Norwegian Oil and Gas Investments Reach Record High

Norway's oil and gas investments are projected to reach a record-breaking $23.99 billion (NOK 257 billion) in 2024, marking a 4.1% increase from earlier estimates and surpassing the previous high of 224 billion crowns set in 2014. This surge is primarily attributed to ongoing field developments, rising inflation, and significantly higher costs reported for existing projects. Preliminary estimates for 2025 suggest investments will remain robust at around NOK 240 billion, an 11% increase from prior forecasts. Notably, additional investments will likely not significantly expand future production capacity, as no new field developments have been sanctioned since May. The increase in costs is also influenced by the weakening of the Norwegian krone against major currencies. Environmental concerns persist as Norway continues its oil and gas production efforts despite backing the Paris climate accords.