Investments in electricity supply are falling
Companies’ latest investment estimates for 2021 within oil and gas, manufacturing, mining and quarrying and electricity supply give indications of a slight decline in 2021. Lower total investment is also indicated for the next year 2022. For both years, it is electricity supply that contributes most to the decline.
The investment survey conducted in May within oil and gas, manufacturing, mining and quarrying and electricity supply in 2021 amounted to NOK 243 billion. This is 1.4 per cent lower than the corresponding figure for 2020. The fall can mainly be attributed to a clear decline in investments within electricity supply. Manufacturing investments are roughly unchanged, while investments in oil and gas activities contribute positively with a marginal increase of 0.9 per cent compared with the corresponding figures for 2020. For more details about investments within the oil and gas industry, please see the following article.
Companies’ latest total investment estimates for 2022 indicate a decline of 2.5 per cent compared with the corresponding figures of 2021.The decrease in 2022 is driven by a sharp fall in investment within electricity supply. Investments in oil and gas activities also contribute in a negative direction. Higher investment in manufacturing is helping to curb the overall decline.
The overall estimates for 2021 have been adjusted upwards compared with the previous survey, while the investment estimates for electricity supply have been adjusted downwards. The adjustments in the overall estimates should be seen in connection with an improvement in the corona situation and the higher oil price.
Figure 1. Estimated investments collected in 2nd quarter same year
|Extraction and pipeline transport||Manufacturing, mining and quarrying||Electricity supply, gas and steam|
According to seasonally-adjusted figures, quarterly final investments had following development from the 4th quarter of 2020 to the 1st quarter of 2021:
- Oil and gas: 0.7 %
- Manufacturing : 6.7 %
- Electricity supply: -6,4 %
Figure 2. Final investments per quarter. Seasonally adjusted. 2005=100
|Manufacturing||Electricity supply, gas and steam||Extraction and pipeline transport|