The Norwegian government has come under intense criticism for approving plans to reopen three North Sea gasfields nearly three decades after they were shut down, aiming to plug energy supply gaps triggered by the Middle East conflict.
Approval for New Exploration
Oslo has also granted permission for oil and gas companies to explore in 70 new locations across the North Sea, Barents Sea, and Norwegian Sea. This decision comes amid sharp price rises in oil and gas following the US and Israel's attack on Iran in February.
The Labour-run government's move defies advice from the country's environment agency and has infuriated left-leaning parties.
Prime Minister's Justification
Prime Minister Jonas Gahr Støre stated, "We live in troubled times," as he announced the decision, which he said would "create great value for the community, lay the foundation for good jobs throughout the country, ensure our common welfare and contribute to Europe's energy security and safety."
Gasfields to Be Reopened
The Albuskjell, Vest Ekofisk, and Tommeliten Gamma gasfields in the North Sea were closed in 1998. The government plans to spend 19 billion kroner (£1.5 billion) on restarting them by the end of 2028, with production expected to continue until 2048. The extracted gas will be sent via pipeline to Germany, while light oil will be shipped to the UK.
Context of UK Energy Policy
Norway's expansion of North Sea oil and gas production coincides with a debate in the UK over the future of hydrocarbons in its waters. The UK Labour government has banned new exploration licences, but Energy Secretary Ed Miliband faces pressure to decide on two projects granted licences under the previous Conservative government. Norway's state oil company Equinor hopes to develop the Rosebank oilfield, while Shell awaits a decision on its Jackdaw gas project. Climate campaigners argue these projects would undermine the UK's climate agenda, while some industry experts claim domestic fossil fuels would result in lower emissions than US imports and offer greater economic benefits.
Environmental Concerns
The 70 new areas of Norway's seabed opened for exploration include some closer to the coast than ever before. Companies have until 1 September to apply, with licences to be granted early next year. Lars Haltbrekken, deputy leader and environment spokesperson for the Socialist Left party, described the decision as madness and accused the government of greenwashing.
"It shows that the government is once again blatantly ignoring environmental advice from its own experts," he said. "All the talk about responsible oil extraction is nothing but nonsense. It's greenwashing through and through, with vulnerable and important natural areas being put at risk with full awareness."
He warned that expanding exploration licences would not resolve today's oil crisis and could have "potentially catastrophic consequences for fish and bird populations." He added, "We are now risking oil drilling right up to the shoreline. If an accident happens, we have no chance of preventing an environmental catastrophe."
Equinor's Record Production
Equinor has pumped record amounts of oil and gas since the US-Israeli war with Iran and the closure of the Strait of Hormuz disrupted Gulf supplies. In the first quarter, it pumped 2.31 million barrels of oil equivalent per day, almost 9% more than the same period last year and nearly double what financial analysts had predicted. The company's record fossil fuel production, combined with surging market prices, led to its highest quarterly profits since 2023, when Russia's invasion of Ukraine caused a gas supply shock across Europe. Equinor expects the current disruption to last well beyond any end to hostilities.
Government's Stance
Norway's Energy Minister Terje Aasland said, "Norwegian production of oil and gas is an important contribution to energy security in Europe. Development of new gasfields helps Norway maintain high deliveries in the long term. This has become more important after Russia's full-scale invasion of Ukraine and the conflict in the Middle East." The Norwegian prime minister's office declined to comment further.
