In a remarkable revival of their oil and gas industries, Norway and the UK are experiencing surges in investments, production, and exploration, underpinning their vital roles in Europe’s energy transition.
- Norway and the UK are witnessing a resurgence in their oil and gas industries, marked by record investments, production rebounds, and exploration activity.
- Norway’s investments are set to reach unprecedented levels in 2023, while the UK anticipates a surge in project sanctions, potentially marking a decade-high in investments.
- Both countries play pivotal roles in Europe’s energy landscape, supporting the region’s transition and reducing its dependency on Russian hydrocarbons.
Milestones in Investment
Norway and the UK are poised to achieve significant milestones in their oil and gas industries, driven by surging investments, exploration successes, and a commitment to production. These developments play a crucial role in supporting Europe and the world as they navigate the energy transition.
Record Investments in Norway
Investments in Norway’s oil and gas sector are set to hit an all-time high in 2023, reaching approximately NOK 225 billion ($21 billion). A temporary tax regime and key project approvals are propelling the industry towards a historic investment peak, benefitting the oilfield service sector and facilitating the industry’s transition to alternative energy sources.
Norwegian Production Revival
Despite past declines, Norwegian oil and gas production is on the rise, driven by a focus on gas production and new projects. By 2025, production could approach peak levels, contributing to a reduction in Europe’s reliance on Russian hydrocarbons while maintaining a low CO2 footprint.
UK’s Anticipated Projects Surge
In contrast to Norway, the UK’s oil and gas investments have yet to fully recover, but 2024 could witness a resurgence with the potential sanctioning of up to 14 new oil and gas fields. Key projects like Rosebank, Cambo, and Clair Phase 3 hold the potential to usher in a new era of investment in the UK’s energy sector.
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