While much of Europe is still discussing energy transition and phasing out fossil fuels, Norway strongly reiterates its choice to continue extracting and indeed expand oil and gas production from its seabed.
As highlighted by the Guardian, which dedicates an article to Norway’s strategy, Energy Minister Terje Aasland says it plainly: “We will develop, not dismantle activity on our continental shelf.”
A clear stance, made even more explicit this week with the announcement of the reopening of three gas fields in the North Sea, closed for nearly thirty years, to address energy shortages that emerged after the war in Ukraine.
Reopening old fields
The Norwegian government has authorized the return to production of the Albuskjell, Vest Ekofisk, and Tommeliten Gamma fields, all located off the southern coast. The three fields, closed in 1998, will be operational again by the end of 2028.
The goal is clear: to maintain total hydrocarbon production around the levels forecast for 2026, which have been essentially stable for almost twenty years.
Norway currently has 97 active offshore fields, three of which began production only last year. According to plans by the Norwegian Offshore Directorate, the government agency responsible for these activities, the number will rise to one hundred and beyond in the next two years.
Daily oil production currently stands at around two million barrels per day, a level the country intends to preserve for the rest of this decade. Today Norway supplies about one third of the gas consumed in Europe.
The new Arctic frontier
Attention is not focused solely on the North Sea. The Barents Sea, in the far north, represents the new frontier for gas and oil.
There is also the prospect, still distant but concrete, of exploiting minerals from the seabed between northern Norway and Greenland, following initial positive surveys conducted by the Offshore Directorate itself.
Aasland, a former electrician and unionist and the longest-serving Energy Minister, emphasizes Norway’s strategic role: “Norwegian offshore production plays an important role in Europe’s energy security. The world and Europe will need oil and gas for decades to come. It is essential that Norway continues to develop its continental potential to remain a reliable and long-term supplier.”
Equinor and industry figures
Equinor, the major energy company 67% state-owned, confirms the government’s line. The company declares it wants to surpass 2020 production levels, which were 1.2 million barrels per day. To do so, it will invest about 6 billion dollars annually until that date, focusing on new drilling, development of smaller fields, new infrastructure, and pipelines.
Ola Morten Aanestad of Equinor explains that maintaining higher production is essential for the company’s market value.
The Norwegian state is expected to collect about 2 billion pounds in dividends this year from its stake in Equinor alone.
Employment, taxes, and the sovereign wealth fund
Minister Aasland defends Norway’s approach by speaking of responsibility towards Europe and the 210,000 workers in the sector. “It is very important that these people wake up in the morning knowing they have a secure job also in the future.”
The Norwegian tax system, with a 78% rate stable since the 1970s, high but predictable, is presented as an attractive element for investors.
The revenues from these taxes feed the gigantic Norwegian sovereign wealth fund, which has now reached 1.5 trillion pounds and allows the country to manage a solid budget surplus.
An approach opposite to the British one
Norway’s position sharply contrasts with that of neighboring the United Kingdom, which has excluded the issuance of new exploration licenses in the North Sea.
Terje Sørenes, chief economist of the Norwegian Offshore Directorate, confirms the goal: to extend production as much as possible and, where feasible, increase it.
The criticisms
The choice has sparked strong negative reactions among environmental organizations and some political parties.
The Norwegian Environment Agency had advised against reopening the fields, but the government decided to proceed anyway. The Socialist Left Party accused the executive of ignoring the opinions of its own experts.
Lars Haltbrekken, deputy secretary and environmental spokesperson of the party, was particularly harsh: “Once again the government shamelessly ignores the environmental advice of its experts. All the talk about responsible extraction is just hot air. This is pure greenwashing, with vulnerable and important natural areas knowingly put at risk.”
