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Norway oil investment to rise before sliding

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Staff Writer | January 8, 2019
Oil and gas investment in Norway is expected to grow for a second year in a row in 2019 but will fall back between 2020 and 2023, an industry lobby group said.
Norway oil
Europe   Norway has seen a recovery in oil industry activity
Norway has seen a recovery in oil industry activity thanks to higher crude prices, after a slump in 2014-2016.

Investment in Norway's oil industry is estimated to rise by 16 percent year-on-year to 184.5 billion crowns ($21.5 billion), the Norwegian Oil and Gas Association (NOG) said. It previously expected 2019 investment of 153 billion crowns.

"It is good news that activity is so high on the Norwegian continental shelf. We believe this is because of the significant restructuring the industry has done in recent years, which has increased competitiveness," the lobby said in a statement.

But it said investment would start to fall after 2019 to 182.5 billion crowns in 2020, 168 billion crowns in 2021, 156.5 billions crowns in 2022 and 141.5 billion crowns in 2023.

The group said its forecast for investment was based on a survey of companies that was completed before October when oil was trading at above $70 a barrel. Since then prices had dropped and were trading at $58 a barrel on Monday.