The Revised National Budget
High production generates large revenues from the petroleum industry
Press release | Date: 19/05/2025 | Ministry of Energy
The world needs large amounts of oil and gas every day. In recent years, revenues from the petroleum sector have been at historically high levels, and the government expects these revenues to remain high in 2025. In the revised national budget, the government estimates that the state's net cash flow from the sector this year will be 698 billion NOK.
‘The signicant revenues from the petroleum sector contribute to financing the welfare state. The revenues are expected to provide about 21 billion NOK in increased budget flexibility for every future budget. This way, the large values created in the industry benefit the entire Norwegian society, both now and in the future’, says Minister of Energy Terje Aasland.
The total petroleum production from the Norwegian continental shelf reached approximately 241 million standard cubic meters (Sm³) of oil equivalents in 2024. This is the highest level since 2009. In 2024, gas production was at its highest level ever, with a production of around 124 billion Sm³.
In 2025, production is expected to be around 3 percent lower than in 2024. Due to high development activity on the shelf, oil and gas production is expected to remain stable in the years following 2025.
‘Norwegian petroleum production is an important contributor to Europe’s energy security. In 2024, we had record-high gas production, which is particularly important for ensuring Europe’s energy supply. We will continue to develop the sector so that we can deliver stable energy to our neighbors while ensuring jobs, value creation, and state revenues from the industry’, says Aasland.
Still high activity level on the Norwegian shelf
There is currently a high level of investment in the petroleum industry on the continental shelf. Ongoing development projects contribute to a high activity level also in 2025. Investments in the petroleum industry are estimated to reach 264 billion Norwegian kroner in 2025.
‘The petroleum industry generates significant ripple effects on the mainland. Around 200,000 people are directly and indirectly employed in the sector. Developments on the continental shelf provide jobs for industrial companies across the country. By further developing the industry, we will also facilitate large ripple effects in the future’, says Aasland.
As projects are completed, investments are expected to decrease in the following years. The reduction is expected to be especially significant for new platforms and production ships, which are particularly important for parts of the shipyard industry.
‘The petroleum industry plays a central role in the Norwegian economy. The government is facilitating continued exploration, improved recovery, and the development of discoveries through stable and predictable framework conditions. For us to succeed, it is important that companies utilize all the business opportunities in our oil and gas resources in the future’, says Aasland.