According to Statistics Norway, Norway’s total investment in the oil and gas industry as of August 15 amounted to $23.91 billion (NOK 257 billion), up 4.1 percent from the previous quarter’s estimate.
The total investment also includes figures for pipeline transport, the government agency said in a press release.
According to Statistics Norway, the increase is mainly due to higher cost estimates for production drilling in operating fields. Oil companies’ investment estimates for this year are also 21 percent higher than the corresponding estimate from the third quarter of 2023.
Capital expenditure for 2025 is now estimated at $22.33 billion (NOK 240 billion), which is 11 percent higher than estimated in the previous survey in May. The 16 percent increase is largely due to higher estimates in the operating fields and field development categories. The increase was significant in the operating fields, field development, pipeline transportation, and decommissioning and removal categories. At the same time, estimates for exploration and onshore activities are declining.
Investments in oil and gas production and pipeline transport are now estimated at $23.91 billion (NOK 257 billion) for 2024. This is the highest nominal estimate since the statistics were introduced and is 4.1 percent higher than the previous survey, the agency reported.
Statistics Norway noted that many field developments that began towards the end of 2022 are now in their second full year, adding that activity increases sharply in the first year and often reaches a peak in the second or third year of development.
The investment estimate for production wells in fields already in operation has increased by as much as 24 percent. Several drilling plans linked to this summer’s budget update may have been triggered by persistently high oil prices, the agency said.
The estimate for investments in pipeline transportation and oil and gas production for 2025 increased by 16 percent compared to the corresponding estimate for 2024 given in the third quarter of last year.
In addition, investments increased by 23 percent in the first half of the year compared to the same period in 2023. The agency said it expects investments of $12.84 billion (NOK 138 billion) for the second half of the year, an increase of about 16 percent.
The agency added that the increase in the second half of the year was mainly due to the planned increase in activity in operating fields, including production wells. “High oil prices nevertheless provide strong incentives to implement plans for increased activity in production wells,” it said.
According to data from the Norwegian Offshore Directorate, Norway produced 122.9 million cubic meters (4.3 billion cubic feet) of oil equivalent in the first half of 2024, 6.2 million cubic meters more than in the same period last year.
Average daily gas production in June exceeded the government forecast by 6.5 percent. Last month’s figure rose from 252.6 MMcmpd (8.9 Bcfpd) in June 2023 and 322.2 MMcmpd (11.4 Bcfpd) the previous month.
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