Norway's Oil Investments To Fall In 2015, Weigh On Economy

OSLO, June 12 (Reuters) – Norway's oil and gas investments, a key economic growth factor, will fall sharply in 2015, an official survey showed on Thursday, increasing chances that the central bank will keep interest rates low for an extended period.
Investments in the Norwegian continental shelf (NCS) were expected to come in at 182.4 billion crowns ($30.39 billion) in 2015, a 12 percent drop compared with the initial estimate for 2014, published in June last year, and the lowest comparable level since 2012.
The preliminary figures, compiled from oil firms by Statistics Norway, are expected to grow somewhat as companies update their plans later, but the analysts said they were already pointing to lower economic growth.
"This is a significant draw-down on Norwegian growth and suggests a lower interest rate path," Nordea Markets economist Joachim Bernhardsen said of the 2015 investment plans.
The Norwegian crown currency weakened slightly against the euro after the data release, but later recovered.
The global oil industry has cut its plans for capital expenditure in order to preserve cash for dividends and prevent a fresh spiral of cost inflation.
DNB Markets economist Kyrre Aamdal said the survey data clearly indicated that Norway had reached a peak in oil investments, and that the economy would take a hit from a negative development in 2015.
12
View Full Article
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- Fed Will Be One Of The Leading Oil Price Drivers in 2023
- Signs of Progress at Freeport LNG
- Turkey Halts Oil Flows to Mediterranean Port After Quake
- Next Steps Following US Pacific Wind Leasing Round
- US Oilfield Services Firms Money Policy Could Hinder Industry Growth
- Australian Budget Must Focus On New Gas Supply, Industry Says
- Oil Market Is In A State of Flux
- Modi Says India Can Add Oil and Gas While It Chases Green Goal
- Woodside To Pick Development Concept For Timor-Leste Gas Project
- Plenitude Starts Production From Texas Solar Project
- New SPR Bill Passes House
- Biden To Support ConocoPhillips Alaska Oil Project, Defying Greens
- Shell CEO Says World 'Desperately In Need' Of Natural Gas
- Energy Services Sector Will Grow To $1 trillion In 2025
- USA Oil and Gas Employs Almost 1 Million in 2022
- Fate Of $8Bn Alaska Oil Project To Be Resolved In Next 30 Days
- Winter Storm Mara Update
- New Discoveries Make 2022 Highest Value Year In Over A Decade
- Exxon Beats Earnings Record With With Massive $56 Billion
- European Union Debuts First-Ever Carbon Border Tax
- Valaris Employee Reported Missing from Rig
- Gasoline and Diesel Prices Expected to Fall
- Is the USA Shale Boom Over?
- New SPR Bill Passes House
- Higher Oil Prices Have Not Led to More Exploration
- Shell Finds Gas In Pensacola High-Impact Well Off UK
- Iran Oil Gushes Into Global Market
- Will Oil Hit $100 Per Barrel in 2023?
- Eni, Chevron Make Significant Gas Discovery Off Egypt
- What Bad Habits Should Oil and Gas Jobseekers Avoid?