Investments in Norwegian oil and gas projects are expected to reach record highs this year with investments expected to remain high in 2025, Reuters has reported.
According to Norway’s office of national statistics, SSB, ongoing developments in the manufacturing, mining and quarrying, and electricity supply in the oil and gas industry are the driving factors behind record investment, estimated at Nkr338bn for 2024.
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This is a 16% increase from estimates made this time last year for 2023.
Norway sanctioned development of new oilfields in recent years, with companies taking advantage of tax breaks during the pandemic, according to Reuters.
The oil and gas industry is the biggest business sector in Norway with investment set to reach Nkr257bn by the end of 2024.
This is an increase from estimates made in May where oil and gas investments were originally projected to reach Nkr246.9bn this year.
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By GlobalDataSSB has reported that, in 2025, investments for the oil and gas industry are estimated at Nkr240bn, an 11% increase from estimates made in May.
The upward adjustment in May estimates, according to SSB, are due to companies experiencing higher production drilling costs within fields on stream. Increased cost for projects has been attributed to weakening Norwegian currency against the euro and dollar.
Rising oil prices have led to an increase in production, despite Norway having no new field development projects since forecasts in May. As there are no new projects, the whole cost increase will come on already existing developments.
Additional investments are unlikely to contribute a significant expansion on future production capacity beyond what is previously planned, SSB said.
Norway’s continued oil and gas production is opposed by environmentalists concerned with carbon emissions contributing to climate change.
