Companies are expected to spend a record-high level of investment on oil and gas extraction and pipeline transportation in 2024 offshore Norway, thanks to higher expected spending on exploration and field developments, Statistics Norway said on Tuesday.
Investments in oil and gas extraction and pipeline transportation for 2024 are now estimated at $23.6 billion (247 billion Norwegian crowns), "which is historically the highest nominal estimate given since this statistic was created," Norway's statistics office said, commenting on a second-quarter survey of investment estimates.
The new estimate of a record-high investment is 1.3% higher than in the first-quarter survey from February, which showed expectations of $23.3 billion (244 billion crowns) in 2024 investments.
For 2025, investment will also be strong although not as strong as this year, due to fewer new developments in the next year, Statistics Norway said.
Total investments in oil and gas activity, including pipeline transportation, are estimated at $20.6 billion (216 billion crowns) in 2025, which is 5.2% higher than estimated in the previous quarter.
Oil and gas companies plan to boost exploration activity and spending offshore Norway this year as Western Europe's top oil and gas producer looks to maintain production and raise exports to the rest of Europe.
Currently, most exploration efforts are focused on areas around existing infrastructure so discoveries can be tied back quickly and create value while the fields are still in operation, the Norwegian Offshore Directorate said in its annual report earlier this year.
While this is important for maintaining production levels in the near and medium term, the directorate said it "would like to see companies exploring actively in more frontier areas."
The robust exploration and production activity of the past year is set to continue into 2024, it noted in the report.
This year, exploration activity will pick up, with 40 to 50 exploration wells planned by operators, up from 34 exploration wells spudded last year, according to the authority.
By Michael Kern for Oilprice.com
Michael Kern is a newswriter and editor at Safehaven.com and Oilprice.com, More