Decline in oil investment in Norway decelerating, likely to fall 5.5 pct in 2017

The decline in oil investment in Norway is decelerating. This year appears to be slightly stronger than anticipated. The second quarter oil investment survey showed that oil investment this year would be NOK 154.4 billion. This suggests a drop in oil investment by 5.5 percent in 2017, as compared with Norges Bank’s projection of 9.8 percent.

Meanwhile, the 2018 figure was just NOK 144 billion. Given that there is no revision to plans, it suggests a drop in investment of close to 7 percent next year, as compared with the central bank’s projection of 3.4 percent rise. But Statistics Norway cites several projects not covered by the survey yet; however, it will most likely generate investment activity in 2018. This suggests that the drop would be much smaller, noted Nordea Bank in a research report.

The central bank is expected to revise up its projection for this year; however, it is likely to lower it for next year. However, the downward revision for 2018 would not be as strong as the survey shows. In all, the revision to its picture should be fairly neutral, stated Nordea Bank.