Norwegian oil investment estimate for 2019 adjusted downward

Source: press release, 21 February 2019

Investments – extraction and pipeline transport; estimates given on different points in time
Investments – extraction and pipeline transport; estimates given on different points in time (source: Investments in oil and gas, manufacturing, mining and electrical supply, Statistics Norway)

Statistics Norway – The Central Bureau of Statistics (SSB) – reports that the estimated total investment in Norwegian oil and gas activity in 2019, including pipeline transportation, is NOK 172.7 billion, which is 1.4% lower than estimated in the previous quarter.

In the statistics for oil and gas, manufacturing, mining and quarrying and electricity supply, the investment estimates for 2020 are being released a quarter earlier than usual. The investment for 2020 is estimated at NOK 158.5 billion. This is 9% higher than the corresponding figure for 2019 given in the first quarter of 2018.

Statistics Norway urges caution in the interpretation of the strong growth indicated for 2019. Because the estimate given for 2020 is now more complete than the estimate given for 2019 in the first quarter of 2018, the growth indicated for 2020 is artificially high. The growth indicated from 2019 to 2020 is mainly due to the much higher exploration estimate. In addition, the estimates for fields on stream and shutdown and removal show an increase in 2020, while the estimate for the category field development shows a decrease from 2019 to 2020.

Several plans for development and operation (PDOs) are expected to be submitted to the government in both 2019 and 2020. If the schedules for these plans are realised, the accumulated investment costs in 2020 from these projects will increase the investment in field development compared to the present estimate.