The decline in crude prices weighed heavily on Norway, which will reduce in 2016, for the second consecutive year, its oil … The investment expenditure, excluding exploration, will decline by about 10% this year to 135 billion crowns (about $ 15 billion), and will continue to decline to less than 120 billion kroner in 2018.
According to the Norwegian Petroleum Directorate, investments should not start before 2019. Exploration spending is expected to fall by 33%.
“The industry is currently going through a crisis we can not deny it,” said Bente Nyland, Director General of the National Directorate. Norway, which is Europe’s largest oil producer, depends mainly on the sector, which represents over 20% of its gross domestic product … The price of Brent crude plunged by over 70% since mid-2014, and companies such as Statoil reduced their investments to protect their dividends. The crisis has already led to nearly 30,000 job cuts in Norway.