"The petroleum activities are our most important industry"

Petroleum investments in recent years have been at a record-high. Among other things, this is due to major investments in producing fields and a large number of independent development projects. Many of these projects are complete or are currently approaching their final phase. This will contribute to a somewhat lower investment level in the sector in the years to come.

"The petroleum activities are our most important industry and will remain so for decades to come. It is important to maintain a long-term perspective for such a capital-intensive sector, where investment decisions and deliveries are many years apart. Led by the major Sverdrup development, the updated investment forecasts for the sector show that activity on the shelf is robust," says Minister of Petroleum and Energy Tord Lien (Progress Party).

Investments on the continental shelf in 2015 have now been forecast at NOK 147 billion, or approximately 15 per cent lower than in 2014. The forecasts for the years starting from 2016 indicate a certain reduction leading up to 2017, followed by a gradual increase, in part as a result of development of the vast Sverdrup field. The uncertainty in these forecasts increases the further they are projected into the future and is generally greater in periods of major fluctuations in key parameters such as the oil price.

The investment forecasts for the next few years are somewhat lower than previously estimated. Among other things, this is due to changed project plans, but also project postponements as a result of challenges associated with high costs and more stringent capital discipline among the companies.