Substantial Growth in Domestic and International Activities of the Norwegian Energy Industries
Oslo, 18.12.2024
In a new study for the Norwegian Ministry of Energy, Multiconsult, Vista Analyse, and the Center for Innovation Research at the University of Stavanger have mapped the Norwegian energy industries. The project is part of a framework agreement for annual mappings of the energy sector. The report may be downloaded here (English summary). The ministry's press release can be found here (only in Norwegian).
The study covers both domestic and international activities, with a particular focus on supplier industries within petroleum, renewable energy, hydrogen, and CCS, as well as related fields. The mapping provides detailed overviews of the industries' value creation, employment, exports, and international turnover.
"In this project, we have had the pleasure of working with the energy sector, international economics, economic statistics, and trend mapping. We thank the ministry and our partners for a productive collaboration on this year's project. We hope the report will be useful and interesting for stakeholders both within and outside the industry," says Rasmus Bøgh Holmen, who led Vista Analyse's contributions to the project.
The researchers estimate the extent of energy suppliers' activities targeted at various energy markets. The study draws on a wide range of sources, including surveys, interviews, reviews of relevant documents, official industry statistics, and robustness checks.
Solid Growth in the Supplier Industry for Norwegian Renewable Energy in 2023
The supplier industry for Norwegian renewable energy recorded total revenues of NOK 82.3 billion in 2023, an increase of 17 percent from NOK 70.5 billion in 2022.
For the first time, the Ministry of Energy has commissioned a comprehensive study of activities in the Norwegian energy industries in 2023. Conducted by Multiconsult, the study includes both the petroleum-focused supplier industry and the renewable energy sector. The petroleum-focused supplier industry remains the largest in terms of revenue and employment. At the same time, the renewable energy sector continues to grow.
"The energy-focused supplier industry is thriving! This report once again proves that we have the world's best industry. Everyone should note that the largest growth is in renewable energy, especially offshore wind. Offshore wind is already a major export industry for Norway and is set to grow even larger. Meanwhile, the supplier industry in oil and gas maintains its strong position both in Norway and internationally. This is important because the oil and gas industry will be developed, not phased out. We should all be grateful for and proud of the work done by Norwegian workers, whether in oil and gas, renewables, or the supplier industries," says the Norwegian Minister of Energy Terje Aasland.
Offshore Wind Power Drives Growth
The main driver of growth in the renewable energy sector is the increase in international turnover for offshore wind power, which grew by over 30 percent from 2022. International turnover includes exports and revenues from foreign subsidiaries. Total revenues for the supplier industries in petroleum, renewable energy, hydrogen, and CCS reached NOK 532 billion in 2023.
International revenues from offshore wind power were NOK 38.6 billion in 2023, marking a 30 percent increase and serving as the primary reason for growth in the renewable energy sector. Much of the growth in offshore wind power stems from deliveries to maritime services and shipyards.
The total international revenue for the renewable energy sector was just under NOK 56 billion, rising to over NOK 59 billion when including hydrogen and CCS. Of this, more than NOK 28 billion came from exports, while NOK 31 billion was generated by subsidiaries abroad. Growth in domestic solar energy in 2023 contributed to stable revenues in the renewable energy sector in Norway, despite a continued decline in revenues from onshore wind power.
Petroleum-Focused Supplier Industry Remains Dominant
The petroleum-focused supplier industry recorded total revenues of NOK 442.3 billion, with international revenues amounting to NOK 148.4 billion. In 2022, international revenues were estimated at NOK 118 billion. Although the figures are not directly comparable since Multiconsult did not conduct the 2022 survey, and assumptions may differ, it is reasonable to conclude there was significant growth in international revenues for the petroleum-focused supplier industry from 2022 to 2023.
The United Kingdom is the largest international market for Norwegian petroleum-focused supplier industries, with international revenues exceeding NOK 25 billion. Brazil and the United States rank second and third, with international revenues of NOK 21 billion and NOK 11 billion, respectively.