Record high oil investments in 1997

Total oil investments last year amounted to a record NOK 62.5 billion, up NOK 14.6 billion from 1996. Investments in field development accounted for about NOK 10 billion of the increase, according to the investment survey conducted in the first quarter of this year.

Accrued investments in field development came to a grand total of NOK 35.3 billion in 1997, a new record for these investments. The level is the same as in the record year of 1993. The fields making the biggest contribution to field development investments from 1996 to 1997 were Åsgard, Jotun, Visund and Troll Oil & Gas Province.

New record investments in exploration and fields in operation

The first quarter survey also shows that exploration investments reached a new peak year in 1997, with NOK 8.3 billion, i.e. NOK 0.2 billion higher than the old record from 1991. Compared to 1996, investments increased by NOK 2.8 billion. The reason why investments were not even higher is because companies had to delay several drilling programmes until this year due to the tight rig market. Accrued investments last year for fields in operation amounted to NOK 9.2 billion, a modest increase from the year before.

Combined investments in the pipeline transport sector amounted to NOK 8.2 billion last year, an increase of NOK 2.2 billion compared to 1996. The main reason for the increase in pipeline investments from 1996 to 1997 was the huge investments in the Europipe II and Åsgard transport system last year. Investment in terminals, offices and onshore bases amounted last year to NOK 1.5 billion, and is the only investment category to show a decline compared to the year before. The decrease was NOK 0.6 billion.

Optimistic view for 1998

Estimated overall oil investments for 1998 reported to the first quarter survey amounted to NOK 71 billion. This is NOK 16.1 billion higher than the estimate obtained for the 1997 first quarter survey and fully NOK 10.8 billion higher than the estimate for the record year of 1993 obtained in first quarter 1993. The increase from 1997 to 1998 is because of higher anticipated investments in field development, exploration, fields in operation and land-based activities. Since the first quarter 1997 survey was carried out, however, the investment estimate for 1997 has been revised upwards by a substantial amount in the wake of the decision to develop Jotun, Oseberg SOuth and Troll Oil & Gas Province. It is uncertain whether the 1998 estimate will show a similar trend in subsequent surveys. The new estimate for combined oil investments for 1998 is NOK 8.5 billion higher than the final figure for 1997.

New Statistics

Investment statistics. Oil activity, 1st quarter 1998.
Statistics are published every quarter in the Weekly Bulletin of Statistics and Official Statistics of Norway (NOS) Oil and Gas Activity. For more information, contact: Jørn Bugge, tel. +47 21 09 47 67, e-mail: jbu@ssb.no, or Lise Dalen, tel. +47 21 09 47 68, e-mail: lid@ssb.no.

Weekly Bulletin issue no. 10, 1998