Oil and gas activities, investments, Q4 2008

Probably, the estimates in this survey are mainly made before the financial crisis` impact on the oil market had materialized. There is reason to believe that the oil companies` flexibility regarding investments next year are bound by already signed contracts with subcontractors.

Estimates for 2009

Total investments in oil and gas activities for 2009, including pipeline transportation, are estimated at NOK 145.5 billion. The estimate is NOK 18.7 billion higher than the corresponding estimate for 2008.

Investments for field development and fields on stream are now estimated at NOK 108.4 billion.

This is NOK 12.8 billion higher than the estimate given in the previous quarter.

Investments for exploration activity in 2009 are estimated at NOK 29.1 billion. The estimate is NOK 0.6 billion lower than the corresponding estimate for 2008, given in the 4th quarter of 2007.

Onshore activities and pipeline transportation are estimated at NOK 7.1 and 0.9 billion respectively.

Estimates for 2008

Total investments in oil and gas extraction and pipeline transport for 2008 are now estimated at NOK 127.4 billion. This is NOK 1.4 billion lower than the estimate conducted in the survey last quarter, but an increase of NOK 14.9 billion compared with the corresponding estimate given for 2007. The increase for 2008 is due to higher investments in exploration, field development and fields on stream, while the estimates indicate a decrease in onshore activity and pipeline transportation.

Investments in field development and fields on stream are now estimated at NOK 95.4 billion. This is a NOK 1.5 billion decrease compared with estimates given in the previous quarter.

Exploration activities in 2008 are now estimated at NOK 25 billion. Compared with the corresponding estimate given for 2007, the estimate for 2008 is 5.8 billion higher.

Onshore activity and pipeline transportation are estimated at NOK 5.1 and 1.9 billion respectively.

Tables:

• Table 1 Accrued and estimated investment costs. Extraction of crude petroleum and natural gas and transport via pipelines. 2004-2009. NOK million
• Table 2 Accrued investment costs for oil and gas exploration, by cost category. Q3 2006-Q3 2008. NOK million
• Table 3 Accrued investment costs for field development and fields on stream. Q3 2006-Q3 2008. NOK million
• Table 4 Estimated and accrued investment costs for oil and gas extraction and pipeline transport. 1985-2009