Norwegian oil investments to hit record high as inflation drives up costs
Statistics office compiles oil, gas investment survey
Norway oil investments to hit record NOK 257 bln in 2024
Adds graphic, comments from stats office in paragraphs 5, 9 and background in paragraphs 2 and 10-12
OSLO, Aug 15 (Reuters) -Norwegian oil and gas investments are expected to hit a record this year and stay at elevated levels in 2025, driven by ongoing field developments and rising inflation, a national statistics office (SSB) survey showed on Thursday.
Norway in recent years sanctioned a string of new field developments as companies took advantage of pandemic-era tax breaks to fast-track projects, part of its strategy to extend oil and gas production for decades to come.
The country's biggest business sector now expects to invest a record 257 billion Norwegian crowns ($23.99 billion) in 2024, up from an estimate of 246.9 billion crowns in May and exceeding a previous all-time high of 224 billion crowns in 2014.
Preliminary estimates for oil and gas investments in 2025 stood at 240 billion crowns, compared with a prior view of 215.8 billion crowns in May.
"Significantly higher costs have now been reported for some development projects than the operators had previously estimated," SSB said in a statement.
The weakening in recent months of the Norwegian currency against the euro and the dollar contributed to raising the cost of investments, it added.
Persistently high oil prices had also led companies to drill more wells at existing fields, potentially speeding up production.
However, there had been no new field development projects added since the May forecasts, which meant that the whole cost increase will be for existing developments, the agency added.
"These are additional investments that are unlikely to contribute to significantly expanding future production capacity beyond what was previously planned," according to SSB.
Investment forecasts normally rise as companies firm up spending plans in the months leading up to a new year.
Norway's petroleum production is fiercely opposed by environmentalists and others concerned that carbon emissions from the burning of oil and gas contributes to climate change.
While Norway backs the Paris climate accords and the global goal to transition away from fossil fuels, it also says the world will need access to oil and gas for many years to come.
($1 = 10.7126 Norwegian crowns)
Norway oil industry eyes record investments in 2024 https://reut.rs/3SNyrLq
Reporting by Nerijus Adomaitis and Terje Solsvik; Editing by Nora Buli and Shounak Dasgupta
Mga Kaugnay na Asset
Pinakabagong Balita
Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.
Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.
Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.
