New growth opportunities in the Norwegian oil and gas sector
Since 2015, the Norwegian oil and gas sector has been in a recession, beginning when oil prices dropped from the historically high levels around USD 110 to the low points around USD 30. Investment levels fell in tandem with the oil price as projects were postponed and the current stock of active projects came to completion. The new market conditions forced cost cuts and improvements in operating efficiency, which in turn has made formerly unprofitable projects feasible again. The industry expects investment levels to return to more sustainable levels in coming years while maintaining a historically high activity level on the Norwegian continental shelf (NCS).