics are more likely to dictate Norwegian gas behavior in the near future, writes S&P Global Platts.

Oslo has said it will consider reducing oil production, provided that the agreement between OPEC+ countries is implemented as part of a global effort to offset the demand collapse caused by the coronavirus pandemic.

According to S&P Global Platts Analytics, the oil cut that Norway will take could reach 300,000 barrels per day.

Reducing production could put some pressure on oil-related gas production, but it could also reduce gas re-injection, which would free up more of that export resource, S&P Global Platts said.

The weaker demand for gas for re-injection in oil production combined with the delay in maintaining gas assets due to the coronavirus will offset the loss of oil-related natural gas.

“Gas market dynamics are likely to have a greater impact on gas production than oil production”, said the analysts of S&P Global Platts.

In February, Norway’s average gas production reached 344 million cubic meters per day, with production falling below 300 million cubic meters per day in the last two weeks.