Norway to drill in Arctic regardless of EU stance, says energy minister

Norway intends to proceed with oil and gas development in the Barents Sea, irrespective of the European Union's stance on a moratorium for Arctic hydrocarbon supplies. Energy Minister Terje Aasland declared that Norway no longer considers itself Europe's "green battery."

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In today's geopolitical and security environment, and given the resource situation, I believe continued activity in the Barents Sea serves both Norwegian and European interests.

Since Russia's 2022 invasion of Ukraine, Norway has become Europe's primary supplier of natural gas, fulfilling approximately 30% of the EU and Britain's gas needs. The nation's gas production neared record levels last year, and oil output hit its highest point since 2009. However, official forecasts predict a sharp decline in production after 2030 without new resource development.

Aasland emphasized that continued activity in the Barents Sea aligns with both Norwegian and European interests, especially given the current geopolitical climate and resource availability. He stated this ahead of ONS, Norway's biennial energy conference. While the EU currently backs a ban on new Arctic drilling due to environmental concerns, it is reportedly considering policy revisions amid energy security worries.

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The only thing that will suffer from this is actually European security. We have the flexibility.

Anders Opedal, CEO of Equinor, Norway's leading oil company, noted that oil and liquefied natural gas (LNG) from the Barents Sea could be marketed globally even if the EU rejects them. He warned that European security would suffer if such supplies were cut off. Norway aims to sustain its petroleum production and exports at current levels until at least 2035, with Barents Sea development being crucial for this goal.

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If Norway is to remain a long-term supplier of oil and gas to Europe..., then the ⁠Arctic must be part of that discussion.

Norway argues to EU officials that the Barents Sea areas opened for petroleum activity are ice-free, similar to the North Sea, thus posing lower risks of oil spills and environmental damage. These developments also support jobs and communities in northern Norway. Aasland believes Norway's arguments are being considered in Brussels, but stressed that developing Barents Sea resources is a sovereign right. He added that Arctic oil would find global buyers, and gas could be exported worldwide as LNG from Equinor's Melkoeya LNG plant. The International Energy Agency's executive director has also encouraged the EU to reconsider its opposition to new Arctic developments, citing the need for future supplies to ensure energy security.

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We would develop these areas, and then it will be up to the EU whether they should have a moratorium on buying that gas or oil.