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Norway Wrestles With Response to Energy Crisis

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Norway is reaping major benefits from the energy battle between Russia and Europe. Norwegian upstream players have responded to calls to increase near-term production, revenues are booming, and the country has quickly become Europe’s reliable supplier of choice. But there are headwinds: uncertainty over the regulatory outlook for Europe's gas market is raising red flags for longer-term investment in projects and infrastructure. And firms complain that the lack of offshore wind opportunities — a key plank of Norway’s energy transition — will create a bottleneck for its deployment that could undermine Oslo’s aggressive renewables goal. Around $145 billion in tax income from Norway’s upstream sector is expected to flow into government coffers this year versus around $35 billion last year, according to Rystad Energy. Producers have stepped up gas output by 10% this year to keep supplies flowing to Europe and help offset the drop in gas flows from Russia. As a result, non-EU member Norway is now the largest supplier of energy to Europe, accounting for roughly one-quarter of the region’s consumption.

Topics:
Offshore Oil and Gas, Low-Carbon Policy, Gas Supply, Exploration, Renewable Electricity , Ukraine Crisis
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