Higher oil prices and global expansion efforts have helped Norway's oil-industry supply chain triple annual revenues over the past dozen years and momentum is expected to continue even as domestic petroleum production continues to fall, according to a report released Tuesday that was commissioned by Norway's government.

Norwegian oil-production suppliers--including National Oilwell Varco Inc. (NOV), Aker Solutions ASA (AKSO.OS) and SeaDrill Ltd. (SDRL, SDRL.OS)--pulled in a combined NOK361 ($62 billion) in 2011 amid a spate of investments by big oil producers in Norway and abroad looking to increase oil recovery from existing fields and pump money into new fields.

Good times for Norway 's oil supply sector--a core industry for the northern European state--are expected to continue as these companies broaden their customer base beyond the Nordic region, according to the report, conducted by the Rystad Energy analysis firm. Suppliers provide a range of products needed for oil production, including rigs, drilling services, and subsea installations.

The report was issued in conjunction with the Offshore Northern Seas conference taking place this week in Stavanger , on the southwest coast of Norway . Norwegian oil and gas producer Statoil ASA (STO, STL.OS) has its headquarters in Stavanger . Statoil on Tuesday announced measures to step up Arctic activities by drilling nine wells during a 2013 Barents Sea exploration campaign.

Statoil's recent Skrugard and Havis discoveries are among the projects driving the company's optimism, together with the giant North Sea field Johan Sverdrup, which may contain 2.4 billion barrels of oil equivalent, according to Norway 's Petroleum Directorate.

The Norwegian oil supply sector includes Fred. Olsen Energy ASA (FOE.OS), DOF ASA (DOF.OS), AGR Group ASA (AGR.OS), BW Offshore Ltd. (BWO.OS) and Songa Offshore SE (SONG.OS). Norway was the 14th largest supplier of the world's oil in 2011, producing about 2.5% of the world's oil on a daily basis, most of which is tagged for export.

Norway 's domestic oil and natural gas industry has reputedly difficult conditions, including the frigid conditions of Norway 's continental shelf. By confronting these technical issues in Norway , the nation's suppliers have become more globally competitive, Minister of Petroleum and Energy Ola Borten Moe said Tuesday.

Key international markets for Norway-based suppliers include Brazil , Angola , the U.S. and the U.K. Rystad expects Norway oil-supply revenues from those nations in the subsea and installation segment to nearly double to $40 billion by 2016; while revenue from rig and drilling services are expected to grow 34% to $47 billion.

"Internationalization gives local ripple effects and powerful growth impulses all across the country," Mr. Moe said.

Global expansion is necessary. Norway 's combined oil and gas production has fallen since 2004 and as output slows from aging giant fields such as Ekofisk, Statfjord, Oseberg and Gullfaks. Still, offshore oil and gas investments in Norway have increased significantly, and are expected to remain strong.

The high cost of oil, with prices exceeding $100 dollars per barrel, is driving much of the optimism by oil companies. High prices "means it's profitable to develop fields with higher break-even oil price," the Rystad Energy report said.

The firm expects global onshore oil and gas production at 104 million barrels per day in 2030, and offshore production at 67 million barrels per day. In 2005, onshore oil and gas production ran at a pace of about 100 million barrels of oil equivalent per day, and offshore production was 41 million barrels.

New production from deep and ultra deep waters is expected to be twice as high in the period from 2021 and 2025 compared to the 2011 to 2015 period, indicating continued demand for deep water rigs and equipment that Norwegian companies supply.

Wood Mackenzie, a separate oil analysis firm, said in a report issued Tuesday that Norway will be the fifth-biggest spender on development projects in the world. Investments are expected to reach $25 billion in 2012, up 30% from 2011, and forecast to increase to $30 billion in 2015.

"Over the next three years, we estimate over US$82 billion will be invested in Norway 's upstream sector," Ross Cassidy, a Wood Mackenzie research analyst said.

Statoil and Petoro AS , which manages the Norwegian government's State Direct Financial Interest direct ownership in oil fields, will invest around US$40 billion combined, around half of the total investment in this period, Wood Mackenzie said.

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