Sharp drop in oil investments – NRK

The already sharp drop in oil investment are even stronger than expected, it according to Statistics Norway (SSB) today.

The investments for 2016 in the extraction of oil and gas and pipeline transportation are estimated at 163.5 billion, which is 1.5 percent lower than the previous measurement.

down 25 billion on a year

the reduction is primarily in the field development and asset retirement obligations.

the reduction of field development have partly because fields have come on stream and therefore transferred from the category field development to the category fields in the study.

last year at the same time assumed SSB oil investment in 2015 would be 198 billion. Investment estimate has thus decreased 25 billion a year.

Could be worse

It is indicated decline in all investment areas when comparing current estimates for 2016 with the corresponding estimate for 2015 given in 3 . quarter 2015.

the main contributors to the decline coming from the categories field development, fields and exploration.

They performed investments in Q1 and Q2 amounted to respectively 38.3 and 41 , 8 billion, for a total of 80 billion in the first half.

for the SSB shall take on current estimates for the entire 2016 oil companies must invest 83.5 billion in the second half of 2016.

Continuing down

the oil companies believe the investments will be even less in 2017 compared to this year. 150.5 billion crowns is the new estimate of SSB. This is 1.8 per cent lower than the estimate that was given three months ago. Even more dramatic is the figure compared with what expectations they had for this year’s investments compared with last year.

The estimate for 2017 represents a drop of 18.6 percent compared with the corresponding figures for 2016 given in Q3 2015.