The Norwegian Bureau of Statistics (SSB) survey shows that Norwegian oil and gas companies plan to increase their investment amounts in 2023 and 2024. The primary reasons are the increase in development, production, or other business activities in the oil and gas sector and the rise in cost inflation caused by the depreciation of the local currency.
The Norwegian Bureau of Statistics points out that the country's largest commercial sector is now expected to invest 213 billion Norwegian kroner (about 20.03 billion US dollars) in 2023, higher than the 197.8 billion kroner forecasted in May. Oil companies currently plan to invest 207 billion kroner in 2024, compared to the previous estimate of 181.9 billion kroner.
The Norwegian Bureau of Statistics states that the upward revision of the investment plans for 2023 and 2024 is mainly due to higher estimates in specific areas such as oilfield production and development, meaning that investments in these areas are expected to be more than previously anticipated.
This is because oil companies decided to bring forward investments originally planned for later dates to 2023 and 2024, also influenced by cost inflation. The Norwegian Bureau of Statistics explains that due to the depreciation of the krone, the rise in prices appears to be more pronounced when priced in kroner.
