Large revenues from the petroleum industry in 2024
Press release | Date: 07/10/2024 | Ministry of Energy
The state's net cash flow from petroleum activities is estimated to be 680 billion NOK in 2024. These revenues go into the Norwegian Government Pension Fund Global and are expected to provide approximately 20 billion NOK into future budgets.
‘The petroleum resources belong to all of us, and the revenues from these activities play a crucial role in financing the welfare state. Through wise and responsible management, we ensure that these values benefit both current and future generations’, said Minister of Energy Terje Aasland.
The expected revenues from the petroleum industry in 2024 are lower than in 2023, when the state’s net cash flow was 978 billion NOK. The decline is mainly because of lower estimates for the gas prices compared to last year. In line with the budgetary rule will the expected petroleum revenues for 2024 provide the basis for approximately 20 billion NOK into future budgets.
Oil and gas production is expected to remain relatively stable towards 2030. In the national budget, the government expects that total Norwegian petroleum production in 2024 to be 239 million standard cubic meters (Sm3) of oil equivalents, while the production is expected to be 243 million Sm3 in 2025. The future production provides the basis for continued high government revenue. In the national budget, the estimate for net cash flow to the state for 2025 is 643 billion NOK.
‘Production from the Norwegian continental shelf contributes large amounts of energy and is significant for the energy supply to Europe. We will continue to develop the petroleum industry and remain a stable and long-term supplier of energy to Europe’, said Aasland.
Large investments result in a high level of activity in Norway
The investments in the petroleum industry are estimated at 254 billion NOK in 2024. This includes both new field developments and investments in producing fields. Many ongoing development projects also contribute to high-capacity utilization in the service and supply industry, and high investments are expected over the next two years.
‘Developments on the Norwegian continental shelf contributes to employment throughout the country and make it possible to maintain production at a high level up to 2030. It is important that the industry develops all profitable resources in its portfolio and seeks to identify and develop more profitable discoveries. The service and supply industry needs new assignments over the next two years to maintain a high level of activity’, said Aasland.