(Hegnar.no) operators on the Norwegian shelf is now projected investment in the industries oil and gas via pipelines to be 163.9 billion kroner for 2016. This is 13.3 percent lower than the corresponding estimate for 2015 given in 1. quarter 2015, according to Statistics Norway. the previous census, published in late November indicated an impairment in investment this year of 9.3 percent. If we deduct some of the cost inflation we are talking about a volume drop by 10 to 12 percent. It is also what Norges Bank expects, and it has an estimate of -11 percent in year writes Handelsbanken in its morning report Wednesday. – We believe also that the key rate will be cut to zero by year’s end. And given the new prospects it could happen as early as September, she says in a comment to the lower estimates.
Exploration, field and pipeline weigh
it is particularly the estimates for investments in exploration, field and pipeline which reduced compared with the corresponding figure for 2015.
the estimate for 2016 production and pipeline transport is 4.1 percent lower than the estimate given in the previous quarter. Almost the entire decline from the previous quarter also comes in this measurement in exploration, it added.
The quoted investments for exploration in 2016 is now at 16 billion – the entire 25.5 percent from the previous quarter’s reading.
The further fall in oil prices in recent months has helped to make oil companies more uncertain about their long-term oil price expectations.
the fall also leads to significantly lower cash flow in the oil companies. These conditions are such that both the willingness and ability to make investments fall in oil companies. Since exploration spending in the short term production independent, it is within this category it is easiest to cut in investment. Several oil companies on the Norwegian shelf is also pure exploration companies and can therefore only cut this type of investment, SSB writes in his summary.
investment fell in 2015 also
2015 is the first year of decline in the running investments in oil and gas industry since 2010. From 2010 to 2014, investments increased by 68 per cent. The increase was driven by stable high oil prices throughout this period. The increased activity on the Norwegian continental shelf these years led to strong demand for the supply industry products and services. Investments in oil and gas operations, including pipeline transportation, amounted to 189.6 billion kroner in 2015.
This is NOK 24.7 billion, or 11.5 percent lower than in the record year of 2014. The decrease is particularly within the investment areas field development , fields and exploration, according to Statistics Norway.
investment areas onshore activities and asset retirement obligations, however, show up from the previous year.
Total investments also fall
Total investments in oil and gas, manufacturing, mining and electricity supply in 2015 amounted to 233.3 billion kroner – measured in current value.
the investment level is 9.7 percent lower than the performed investments in 2014. the decrease was mainly due to a sharp fall 11.5 percent in the oil and gas business.
in addition also fell investment in manufacturing and mining in 2015 with respectively 5.5 and 41.8 percent. The power supply, however, had a solid growth of 6.6 percent compared with 2014.De total investments for 2016 are now estimated at 214.4 billion crowns – 9 percent lower than the corresponding figure for 2015. The decrease in 2016 is due to the that it is now indicated a drop of 13.3 percent in oil and gas operations.
The fall in the total investments in 2016 dampened somewhat by increased investments in power generation and industry, SSB writes in his report.
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