Norway Defies EU Push to Limit Arctic Drilling

Norway will continue developing its oil and natural gas resources in the Barents Sea despite the European Union’s support for a ban on new Arctic drilling, Energy Minister Terje Aasland told Reuters. He also said Norway no longer sees itself as Europe’s “green battery”, describing the concept as a flawed idea.

Oslo aims to maintain petroleum production and exports at roughly current levels until at least 2035, with Barents Sea resources playing a key role. Norway currently meets around 30% of gas demand in both the EU and the UK.

Aasland argued that continued activity in the Barents Sea serves both Norwegian and European interests. Equinor CEO Anders Opedal said oil and liquefied natural gas from the region could be shipped elsewhere in the world if rejected by the EU.

Greenpeace has warned that new projects could become uneconomic as demand declines, arguing that fields discovered today could begin production just as European gas demand is falling sharply.

Aasland emphasized that developing resources in the Barents Sea remains Norway’s sovereign right, even if the EU continues to support a moratorium. He also urged European countries to strengthen their stable power supply, which he said has been weakened by the closure of coal and nuclear plants and a lack of investment in new gas-fired generation. Aasland argued that doing so would lower prices and allow power to flow more readily between countries.

“The future lies in having a very strong and integrated system”, Aasland said.

(Reuters, max)