Norway bets on long-term demand and increases oil production — Bloomberg

Norway is actively investing in developing new offshore fields, increasing oil production in an already oversupplied market. The country plans to spend over $15 billion on offshore oil projects before the end of the decade. In particular, the Johan Sverdrup and Johan Castberg fields currently produce about one million barrels of oil per day. As Bloomberg notes, this complicates OPEC+'s efforts to regulate prices through supply control.

The Norwegian government remains confident about stable oil demand, despite International Energy Agency (IEA) forecasts predicting reduced consumption by 2029. Officials emphasize that Norway remains a strategic supplier for Europe, especially amid the gradual phase-out of Russian fuel and concurrent plans to achieve net-zero emissions by mid-century.

Under these conditions, oil companies continue launching new projects. These moves demonstrate producers' confidence in long-term hydrocarbon demand, despite global plans of transition to green energy.