Norway's 2015 oil and gas investment to fall more than expected

Norway's oil and gas investments are seen falling 13.9% Y/Y in 2015, more than earlier forecasts, Reuters reports; companies are now expected to invest 185B Norwegian crowns ($29.8B) in the sector, vs. 215B crowns in 2014.

Norway has been one of the best-performing economies through Europe's slowdown, but it has struggled in recent quarters due to weak exports and consumption; the country's fortunes could sour further as its energy firms, which account for nearly 25% of the economy, cancel or delay some of their biggest projects.

Related: RDS.A, RDS.B, STO.

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Comments (3)
    , contributor
    Comments (192) | Send Message
    Can anyone explain why Norway would "cancel or delay some of their biggest projects." while Russian is tightening the noose on Europe?
    Or does "weak consumption" mean that the noose is not as tight as some might think?
    3 Sep 2014, 11:37 AM Reply Like
  • King Rat
    , contributor
    Comments (1747) | Send Message
    Very good question. Your second question/answer may be it. Putin may be playing with millions of Ukrainian lives. He may enjoy putting the fear of Russia in Europe for the first time in 50 years. He may be doing a lot of things non-Russians don't like, but he is going to back off on the noose before the western leaders straightens their backs and stand up, because if he waits too long, he loses face.


    Norway may be waiting to sign projects at higher oil prices. As with the thinking at RDS, the Norwegian oil fund managers process thousands of political, economic, and environmental scenarios on a constant basis to assess risk. Their conclusion here may be wrong but they may see depressed oil prices in the near future.
    3 Sep 2014, 11:58 AM Reply Like
  • Veritas1010
    , contributor
    Comments (3291) | Send Message
    Norway's reserves upon its continental shelf are proving more barren than expected in the haste of there decline. STO, always uber conservative as a Scandinavian firm is answerable to Oslo's agenda of keeping Norway flush with cash and a high standard of living. Politically STO is answerable therefore to the caprices and whims of Norway's ruling coalition. It has had no drought of bad news from dry Arctic holes to poor second drilled on once plentiful wells.


    I've been a long time STO believer, but, I must admit I am watching closely, and have I believe legitimate basis for concern is present.
    3 Sep 2014, 06:54 PM Reply Like
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