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Norwegian Oil Resurrect Investment Strategies

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Oil/gas investment in Norway will rise more this year and decrease less in 2021 than predicted some time ago, an industry survey by the statistics office (SSB) revealed on Thursday.

Petroleum businesses, including Equinor, have actually revived a few tasks after the Norwegian parliament in June granted tax incentives to spur investment and protect jobs after a collision in oil prices sparked by the commencement of the pandemic that is COVID-19.

Investments in the country’s main sector that is economic now projected at 184.6 billion Norwegian crowns ($20.7 billion), up from the 180.3 billion crowns forecast in May, SSB said, or more from 177.6 billion crowns in 2019.

Next year, however, investment is anticipated to decrease to 148.6 billion crowns, compared using the view that is previous of billion crowns, SSB added.

Analysts at Handelsbanken said the expected drop year that is next dampen Norway’s general economic recovery, while DNB Markets said it reflected a shortage of big oilfield projects to develop in the years ahead.

The figures for the year that is next still be revised up, with oil businesses planning a few smaller developments, including Equinor’s Breidablikk and Aker BP’s Frosk, SSB stated.

Tasks approved by the last end of 2022 qualify for tax breaks that shield a greater part of income.

Norwegian Oil and Gas, an industry association that lobbied for the income tax cuts, said the updated forecasts were proof that the package was having a impact that is positive.

But while oil organizations will invest more overall on field development, drilling for new reserves appeared to be declining, SSB said. Oil/gas investment in Norway will rise more this year and decrease less.

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Michelle D. Madsen

Michelle D. Madsen graduated from the University of Westminster and has been deeply involved in the world of finance ever since. She has worked as a Broadcast Journalist hosting various news shows and informative webcasts about the financial markets. Since 2004 she has also been writing for Metanews daily, her attention to detail, and her in-depth knowledge of the financial markets have led her to cover Foreign Exchange and commodities. The world of finance has changed in the last few years with the introduction and rising popularity of cryptocurrencies. She has in no means been left behind, adding this to her bank of intellect and is now also an expert in cryptocurrencies. For the last ten years, Ms. Madsen has been engaged in the financial market. She has notedly written a great number of incredibly informative reviews for the crypto exchange and forex brokers. Her wealth of knowledge has enabled her to become a leading expert in the field. She continues to inform the public writing up-to-date, thorough reviews for the readers of Metanews as she has for the last decade.
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