Advertisement

Oil

Norway oil investment tanks on weak oil price

AFP/The Local
AFP/The Local - [email protected]
Norway oil investment tanks on weak oil price
Photo: Jan-Morten Bjørnbakk / NTB scanpix

Norway's all-important oil sector will invest far less than previously expected next year as the weak oil price makes the search for new reserves less profitable, official data showed Tuesday.

Advertisement

Norwegian oil companies are now expected to spend 171 billion kroner (18.6 billion euros, $19.8 billion) on domestic investment, 10 billion less than estimated in August, the country's statistics bureau SSB said.
 
The fall was seen mostly in prospecting for new resources, it said.
 
Investment estimates for this year remained unchanged at 192.7 billion kroner, implying an expected 11.3 percent drop in 2016.
 
Oil is Norway's key economic driver, and the Scandinavian kingdom's central bank has already cut leading interest rates in half over the past year to a current 0.75 percent to help the country's growth prospects.
 
Further cuts are in the pipeline, it has hinted, and analysts say the next easing could come as early as December.

More

Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.

Please log in to leave a comment.

See Also