Norwegian Sector Investment Growing

Norwegian oil companies have raised their investment forecasts for 2022 according to a national statistics office survey released today.

• Investment is now expected at 167.2 billion Norwegian crowns ($17.57 billion) in 2022, up from a forecast of 159.5 billion crowns made in February.
• The oil firms are incentivised to invest higher sums of capital based on the longer term outlook for high energy prices as much of the global market replaces Russian flows as well as tax incentives put in place by the Norwegian government making exploration more favourable.
• “"The upward adjustment for 2022 is driven by higher estimates within the categories field development, onshore activity and exploration and concept studies," the statement said.
• The Norwegian government opened the tax incentives during 2020 when the energy industry was on its knees. The incentives are set to run out to the end of this year which is expected to lead to a flurry of applications by December.