Oil and Gas Production Is Splitting Norway
Source: iStock.com/Bet_Noire
Supply industries in Norway are cheering that the industry and politicians want more oil exploration by 2050.
The environmental movement calls it a classic “Emperor’s New Clothes” mentality.
More Oil Exploration!
That is the big message at the ONS energy fair in Stavanger, where optimism reigns in the supply industry.
“We feel that a change is underway, so that the Norwegian shelf will be able to withstand the coming decline and raise production to keep this important industry alive for a long time to come,” says Ole Christian Meldahl, head of the supplier giant SLB in Norway.
Fears of a steep decline in Norwegian oil and gas production toward 2030 have led the industry to join forces during this year’s energy fair to explore more oil and gas on the shelf.
Environmental campaigners, for their part, believe that the industry is closing its eyes to reality, where the consequences of climate change are becoming increasingly clear.
Must Work Differently
The Norwegian Offshore Directorate’s latest resource report shows a steep downward curve for Norwegian petroleum production if no new discoveries are made.
In response to this, the three major Norwegian oil companies—Equinor, Aker BP and Vår Energi—have announced closer cooperation to explore more and find new, large oil and gas discoveries.
At the same time, the Norwegian Confederation of Trade Unions (LO) and the Confederation of Norwegian Enterprise (NHO) submitted proposals to the government to open up exploration in highly disputed sea areas.
The leaders of the supply industry are delighted with the signals from the industry and politicians.
“There are great opportunities, but we can only take those opportunities if we work differently and work together,” says the SLB head.
Aker Solutions also has strong faith in future assignments when it comes to the development of existing oil fields.
Paal Eikeseth, group director at Aker Solutions, says that exciting times lie ahead.
“What is important to remember is that for many years we have had a traditional way of having large developments. When we look ahead, we see that there will probably be more marginal discoveries on the shelf. They need to be developed in a completely different way than before,” he says.
“So, this is very exciting, but it requires the entire industry to change.”
Development of existing fields means smaller installations built by the shipyards.
Operations director at the Worley Rosenberg shipyard, Nils Arne Hatleskog, still believes that oil and gas give the industry a long-term perspective and security that makes it easier to invest in new, sustainable areas such as offshore wind and carbon capture.
“For our part, we have our feet in both camps. We are working particularly on offshore wind and strongly want it to come into place. In addition, we are looking at other energy sources,” says Hatleskog.
“We as a company must seize both. Oil and gas give us long-term perspective and security going forward, and it also makes it easier for us to invest in new areas,” he continues.
EU Warning
EU Commission President Ursula von der Leyen was clear when she stated in a video speech at the opening of the ONS that dependence on fossil energy makes Europe more vulnerable.
That does not scare the supply giants.
Meldahl at SLB does not believe that continued high pressure on oil and gas will be an obstacle to the transition.
“Europe will demand that gas regardless, even if they achieve their absolute best forecasts,” he says.
Eikeseth at Aker Solutions believes that experiences with heavy industrial projects can easily be transferred to new energy fields.
“The expertise you are developing now to become even better at oil and gas, that expertise you can build on in other things,” he says.
He highlights that the company recently entered into a collaboration with Rolls-Royce SMR to build modules for small modular nuclear reactors in Sweden.
”The Emperor’s New Clothes” Mentality
Plans for more oil exploration and the desire from LO, NHO and Offshore Norway to open new exploration areas off the coast of Nordland, however, are meeting strong opposition from the environmental movement.
“It is a classic ‘The Emperor’s New Clothes’ mentality when the oil industry and politicians argue that we must search for more oil and gas to prevent a significant drop in production,” says Norwegian environmentalist Frederic Hauge in a press release.
He points out that a drop in fossil fuel production is an absolutely necessary prerequisite for solving the climate crisis, and that this decline cannot be treated as an unexpected problem.
Hauge warns of a rematch if the industry tries to enter vulnerable areas in the north.
“LoVeSe is the world’s most productive area for marine life. When the oil industry now tries to open the door to Nordland VI again, they must expect resistance. We will continue that fight,” warns Hauge.
Source: NRK (in Norwegian)