By Lars Erik Taraldsen on 6/11/2021
OSLO (Bloomberg) –Norway, Western Europe’s greatest oil producing nation, plans to broaden its inexperienced energy business and strengthen its energy grid, however isn’t prepared to budge in terms of exploiting its oil and gasoline sources.
Petroleum and Energy Minister Tina Bru right now introduced the authorities’s white paper on energy sources, a doc outlining how Norway will meet its energy wants and attain local weather objectives. Regardless of elevated stress from smaller events to alter oil coverage and a warning from the Worldwide Energy Company that new oil, gasoline and coal fields must be scrapped if the world is to achieve net-zero by 2050, the authorities isn’t prepared to halt growing new fields.
“We are going to facilitate a future-oriented Norwegian oil and gasoline business able to delivering manufacturing with low emissions inside the framework of our local weather coverage,” Bru mentioned in a press release.
The oil-rich Nordic nation, which produces most of its electrical energy from hydro energy, earlier this week introduced that it’s going to begin a course of to seek out extra areas for growing offshore wind. There are at the moment two open for improvement — one devoted to floating wind tasks and the different to bottom-fixed farms — and the authorities sees the expertise as a technique to make the most of its offshore oil know-how.
“Retaining experience and applied sciences in the oil and gasoline sector can be important for the improvement of recent industries and applied sciences akin to carbon seize and storage, offshore wind and hydrogen,” the minister mentioned.
Bru needs to develop the business that supplied the basis for a $1.4 trillion sovereign wealth fund, whereas retaining emissions from manufacturing as little as doable. Work is already underway on powering oil installations with renewable energy from shore, with the big Johan Sverdrup subject already hooked as much as the grid.
World oil demand is about to get well to pre-pandemic ranges late subsequent yr, the IEA mentioned on Friday. It urged OPEC and its allies to maintain markets balanced by tapping their plentiful spare manufacturing capability.
Whereas the Norwegian Parliament agreed on a beneficiant tax package deal to assist the oil and gasoline business final yr, it additionally agreed that the business’s emissions have to be lower by 50% inside 2030. Bru, representing the Conservative Celebration, says this could’t be reached with out powering the installations from shore, whereas the opposition Labor Celebration and the Socialist Left choose to make use of offshore wind. That’s not doable earlier than 2030, in response to Bru.
The federal government additionally introduced plans to ascertain a hub for the use of hydrogen in the marine transport and appointed a committee to take a look at easy methods to develop the grid to deal with the elevated demand from business at a time when Norway’s EV fleet is booming.
With Parliament assembly for the final time subsequent week earlier than breaking for the summer time, a vote on the white paper received’t be doable till after the basic election in September.