Norwegian oil industry plans another record year for investment

Investment in oil and natural gas production in Norway will exceed last year’s record, driven in particular by new projects. The country’s largest business sector expects to invest 253.8 billion Norwegian kroner (NOK; CZK 541.3 billion) this year. Investment rose by 16.7 percent to NOK 251.2 billion last year. This is according to a report by Norway’s statistics office. Norway is the main supplier of oil and gas to European Union countries.

The new estimate is slightly higher than the one made in November last year, when companies expected to invest NOK 252.6 billion this year. The increase reflects plans for higher investment in oil and gas fields, new projects and onshore facilities, the statistics office said. Companies, however, plan to spend less on exploration.

Vaar Energi, the Norwegian subsidiary of Eni, expects to approve the development of around eight new projects this year.

The statistics office also published an estimate of investment for next year. Companies now expect to invest NOK 197 billion. The forecast is revised quarterly and may rise as new projects are added and cost estimates are updated, Reuters reported.

Norway became Europe’s largest gas supplier in 2022, after Russian gas deliveries fell in connection with the war in Ukraine. Russia had been the largest supplier before the war began. However, environmentalists and other groups strongly oppose oil and gas production in Norway, fearing that carbon dioxide emissions from burning oil and gas will contribute to climate change.

The Norwegian government says oil and gas resources are essential for Europe’s energy security and will still be needed in the coming decades. Oil and gas production is the largest sector of the Norwegian economy.