Norwegian oil and gas investments are expected to peak this year, and start declining next year as major projects are completed, a statistics office survey of industry players showed on Thursday.
Norway produces about 2% of global oil, and became Europe's largest supplier of pipeline gas after Russia's invasion of Ukraine in February 2022.
The country's biggest business sector expects to invest a record 274.8 billion Norwegian crowns ($26.98 billion) in 2025, up from a 269.1 billion crowns estimate in May and 251.2 billion last year.
Preliminary estimates for oil and gas investments in 2026 were 229.4 billion crowns, compared to a previous estimate of 206.6 billion crowns in May.
"The decline estimated from 2025 to 2026 is mainly driven by lower investment plans in field development," Statistics Norway said in a statement.
Forecasts typically rise as companies finalise spending plans in the months leading up to a new year.
Several new projects are expected to be approved this and next year by such companies such as Equinor EQNR.OL and Vaar Energi VAR.OL, but overall exploration spending looks set to decline.
The estimated investment growth during the second half of 2025 is largely driven by plans to increase production drilling, the category most sensitive to the energy price changes, it added.
"With lower and more volatile oil prices over the past four months and lower gas prices so far this year, there is a risk that some of the planned drilling campaigns may be postponed," Statistics Norway said.
Oil prices fell to over their lowest in over two months on Wednesday after the International Energy Agency raised its forecast for supply growth this year and lowered its demand forecast.
(Reuters)