BAKU, Azerbaijan, September 6. Norway and the UK have successfully overcome recent challenges and are progressing towards significant milestones, thanks to substantial increases in investments, exploration achievements, and production, Rystad Energy, independent energy research and business intelligence company from Norway, said, Trend reports.
According to the company, In Norway, investments in the oil and gas industry are poised to reach a record-high of approximately $21 billion in 2023. This uptick is a result of several crucial projects gaining approval in recent years, driven by the country's temporary tax incentives designed to encourage spending on the Norwegian continental shelf.
Although Norwegian oil and gas production experienced a decline of nearly 15 percent from its peak of nearly 4.6 million barrels of oil equivalent per day (boepd) in 2004, it is on the path to recovery. By 2025, production may approach peak levels once again, primarily due to a heightened focus on gas production and upcoming projects.
In contrast, oil and gas investments in the UK haven't rebounded in the same manner as in Norway. It is anticipated that investments in 2023 will be approximately 75 percent lower than the peak of nearly 18 billion pounds ($22.7 billion) in 2013. However, there is optimism for the future, as numerous developments are in the pipeline. In 2024, the UK may witness the highest number of oil and gas projects sanctioned in a decade, with the potential approval of up to 14 new fields. This marks a significant increase compared to the average of three to five projects sanctioned annually in the UK.
"The three largest projects are Rosebank, Cambo and Clair Phase 3. If these major projects get approved, 2024 could mark the highest sanctioning activity since 2013, with around 9.5 billion pounds ($12 billion) in future investments," Sonya Boodoo, senior upstream analyst at Rystad Energy, said.