Oil and natural gas production
In 2008 approximately 16,7 million m3 of oil and about 9,9 billion Nm3 of natural gas was extracted from Danish North Sea fields totalling approximately 1100 PJ: enough to heat around 11 million detached houses.
As Denmark's total energy requirement is 874 PJ (2007), oil and natural gas production in the North Sea is more than adequate to cover its needs. This situation makes Denmark not only self-sufficient but also a net exporter of energy.
In order to explore and extract oil and natural gas a permit is required by the Underground Law. Through such authorization or concession one or more companies acquire the right to explore for oil and gas within a defined area. In Denmark, concessions are usually awarded in the bidding rounds and via an Open Door procedure, as implemented by the Danish Energy Agency.
The state makes a significant amount of tax revenue as a result of oil and gas extraction via the North Sea Agreement, entered into in September 2003 with A.P. Moller-Maersk as a continuation of the exclusive rights concession granted up until 2042. The total production value in 2008 was DKK 67 billion, which gave the government an income of around DKK 35,9 billion.
Denmark continues to be self-sufficient in and a net exporter of energy. The latest forecasts foresee our being self-sufficient in oil through the year 2018 and self-sufficient in natural gas through the year 2020.