Arya News - EU reviewing support of a ban on new drilling in the Arctic as war impacts energy security.
Norway will continue developing its Arctic oil and gas resources despite European Union (EU) policy seeking to halt new fossil fuel projects in the region, according to a senior government official.
Development of reserves in the Barents Sea is to persist, Energy Minister Terje Aasland told Reuters news agency on Monday. While the EU currently supports a ban on new drilling in the Arctic on environmental grounds , it is reviewing the policy due to energy security concerns.
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Europe has become dependent on Norway as its largest supplier of natural gas since Russia’s invasion of Ukraine in 2022. The Scandinavian nation meets around 30 percent of gas demand in the EU and UK.
With the United States war against Iran also tightening energy markets, such consumers are starting to rethink policy.
Norway has argued to EU officials that the parts of the Barents Sea opened to oil and gas activity are ice-free, and therefore less prone to oil spills and other environmental impact.
“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,” Aasland said.
Anders Opedal, CEO of Equinor, Norway’s biggest oil firm, said oil and liquefied natural gas (LNG) from the Barents Sea can be shipped anywhere in the world if rejected by the EU.
“The only thing that will suffer from this is European security. We have the flexibility,” Opedal told Reuters on the sidelines of the ONS conference.
Oslo’s approach is mirrored by the industry. French oil company Total will appoint a new exploration manager to examine new projects in Norway, CEO Patrick Pouyanne told Norwegian television.
Describing Norway as the natural energy supplier for Europe, he said Total hopes to expand its market share, as EU countries seek resources and new maritime routes closer to home in light of global trade disruptions due to the US-Israel war on Iran.