In case there was any doubt that Norway intends to keep drilling for every last drop of oil and gas, Energy Minister Terje Aasland has a succinct message: "We will develop, not dismantle, activity on our continental shelf." This week, to the dismay of environmental groups, he announced the reopening of three gasfields off Norway's southern coast by the end of 2028 - nearly three decades after they were shuttered in 1998 - to fill a supply gap caused by the war in Ukraine and disruptions from the Middle East.
The decision will keep oil and gas production at roughly 2025 levels, which have been stable for two decades. Norway currently operates 97 offshore oilfields, with three new ones starting last year, and its Offshore Directorate expects "100 and beyond" within two years, maintaining at least 2 million barrels of oil per day. The Barents Sea is the new frontier, though seabed mineral mining between Norway and Greenland remains a distant dream after initial surveys showed potential.
Aasland argues that Norwegian offshore production is vital for European energy security, stating, "The world, and Europe, will have a need for oil and gas for decades to come." The sector generates massive wealth, but the reopening of the Albuskjell, Vest Ekofisk, and Tommeliten Gamma fields has drawn sharp criticism. The country's environment agency advised against it, and Socialist Left deputy leader Lars Haltbrekken accused the government of "greenwashing," saying, "It shows that the government is once again blatantly ignoring environmental advice from its own experts."
Equinor, the state-owned energy company (67% government-owned), plans to maintain production of 1.2 million barrels daily until 2035, investing $6 billion annually. The state's dividend from Equinor is expected to be about £2 billion this year. Aasland, a former electrician and union leader, emphasizes job security for 210,000 energy industry employees, saying, "It is really important that they wake up in the morning knowing they have a safe job for the future."
Norway's consistent 78% tax rate on oil and gas since the 1970s makes it investor-friendly, feeding its £1.5 trillion sovereign wealth fund. This approach contrasts sharply with the UK, which has banned new exploration licences. Terje Sørenes, chief economist at the Norwegian Offshore Directorate, says the goal is to prolong production as long as possible, currently supplying a third of Europe's gas. For now, Europe's energy superpower is prioritizing more drilling well into the 2030s and beyond.