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Renewable Jump and Oil and Gas Decline in 2020

The Norwegian-based renewable energy industry has for the first time exceeded NOK 50 billion in total turnover, while the oil and gas supplier industry turnover declines according to new reports.

A new record was thus set with NOK 51.9 billion in turnover in 2020 or a growth of 15 percent up from NOK 45.1 billion in 2019 for the Norwegian-based renewable energy industry. Meanwhile, the corona pandemic has had its impact on the Norwegian oil and gas supplier industry causing a decline in turnover of 7% in 2020.

This is stated in two reports about Norway's energy industries. The report on the renewable energy industry has been commissioned by Eksportfinansiering Norge (Eksfin), NORWEP and the Norwegian Ministry of Petroleum and Energy and has been prepared by Multiconsult. The report on the supplier industry for oil and gas has been prepared by Rystad Energy, on behalf of the Ministry of Petroleum and Energy.

A Strong Comeback

The oil and gas market has however bounced back and gradually recovered from the marked collapse in March 2020 when the pandemic hit hard, and is expected to grow by 5% annually from 2021 to 2025, according to the Rystad report.

Read the report about the renewable energy industry from Multiconsult (in Norwegian)
Read the report about the global offshore market from Rystad (in Norwegian)

Dramatic Losses of Export and Reveneue

– We know that revenues from oil and gas will fall in the next decade, so it is great to see that the supplier industry has remained strong and is recovering from the pandemic, says Owe Hagesæther, CEO of GCE Ocean Technology. He explains – The oil and gas supplier industry is progressively delivering and transferring know-how and technology to the renewable energy sector, thus being crucial for strengthening Norway’s value chain- and exports within the renewable industries.

Key findings in DNV’s newly released report Energy Transition Norway 2021 states that Norway is not likely to meet its 2030 climate targets, and that oil and gas exports are set for a continuous decline, resulting in dramatic losses of export and revenue.

Norway has a solid platform to grow green export-oriented industries, but needs supporting policies, according to the report.

Read E24 article with Owe Hagesæther: Active business policies must be followed up with clear content: We must dare to prioritize industries with export potential (in Norwegian).

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Kjersti Boge Christensen

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Kjersti Boge Christensen