According to Reuters, Norwegian Energy Minister Terje Aasland said during an interview just before the opening of the Norwegian energy conference on August 24 that in order to ensure European energy security, Norway will continue to exploit oil and natural gas resources in the Barents Sea in the Arctic region, regardless of whether the EU supports a suspension of development of Arctic oil and gas resources.
Osland said, 'Given the current geopolitical and security situation, as well as the current state of resources, I believe that continuing operations in the Barents Sea is beneficial for both Norway and Europe. If Norway wants to remain a major oil and gas supplier in the long term, the oil and gas resources in the Barents Sea are crucial.'
Since the Russia-Ukraine conflict, Norway has become the largest natural gas supplier in Europe, meeting about 30% of the natural gas demands of the European Union and the United Kingdom.
Last year, Norway’s natural gas production reached a record high, and oil production also reached its highest level since 2009. Norway plans to maintain the current levels of oil and gas extraction and export until 2035. Approximately 60% of Norway’s untapped oil resources are located in the Barents Sea. Without new sources of oil and gas, Norway’s oil and gas production is expected to decline during the 1930s.
Osland pointed out that the exploitation of the Barents Sea is crucial. "If Norway wants to continue being a long-term oil and gas supplier to Europe... then Arctic development must be part of the discussion."
We will develop these regions. As for whether the EU wants to impose a ban on sales of oil and gas produced in this region by procurement, that is a choice for the EU itself. He added, Arctic petroleum was already targeting the global market, while liquefied natural gas could be exported worldwide through Equinor's operations.
As Norway’s largest oil company, Equinor also stated that if the EU refuses to purchase, oil and liquefied natural gas from the Barents Sea can still be transported to other parts of the world. “What will actually be affected is Europe’s security. We have the flexibility.” said Anders Opedal, CEO of Equinor.
Due to environmental considerations, the EU currently supports a ban on new oil and gas drilling in the Arctic. However, given concerns about energy security, the EU is also considering changing this policy.
International Energy Agency (IEA) Director Fatih Birol also previously urged the EU to reconsider its stance against developing new oil and gas projects in the Arctic, stating that these supplies will still be needed to ensure energy security in the future.
Opponents criticize that the new Arctic project will take many years to be put into operation, and it will hardly help in addressing Europe’s energy challenges in the short term.
Except for oil and natural gas, Norway produces a large amount of renewable energy, exporting it to Europe via cross-border cables.
Norway has previously positioned itself as Europe’s “green battery”. However, Olaf Thorsen says this idea is now outdated, as Norway alone cannot balance Europe’s electricity market. “This is a flawed idea.”
This idea has promoted the construction of new power interconnection lines, including connections with the UK and Germany. However, due to the soaring electricity prices in Europe, there have been some objections in Norway.
The deeper integration of European power systems with Norway leads to greater susceptibility to price fluctuations on the European mainland.
Oslund said that Norway will not build new interconnection lines, but remains committed to strong cooperation in the electricity industry with Europe. He urged countries on the European continent to strengthen their stable power supplies, which have been weakened due to the closure of coal and nuclear power plants, as well as insufficient investment in new natural gas power generation. “The future lies in having a very strong and integrated system,” said Oslund.
