Sharp fall in oil investments – Fædrelandsvennen

Sharp fall in oil investments – Fædrelandsvennen

The sharp fall in oil prices will have major consequences for investment on the Norwegian shelf.

At the annual presentation of the shelf year, let Director General Bente Nyland present new forecasts for investments and operating (not exploration).

For the period 2015-2019 cuts NPD 175 billion in forecasts compared to last year’s presentation. This is a decline of 20 percent.

investment is projected to fall around 15 percent from 2014 to 2015 and by a further eight percent until 2017, then flatten and increase moderately from 2018, explains oljedirketoratet in a message .

New fields will counteract

Nyland did not hide that the oil price fall is dramatic, but stressed nevertheless that it is important to remember that Norwegian oil production will continue to be important.

– New fields will help to counteract the fall in investment. Operating costs will increase as new fields come into place. Investments, exploration and operation will be around 250 billion. Kroner. year throughout the projection period, she explained.

It is especially the giant Johan Sverdrup field that will stand for much of this.

Exploration hardest hit

There are areas of exploration that Nyland think the biggest cuts come. NPD believes investments here will fall by 15 percent from 2014 to 2015, then 20 percent on 2016.

– Exploration costs fall more powerful than general investment. It is here that affects oil prices fall hardest.

She also emphasizes that certain well profitability may lapse if the oil price slump continues.

The forecasts that were presented show that the directorate expects stable oil production in about ten years, before they see a decrease in the quantity of oil and gas.

– It is difficult to predict the distant future, but we believe the Norwegian shelf is viable for a long time, explained Nyland.

She believes the drop in investment now may lead to some production being pushed forward in time.

Reduced oil exports resulted in lower trade surplus

Lower oil exports contributed last year to the trade surplus fell 11 percent to 337.1 billion dollars. Imports of foreign goods reached record levels, NTB.

• For the year as a whole amounted merchandise exports 897.8 billion dollars, a decrease of 0.9 percent compared to 2013.
• Mainland exports went up 6.5 percent and muted thus fall in oil and gas prices.
• Imports rose last year to a record high 560.7 billion dollars.

The trade surplus thus ending at 337.1 billion dollars, a decline of 11 percent from 2013, according to preliminary figures from Statistics Norway.

Last year last month helped lower oil exports greatly to the trade surplus fell 7 billion from the same month in 2013.

The value of imported goods ended in December last year of 46.6 billion. Exports accounted for 76.7 billion kroner. The decline in the trade surplus of 7 billion from the same month last year due to particularly lower oil exports, while increased mainland exports pulled in the opposite direction. (© NTB)

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