By Nicholas Earl
Norway has postponed its next round of new oil and gas exploration licenses for a further three years, putting pressure on the continent to come up with solutions to the energy crisis.
The decision to postpone the 26th licensing round was part of the country’s centre-left minority government’s budget deal with the opposition Socialist Left Party.
It was originally scheduled for this year, had already been delayed but will now not take place for the entire parliamentary period, which ends in September 2025.
Norway’s latest political arrangement runs against the country’s promises to do all it can to help Europe during a Kremlin-backed supply squeeze.
The UK relies on Norway to meet around 38 per cent of its gas needs and a third of its oil needs, making it the country’s biggest overseas trading partner for energy supplies.
Centrica signed a mega three-year gas deal with Norwegian rival Equinor earlier this year, with the British Gas owner set to buy a total of 10 billion cubic meters of gas per year – a hefty chunk of the UK’s typical yearly gas demand.
National Grid was forced to weigh up potentially beginning emergency blackout measures this week amid tight markets, reflecting the urgent nature of the energy crisis this winter.
Its winter outlook contains a worst-case scenario of rolling blackouts in January.
The European Union has also become more dependent on Norwegian supplies, alongside liquefied natural gas from the US and Qatar as it looks to reduce its dependence on Russian fossil fuels.
The bloc has scrambled to top up supplies to 94 per cent of capacity ahead of winter.
Despite its successful top-ups, multiple EU member states have maintained energy rationing measures since late summer including Germany and Spain.
Norway will still hand out licences in existing areas, which often allow oil and gas companies to expand production relatively quickly.
However, the 26th licencing round would be for new unexplored areas, many in the Arctic, which are more environmentally contentious but provide the prospect of bigger potential discoveries.
Meanwhile, Norwegian police have decided it no longer needed military support to help it guard oil and gas installations.
Armed forces from Norway and Nato allies will continue to patrol offshore oil rigs following the sabotage of the Nord Stream gas pipeline in September.
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