Norway Faces 20% Drop in Oil Investment

Norway Faces 20% Drop in Oil InvestmentNorway Faces 20% Drop in Oil Investment

Western Europe’s biggest oil and gas producer will probably see investments slump by one-fifth next year compared with 2014, when crude hit a peak, as the industry adjusts to considerably lower prices.

Investments by oil and gas companies operating in Norway will fall to 171 billion kroner ($20 billion) next year, 5.6% under a previous estimate, according to a quarterly survey by Statistics Norway, Bloomberg reported.

The estimate for this year was little changed at 192.8 billion kroner, but far below the 214.3 billion kroner spent in 2014.

Norway’s oil companies reduced their exploration-spending forecast for next year by 35% from the previous quarter’s estimate, and foresee a “sharp decline” in the number of offshore wells, Statistics Norway said.