Norway Economy
Norway is among the top 7 exporters of crude oil across the globe. In 2018, the oil and gas industry contributes nearly 62% of Norway exports and 18% of the Norway GDP. The country is the most essential source of natural gas in Western European countries. In 2018, Norwegian gas held nearly 31% of EU gas imports, with nearly all Norwegian exports going to the EU. The major importers of the Norway gas in the EU include UK, Germany, Belgium, and France. As a result, Norway government is significantly encouraging oil and gas operations. For instance, on 14th January 2020, the Norwegian government awarded a total of 69 offshore blocks to the 28 oil and gas companies.
This is aimed to discover petroleum in mature fields of its continental shelf. With this initiative, the government is intended to expand the oil and gas sector in the upcoming period. However, the COVID-19 outbreak has been affecting the oil and gas industry. Most of the air traveling has banned or reduced due to the spread of the coronavirus as well as foreign trade is reduced which in turn, is affecting maritime transportation. This results in low demand for oil in the transportation sector and therefore, the price of oil has been reduced significantly. The OMR report titled “Impact of COVID-19 on Norway Economy” has provided the pre and post COVID-19 revenues along with industry verticals analysis. Multiple authentic sources are used to properly estimate the effect of the outbreak on the Norway economy and values are derived accordingly.
Reduction in investment for oil and gas exploration activity
Equinor ASA, the major oil and gas company in Norway, declared that it plans to reduce investment in oil and gas exploration activities. On 25th March 2020, Equinor presented an updated view for 2020 which includes nearly $3 billion action plan to reinforce the financial strength of the company due to the COVID-19 epidemic and low prices of the commodity. The prime aspects of the action plan for 2020 include lowering exploration activity from nearly $1.4 billion to nearly $1 billion, reduction in operating costs by nearly $700 million compared to original estimates. Reduction of organic capex from $10-11 billion to nearly $8.5 billion, a decline of nearly 20%. This, in turn, will affect the oil and gas output in Norway.
OMR Global Recently Published Report on: https://www.omrglobal.com/industry-reports/impact-of-covid-19-on-norway-economy
The Report Covers
- Comprehensive research methodology of the pre and post-COVID-19 impact on Norway economy.
- This report also includes a detailed and extensive market overview with key analyst insights.
- An exhaustive analysis of macro and micro factors influencing the market guided by key recommendations.
- Analysis of regional regulations and other government policies Impact the Norway economy.
- Insights about market determinants that are stimulating the Norway economy.
- Detailed and extensive market segments with regional distribution of forecasted revenues.
- Extensive profiles and recent developments of market players.
Verticals Affected Most
- Aviation
- Energy
- Healthcare
- Automotive
- Others (IT and Telecom)
To Learn More About this Report Request a Free Sample Copy @ https://www.omrglobal.com/request-sample/impact-of-covid-19-on-norway-economy
