Norway and England Increase Hydrocarbon Production in the North Sea
Both countries are increasing capital investment in hydrocarbon production on the North Sea shelf, and also continue issuing licenses in this region.
The oil and gas industries of Norway and the UK, which were experiencing a decline in investment some time ago, have now experienced financial problems and are increasing capital investment in oil and gas production on North Sea platforms. This is reported in the Rystad Energy review.
Analysts claim that cash injections into the Norwegian oil and gas sector this year will reach a record level and amount to 225 billion crowns. This is an impressive increase in investment, experts say. They recall that hydrocarbon production in Norway has been declining over the past decade, but now there are all the prerequisites that the country will overcome this trend, and Norway’s oil and gas production will again reach records by 2025.
Compared to Norway, the recovery of the UK oil and gas sector looks more modest, but also worthy. In recent years, British investment in hydrocarbons has been declining, but now it is only increasing. Rystad Energy predicts that in 2023 capex in the hydrocarbon sector will reach 75% of the record 2013 level.
In addition, analysts suggest that England could distribute the maximum number of approvals in the oil and gas industry as early as 2024. Climate action is unlikely to stop the UK government, which in the current geopolitical situation is likely to prefer energy security to environmental concerns.
