Recently, Norway and the UK managed to overcome certain challenges and increase investments heavily into the energy sector, especially in the North Sea region.
In fact, investments in the oil and gas industry in Norway is expected to amount to $21 billion in 2023 alone, a record level, as the government approved a host of projects in recent years.
With such an impressive pace of growth, the investments in the Norwegian oil and gas industries are expected to pierce the previous 2013 record this year.
It’s a positive turn of events after years of decline, and it’s an important step as Europe gradually seeks a change to cleaner energy sources.
While Norwegian oil production is down 15% down from the 2004 record highs at 4.6 million bpd, the production of Norwegian oil and gas industries are expected to surge once more, potentially hitting fresh record highs by 2025.
The UK gas and oil industry might not recover as fast as Norway though, with total investments in 2023 representing just 75% of 2013 levels, when investments hit a peak of $22.7 billion, however, the UK government continues to approve new and interesting projects in the field.
There are still three new major projects that, if approved, will send investments in 2024 to the highest level since 2013.
It’s worth noting that in 2014, 57 new rigs were built in Norway, and after two years only, the number tumbled to 27 as prices collapsed.
However, rigs are expected to bounce back in Norway to at least 35 rigs, then 36 exploratory rigs nest year.
Source:https://www.economies.com/