Norway Approves Development of 19 Oil and Gas Fields, Investing over $18.5 Billion, Amid Environmental Concerns

On Wednesday, the Norwegian government announced its approval for the development of 19 oil and gas fields, with investments totaling over 200 billion Norwegian crowns ($18.51 billion). This decision aligns with Norway’s long-term production strategy, aiming to extend oil and gas extraction for many years ahead. In 2020, Norway’s parliament introduced temporary tax incentives to stimulate petroleum investments during a period of low activity. This led to a surge in applications from energy companies. Among the field developments granted final approval on Wednesday, Aker BP (AKRBP.OL) will operate nine fields, Equinor (EQNR.OL) will operate three fields, and Wintershall Dea and OMV (OMVV.VI) will operate several fields. Minister of Petroleum and Energy Terje Aasland stated during a press conference that these projects will contribute to maintaining a consistently high output from Norway’s continental shelf, while also creating employment opportunities and generating value. Norway’s petroleum production faces opposition from environmentalists and other individuals concerned about the contribution of carbon emissions from oil and gas combustion to climate change. However, the government argues that Norway’s oil and gas resources are crucial for Europe’s energy security and will remain necessary for many decades to come. Following Moscow’s reduction in supplies due to the war in Ukraine, Norway surpassed Russia as Europe’s largest gas supplier last year.