Norway poised for record investment in oil and gas production

Norwegian investment in oil and natural gas production, including pipeline transport, will reach a record high this year and remain strong in 2025, driven by a number of new projects and cost inflation. This was shown by a Tuesday survey by Statistics Norway (SSB).

Oil and natural gas production and related activities are Norway’s largest business sector. Statistics Norway tracks seven categories within the sector: extraction and pipeline transport, exploration and concept studies, field development, currently producing fields, onshore activities and decommissioning.

Across these seven subsectors, investment is expected to total 23.58 billion USD in 2024, which would surpass the previous record of 21.34 billion USD set in 2014. Reuters reports.

Investment is increasing across all the main categories related to oil and natural gas production, but the largest share goes to field development and pipeline transport.

2025

In 2025, the office expects investment to fall year on year to around 20.48 billion dollars. However, the estimate has been raised compared with the initial forecast from February of that year. This usually happens because companies refine their spending plans in the months before the new financial year.

“The upward revision for 2025 is due to higher estimates for field development and exploration,” SSB said in a statement.

Estimates point to even stronger growth in onshore activities and decommissioning, but since activity in these categories is initially lower, they contribute less to boosting growth.

The trend may slow

SSB noted that although the initial estimate for 2025 may point to another year of strong investment growth, the final figures could show a slower trend once cost inflation levels off and the currency stabilises.

“In addition, only a few new projects are expected to come on stream next year, contributing to only a relatively modest increase in the estimate for 2025,” the office said.