Big increase predicted in oil industry investments in Norway in 2019

Source: Xinhua| 2018-11-22 20:18:26|Editor: xuxin
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OSLO, Nov. 22 (Xinhua) -- Norway is expected to experience up to 175 billion kroner (20.5 billion U.S. dollars) worth oil investments next year, which is around 20 billion kroner more than this year, online newspaper E24 reported Thursday.

This figures from Statistics Norway (SSB) showed growth of 6.1 percent compared to the report published in August.

"This is a little better than we thought and only reinforces the impression that the Norwegian oil industry is looking forward to a good recovery ahead," Kjetil Olsen, chief economist in Nordea bank, told E24.

Investment prediction for oil field development is now 74.2 billion kroner, which is 11.4 percent higher than the estimate in the previous quarter, the report said.

The main drivers of investment growth from 2018 to 2019 are oil field development, exploration and shutdown and removal, while lower estimates for fields in operation and pipeline transportation slow down the growth, the report said.

Oil investments fell sharply as oil prices collapsed after 2014, which affected the Norwegian economy.

However, after a few years of decline, investment is expected to recover significantly next year and provide a headwind for the economy. (1 U.S. dollar = 8.52 kroner)