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Why “Green” Norway will not give up on gas and oil

Norway has no second thoughts about oil exploration and investment in light of the International Energy Agency (IEA) report which suggests no new fossil fuel exploration would be needed for a zero world. All this in a nation that, however, has a strong ecological awareness and is, for example, at the forefront of electric mobility.

The largest oil and gas producer in Western Europe is doubling its development in oil exploration and continues to consider hydrocarbon exploration and production a key part of its economy and income for the state.

The oil and gas sector is a major employer and the main contributor to the so-called oil fund, the largest sovereign fund in the world with $ 1.3 trillion in assets and 1.4% holdings of all listed companies in the world . A situation that protects the country from any crisis and which the government does not want to give up . So while Norway is betting big on offshore wind and carbon capture technology, it still believes oil and gas can continue to create long-term value and, most importantly, valuable jobs. All of this is clearly contained in the Oslo government's white paper on economics.

"The main goal of the government's oil policy – facilitating profitable production in the oil and gas industry in a long-term perspective – is firmly in place," said Norwegian oil and energy minister Tina Bru.

Norway has become yet another oil producing country that has said it will not stop investing in oil and gas since the IEA suggested in a May report that it should no longer make new investments in fossil fuels if it is to gain the climate neutrality for 2050.

The Norwegian Oil and Gas Association also commented on the IEA report, stating that “it does not share the hypothesis that OPEC members alone should account for more than half of the oil and gas production for the world market in the perspective of 2050. If demand does not decline as rapidly as the IEA assumes in its scenario, and the supply side is simultaneously stifled, the global energy supply could go into crisis and lead to very high energy prices. '

Norway's offshore exploration and production activity was high in the first half of 2021 and many new developments in the oil and gas sector are currently under consideration, the Norwegian Petroleum Directorate (NPD) said earlier this month. .

Between January and June, eight discoveries were made in mature areas close to existing infrastructure, which could allow for an economic development of the new discoveries, thus making the North Sea productive for many years in the future.


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The article Why “Green” Norway will not give up on gas and oil comes from ScenariEconomici.it .


This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/perche-la-norvegia-verde-non-rinuncera-a-gas-e-petrolio/ on Sun, 01 Aug 2021 13:43:13 +0000.