Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Inflation pushes Norway’s oil, gas sector to record investments

by Jessica Weisman-Pitts
0 comments
tz lynxmpekadt rtroptp norway oil equinor

OSLO (Reuters) -Investment in Norwegian oil and gas projects will rise to a record this year and may increase further in 2025 as inflation pushes up the costs of development, a national statistics office (SSB) survey showed on Thursday.

Norway in recent years sanctioned a raft of new fields as companies took advantage of pandemic-era tax breaks to fast-track projects, part of a national strategy to extend oil and gas production for decades to come.

The country’s biggest business sector forecast all-time-high investment of 256.1 billion crowns ($22.9 billion) in 2024, broadly in line with its 257.0 billion-crown estimate made in August and exceeding a record of 224 billion crowns from 2014.

Last year investment stood at 215 billion crowns, according to SSB.

Preliminary estimates for oil and gas investments in 2025 stood at 252.6 billion crowns, compared to an August estimate of 240 billion crowns, the survey showed.

The preliminary number for 2025 was 20 billion crowns higher than the corresponding forecast made one year ago for 2024, SSB said, signalling that next year could see another record, as estimates normally rise when companies firm up spending plans.

Oil companies had reported significantly higher expected costs for “some development projects” in 2025, SSB said without giving details on which fields were affected.

“These increased costs will probably not contribute much to expanded production capacity more than initially planned,” the statistics agency said.

The Nordic country’s petroleum production is fiercely opposed by environmentalists and others concerned that carbon emissions from burning oil and gas contributes to climate change.

Norway backs the Paris climate accords and the global goal to transition away from fossil fuels, but also says the world will need access to oil and gas for many years still.

($1 = 11.1654 Norwegian crowns)

(Reporting by Terje Solsvik; editing by Anna Ringstrom and Sharon Singleton)