Norway and the UK have overcome recent challenges and are on course to achieve significant milestones due to notable increases in investments, exploration success and production. Solid oil and gas production from the region is also providing indispensable resources to Europe and the rest of the world navigating through the energy transition.
Investments in Norway's oil and gas industry are expected to reach a record-high of about US$21 billion in 2023. It comes as several key projects have been approved in recent years, driven by the country’s temporary tax regime, which was introduced to incentivise spending on the Norwegian continental shelf.
“With an impressive growth rate this year, the total investments in the Norwegian oil and gas industry are projected to surpass the record set in 2013, when total investments reached about US$19 billion. The investments in 2023 are expected to reach a new all-time high, and this significant increase in investment would mark a new milestone in the oil and gas sector in Norway,” affirms Emil Varre Sandoy, Upstream Vice President at Rystad Energy.
This increase in investment is a positive development after several lean years in the industry and will be particularly welcomed by the oilfield service sector. This investment in the sector is essential for maintaining a strong service industry while it undergoes a gradual transition towards alternative energy sources.
Despite a decline of almost 15%, from a peak of nearly 4.6 million boe/d in 2004, Norwegian oil and gas production is set to rise again. By 2025, production might rise back towards peak levels as a result of increased focus on gas production and new projects in the pipeline. These volumes will be produced with one of the world’s lowest CO2 footprints and reduce Europe’s dependency on Russian hydrocarbons.
Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/05092023/north-sea-oil-and-gas-industry-booms-with-increasing-production-and-investments/
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