Norwegian oil investments on track to hit record highs

Norway’s oil and gas investments are expected to reach a record high in 2024, driven by continued field developments and rising inflation. The country’s largest business sector is expected to invest a record 257 billion Norwegian kroner ($23.99 billion) this year, surpassing the previous record of 224 billion kroner in 2014, according to the National Bureau of Statistics (SSB).

The increase in investment costs can be attributed to the weakening of the Norwegian currency against the euro and the dollar and the continued rise in oil prices. These factors have prompted companies to drill more wells in existing fields, which could lead to faster production.

Costs rise despite no new fields

Although no new field development projects have been added since the May forecast, all of the cost increase will come from existing developments. According to SSB, costs have been reported to be much higher than previously estimated for some development projects. These additional investments are unlikely to result in a significant expansion in future production capacity compared to what was previously planned.

The SSB survey showed that initial estimates for oil and gas investments in 2025 are 240 billion crowns, compared with the previous estimate of 215.8 billion crowns in May. The agency noted that investment estimates usually rise as companies make their spending plans in the months leading up to the new year.

The country’s oil production has faced fierce opposition from environmentalists and others concerned about the carbon emissions from burning oil and gas contributing to climate change. Norway supports the Paris climate accords, but it also believes the world will need access to oil and gas for years to come.

With inflation continuing to push up costs, Norwegian oil investment is expected to remain at high levels in 2025. The country’s strategy is to expand oil and gas production over the coming decades, making significant investment a necessary part of the plan.

Key points

• Norwegian oil and gas investments will increase. anticipation To reach a record level in 2024.
• The increase in investment costs can be attributed to the weakening of the Norwegian currency against the euro and the dollar, as well as the continued rise in oil prices.
• Although no new field development projects have been added since the May forecast, all cost increases will be related to current developments.

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