Equinor’s Johan Sverdrup oilfield platforms in the North Sea, Norway.Ints Kalnins/Reuters
Oil and gas firms in Norway have increased their 2022 investment forecasts during the last three months as the industry prepares to take advantage of tax incentives designed to boost activity, a national statistics office (SSB) survey showed on Thursday.
The biggest business sector in Norway now expects to invest 154.4 billion Norwegian crowns ($17.6 billion) next year, up from a forecast of 142.0 billion crowns in August, SSB said.
The forecast for 2021 now stands at 182.3 billion, up from 181.5 billion seen in August, and the numbers thus indicate a decline next year. But the 2022 investments may continue to climb as companies formalize more plans, SSB said.
A change in Norwegian tax incentives, introduced last year, will likely trigger a sharp rise in investment in the sector in 2023, economists have said. SSB has not yet released forecasts for that year however.
“A large number of (investment plans) are expected to be submitted … next year. The vast majority of these will probably be delivered late next year, but some minor development projects are also expected to be submitted earlier,” SSB said.
Norway is western Europe’s largest oil and gas producer with daily output of 4 million barrels of oil equivalent. Investments impact near-term growth of Norway’s economy as infrastructure is being built, as well as the longer-term petroleum output.
Norway’s centre-left government, in office since last month, is determined to continue developing the oil industry, a major source of jobs and export revenue, despite mounting opposition from environmental groups amid concerns over climate change.
In 2020, parliament approved temporary tax incentives to spur oil and gas investments, triggering promises by Equinor, Aker BP, Lundin Energy and others to accelerate field developments.
To qualify for the incentives, projects need to be approved by the end of 2022. This will in turn lead to double-digit percentage growth in investments in 2023, Handelsbanken Capital Markets said.
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TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
