Norway to resume oil production in the Barents Sea due to Russian pressure
The country was going to limit production and switch to "green" energy, but oil supplies have plummeted, threatening an energy crisis
Norway's largest oil and gas companies intend to resume oil exploration and production in the Arctic zones of the Barents Sea. They are faced with a reduction in oil supplies from Russia and the EU's demands to increase its own supplies.
Source. This was reported by Bloomberg with reference to representatives of Norwegian energy companies.
About 60% of Norway's total hydrocarbon reserves are located in the northern Barents Sea, but they are difficult to extract, and companies will have to spend money on the creation of the associated infrastructure.
Moreover, the weather conditions in this area are much harsher and require sophisticated technical solutions and, consequently, investments. Given the trend towards green energy, Norwegian companies thought that these fields would remain undeveloped, but the Russian invasion changed everything, and now Europe needs these reserves.
Currently, Norwegian companies are developing two fields in the Barents Sea – Goliath and Snøvit – located in the southern part of the sea, which greatly simplifies production in this region, as the warm waters of the Gulf Stream reach these areas and prevent the water from freezing. However, the main untouched reserves are in the north, where infrastructure is poorly developed and there are almost no settlements.
But Norway wants to change this situation. Norwegian Energy Minister Terje Aasland called on national oil and gas companies not to hold back and to make every effort to develop new fields. Activists insist that drilling new wells during the climate crisis violates basic human rights. The Norwegian court did not take the activists' side, but they continue to pursue their case in the European Court of Human Rights (ECHR).
Meanwhile, the companies continue to develop their plans to develop new fields, although they are waiting for the court's decision. Var Energi is increasing its investments and has already discovered two new fields in the Barents Sea area, which is quite convenient for development. Equinor, Norway's largest oil and gas company, is also revising its plans for field development in favor of a significant increase in the northern latitudes. According to the company's Vice President Grete Birgit Haaland, Equinor will focus on the development of the Visting field.
"The field is considered to be one of the largest fields in the region, with estimated reserves of 500 million barrels of oil, but the key challenge in developing the field is the complete lack of infrastructure. The nearest settlement is 310 km away.
Background. As a reminder, Polish Orlen is investing almost PLN 60 billion in gas exploration and production.
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