OSLO, Norway, Nov. 23 (UPI) -- Investment plans for oil and gas developments offshore Norway are on the decline and should remain low even with new projects on tap, government data show.
Statistics Norway reported Wednesday that investments in oil and gas extraction, as well as pipeline transport, for next year is estimated at $17.2 billion, which is 3.6 percent lower than its previous estimate for 2017.
"The decline is mainly due to lower estimates for exploration and shutdown and removal," the government data agency reported. "Exploration wells and removal projects originally planned for 2017 are now postponed."
Norway is among the top suppliers of fossils fuels to the European economy. The National Petroleum Directorate said preliminary production estimates for oil, natural gas liquids and an ultra-light product called condensate was about 30 percent higher than the previous month.
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For oil, the 1.71 million barrels of oil produced per day on average was 4 percent above October 2015 and 10 percent more than the government expected.
Nevertheless, Norway's biggest industry is cutting back on plans as crude oil prices hold steady at levels that are roughly 50 percent less than they were two years ago.
Accounts for the third quarter show the government is running a deficit of around $2.3 billion and this is the second straight quarter this year the government has run in the red. By its account, tax revenues have been cut in half from the $2.1 billion recorded last year.
Weak economic growth in the latter half of 2016 for Norway has replaced an economic standstill, with gains in home-building and exports expected to provide a lift through early 2017. Statistics Norway said some gains were coming from the electricity and manufacturing sector, but parts of the energy sector would remain under pressure through next year.
At least three new projects are planned for next year, though the government said none of those is expected to result in major new investments in 2017 because of year-end start dates.
