Minister of Finance Siv Jensen (Progress Party) presented the proposed National Budget.

The Norwegian government upgrades estimates for future investments on the Norwegian continental shelf and the price of oil.

In its proposed National Budget for 2018, the government predicts slightly higher investments on the NCS, compared to estimates in the revised budget for 2017.

The new estimates are
2017: NOK 152.8 billion (up from 142.5 in revised budget)
2018: NOK 156.2 billion (up from 136.8)
2019: NOK 168.2 billion (up form 147.2)

The government has also adjusted its forecast for the price of oil, from NOK 426 to NOK 439 per barrel in 2018. For Norwegian gas exports, price estimates are lowered from about 1.85 kroner per Sm3 in 2017 to 1.62 kroner in 2018 (fixed at 2018 prices). From 2019, a gas price of NOK 1.89 per Sm3 (fixed at 2018 prices) is estimated.

There is not funding for the establishment of a low-emission center for the development of low-emission technology for the petroleum sector, as suggested in the industry’s Road Map. A separate low-emission program is considered to overlap with existing schemes and to require increased management. Thus, it is believed that low-emission technology is best taken care of within the existing program structure (Petromaks 2 and Demo 2000). However, in the proposed budget, the three most relevant research programs for low-emission technology and solutions for the petroleum sector – Petromaks 2, Demo2000 and EnergiX – are to receive a total of NOK 110 million less than in 2017.

In 2017, NOK 360 million was awarded for further studies of full-scale CCS. For 2018, the proposed grant is NOK 20 million, a reduction of 95 per cent.