Norway is moving to expand its oil and gas exploration efforts with a new licensing round in frontier areas, following a directive from the country’s parliament. The move is seen as a way to secure long-term energy production despite growing environmental concerns.
According to Reuters, the proposal to restart oil and gas licensing rounds was introduced by the Conservative Party. It passed with majority support after Norway’s centrist party backed it. The centrist party had previously left the ruling coalition, weakening the minority government.
Norway is Europe’s largest supplier of pipeline natural gas and holds the world’s biggest sovereign wealth fund, built on decades of oil and gas revenue. At the same time, it leads in electric vehicle adoption and has set ambitious climate goals.
Despite these green initiatives, officials have made it clear that oil and gas will remain part of the country’s economy for years to come. In its most recent annual licensing round, the government awarded stakes in 53 oil and gas projects, even as opposition from environmental groups intensified.
“We must explore more and invest more to maintain stable production in the years ahead,” said Energy Minister Terje Asland in January, when the licenses were granted. The country faces declining output from aging fields and fewer new discoveries, challenges made more pressing by climate policy debates.
Industry players are responding with record-level investment plans. At the end of 2024, companies announced they would spend about $24.7 billion in 2025, surpassing previous records. The Norwegian energy industry association said the rise was driven by inflation and an increase in drilling at both existing sites and new fields.
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