Norway Expands Gas Exploration Amid Rejection of Russian Raw Materials
The Norwegian authorities encourage oil and gas companies to intensify exploration and production of hydrocarbons in the Barents Sea. After Russia left the European market, it was Norway that became the largest supplier of oil and gas to the EU
The largest oil and gas companies in Norway are intensifying exploration of deposits in the Arctic, and the government is pushing them to do so, writes Bloomberg. The reason is the desire to secure for Norway the status of the largest supplier of hydrocarbons to the European market, which the country won after Europe abandoned Russian raw materials.
The two main mining areas off the coast of Norway are located in the North Sea and the Barents Sea. According to estimates cited by Bloomberg, the Barents Sea contains more than 60% of the undiscovered hydrocarbon resources of the kingdom. Despite the fact that the Arctic waters were considered promising, exploration of resources there was limited, and the development of deposits was hampered by a lack of infrastructure.
According to Bloomberg, military actions in Ukraine have changed everything. Norway has become the largest supplier of natural gas to Europe. Oslo is under constant pressure as it is expected to increase its fuel supplies as energy ties with Moscow are severed.
“The status quo is not an option. Even if we just want to maintain production levels, we have to do more exploration, we have to find more,” Torger Rod, chief executive officer of Barents Sea mining company Var Energi ASA, told the agency.
The country’s authorities announced an increase in hydrocarbon production against the background of the refusal of Russian resources last summer. The Ministry of Energy has agreed to review permits for the development of the Troll, Gina Krog, Duva, Oseberg, Asgard and Mikkel fields. Oslo’s energy revenue increased significantly last year, with an oil tax of NOK 884 billion ($82.4 billion), three times more than in 2021. The country promised to send part of the oil windfall to help Ukraine.
In early March, Eirik Warness, senior vice president of the Norwegian oil and gas company Equinor, said that Norway would not be able to replace Russia in the energy market in Europe.
