Norway increases oil gas extraction, the Greeks cry…

Earlier this month, Norway's energy ministry said the country would step up oil and gas exploration in the Norwegian continental shelf to improve its energy security and that of its friends and neighbors in Europe.

Traditionally one of the largest suppliers of natural gas to Europe, Norway became the largest single supplier last year as flows of Russian gas virtually stopped. And it seems that Norway wants to stay in this position.

“ The oil adventure in the north has just begun,” Oil and Energy Minister Terje Aasland said in early May, calling on Norwegian oil and gas companies to fulfill their “ social responsibility ” to ensure safety energy of the country and to " leave no stone unturned " to increase gas production and fatten the famous Norwegian sovereign wealth fund which ensures the well-being of the population.

To say that climate activists have not taken it well is an understatement, and many followers of Greta Thunberg have started protesting and stamping their feet.

Norway is known for its clean grid – thanks to abundant hydroelectric resources that climate activists don't much like to talk about – and its per capita ownership of electric vehicles, which is the highest in the world: a feat made possible by the combination of a small population and a high standard of living, not least thanks to oil profits.

Speaking of oil profits, last year Norway's sovereign wealth fund, the largest in the world, set itself the goal of making its portfolio carbon-neutral by 2050. The fund is already divesting some holdings in fossil fuels, with great media coverage and with the cheering of activists, but, in the meantime, is fueled by profits from the sale of gas and oil.

Now, suddenly, it is socially responsible for the Norwegian energy industry to ramp up production of the same fuels that the sovereign wealth fund has divested from, albeit carelessly. Activists have every right to be outraged, and that's exactly what they do.

“ Oil drilling in the Arctic is like adding fuel to the fire ,” the head of Greenpeace Norway told C NBC .

“Both Norway and the oil companies need to stop cynically exploiting Russia's war in Ukraine ,” Frode Pleym said. Norway's aggressive and greedy oil policy not only solidifies Oslo's position as Europe's top energy supplier, but locks an entire continent into future dependence on fossil fuels. The alternative to oil and gas is no longer oil and gas, but more energy efficiency and renewable energy .”
These comments fit into a line of criticism by the climate activist lobby against European policies to address last year's energy crisis, which actually spurred greater use of oil and gas, including through direct subsidies at the pump.

This is a difficult criticism to dismiss: by shouldering part of the rising cost of fuel, European governments have effectively stimulated more oil consumption than would otherwise have been affordable for most people. Of course, discouraging oil use by refusing to cover rising costs would have fueled a much higher inflation rate, but that's not at the top of the climate change agenda.

Activists are understandably angry at the Norwegian government, but its focus on energy security is equally understandable. The whole world has seen what happens when energy security is compromised. No one would want this to happen again. And Norway has the resources and expertise to bring them to market.

According to climate activists quoted by CNBC, this is "a middle finger to the Paris Agreement." Maybe it is, but if Europe's year of crisis has shown us one thing, it's that when energy security is at stake, the Paris Agreement takes a back seat. Also because without energy security, without a system capable of guaranteeing an affordable price for energy, there is no popular support and there is the risk of seeing the whole castle of apparent Western democracy fall apart as if made of playing cards.

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The article Norway increases the extraction of petroleum gas, the Greeks cry… comes from Scenari Economics .

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This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-norvegia-aumenta-lestrazione-di-gas-di-petrolio-i-gretini-piangono/ on Wed, 24 May 2023 13:02:26 +0000.