Norway sees sharp fall in oil investments this year and next: Q3 Investment Survey

The third quarter oil investment survey in Norway indicates a slightly strong decline in oil investment in 2016 and 2017 as compared with Norges Bank’s projection. Investment plans for both this year and next were downwardly revised in the third quarter oil investment survey as compared with the second quarter survey.

According to the latest survey, oil investment will be declining 16 percent in 2016 and 8 percent in 2017. The Norwegian central bank projection suggested that the survey’s figure for next year should be upwardly revised. The central bank projects a decline in investment by 14 percent in 2016 and 5 percent in 2017.

The survey is softer than anticipated. The lowering of forecast in the third quarter is unusual. Nearly the total fall from the previous survey is however because of lower estimates in shutdown and removal.

However, it is still quite early and new 2017 projects might be added, signifying that the decline would be lower than 8 percent in 2017, said Nordea Bank in a research report.

“We see the probability for a revision down, as we saw in Q4 2015 and Q1 2016 for 2016, as less likely. Also remember that the main picture still holds. Oil investment will be a much smaller drag on the economy looking ahead”, added Nordea Bank.