Europe will need oil and gas for decades, with Norway's continental shelf expected to remain a cornerstone of the region's energy security, according to Norwegian authorities.
Stable and predictable investment conditions are seen as essential to sustaining production, while emissions are being addressed through carbon pricing, offshore wind power and carbon capture technologies.
Energy cooperation with the European Union is also expected to deepen, with offshore wind, low-emission hydrogen and carbon capture and storage highlighted as key areas.
Snorre Erichsen Skjevrak, state secretary for the Norwegian Ministry of Energy, told Anadolu that Norwegian petroleum production plays an important role in ensuring Europe's energy security.
Skjevrak said that Norway is the largest producer and the only relevant net exporter of oil and gas in Europe.
He noted that the world and Europe will have a need for oil and gas for decades to come, and it is therefore crucial that Norway continue to develop the Norwegian continental shelf to persist as a stable and long-term supplier of energy.
"Therefore, we will ensure stable and predictable framework conditions and continued high levels of exploration activity so that we can deliver stable energy to Europe," he said, adding that, at the same time, environmental and climate considerations are an integral part of Norwegian petroleum policy.
Norway actively supports a global energy and climate transition, he said and added: "Norway's climate policy facilitates emissions reductions both domestically and globally. A broad set of policy instruments helps ensure that the companies operating on the Norwegian shelf take environmental and climate concerns into account at all stages of activity, from exploration to development, operation, and decommissioning."
The main instruments for reducing greenhouse gas emissions on the Norwegian continental shelf are emissions pricing through participation in the European Emissions Trading System (EU ETS) and the carbon tax, Skjevrak explained.
- Investor confidence and production sustainability beyond 2030
Skjevrak said that petroleum production on the Norwegian continental shelf is expected to gradually decline during the 2030s as new resources coming on stream aren't enough to replace the natural decline from existing fields.
He said that without continued exploration and investment in discoveries and existing fields, oil and gas production on the Norwegian continental shelf will decline significantly.
"Norwegian petroleum policy is based on a clear division of roles in resource management. The licensees are responsible for carrying out exploration, development, and operations, including planning, deciding, and executing the operational activities related to exploration, development, and production," he said.
"The state's main roles are to award exploration acreage and to establish the framework conditions for the licensees' activities. We will continue a responsible petroleum policy with stable and predictable framework conditions for the licensees," he said.
This provides the best possible basis for profitable oil and gas production in a long-term perspective and licensees in Norway will explore and invest as long as it is profitable, Skjevrak added.
He explained that several factors make the NCS an attractive investment opportunity, including substantial remaining resources, well-developed infrastructure that enables even small discoveries to be developed at competitive cost levels, low operating expenses, annual access to acreage through licensing rounds, and predictable and stable framework conditions for the industry.
- High ambitions for offshore wind development
Skjevrak said the Norwegian government has awarded project areas for 2,500 megawatts of offshore wind and will present a plan for the continued work on offshore wind in 2026.
"Continued emissions reductions in Norway will lead to increased demand for renewable power. Offshore wind can facilitate a substantial increase in the renewable power production in Norway," he said.
Skjevrak said 80% of the world's offshore wind resources can only be harnessed by floating technology and floating offshore wind will play an important role in reaching the global offshore wind ambitions.
"The Norwegian government contributes to the development of floating offshore wind. CCS will also play a critical role. It enables hard-to-abate industries to cut emissions while safeguarding jobs and maintaining industrial competitiveness. In this way CCS supports a just transition to net zero," he said.
Skjevrak said that cross-border Carbon Capture and Storage (CCS) projects and international cooperation is important to develop the necessary infrastructure and drive down costs.
He also mentioned that as Europe's largest oil and gas producer, Norway's energy deliveries are critical to European energy security.
Skjevrak noted that Norway is committed to maintaining stable and reliable oil and gas supplies to the EU, also in the long term.
Norway has a long-standing and close cooperation with the EU in the energy sector, which has become increasingly important in the current geopolitical climate, he said.
Although not an EU member, Norway is part of the EU single market through the EEA Agreement and a key partner in Europe's energy transition, he noted.
It plays an active role in offshore wind, low-emission hydrogen and CCS through regional cooperation, including the North Seas Energy Cooperation and the North Sea Basin Task Force on CCS, Skjevrak added.
By Murat Temizer
Anadolu Agency
energy@aa.com.tr
