Latest news with #Aasland
Yahoo
30-04-2025
- Business
- Yahoo
Don't give up on oil, Norway warns Britain
Norway will never turn its back on the North Sea as Britain has done, its energy minister has said in a rebuke to Labour's net zero pledges. Terje Aasland told The Telegraph that Norway had 'a totally different view' to the UK on the oil and gas industry which he said creates jobs and wealth. Mr Aasland said: 'We want to develop [the North Sea] for the long-term, because the oil and gas industry and the service industry is really important. It saves jobs and creates a lot of value for Norwegian society. 'I think in the UK, the oil and gas industry has contributed in just the same way – until now.' Ed Miliband, the Energy Secretary, has banned all new drilling for oil and gas in the North Sea as part of his bid to help Britain hit net zero by 2050. However, Mr Aasland, who is an electrician by trade, said the process of switching entirely to renewable energy sources would be a slow process and Norway expected to be sending fossil fuels to Britain 'for many decades'. Norway has amassed the biggest sovereign wealth fund in the world largely thanks to its vast investments in oil and gas. The fund is currently worth around £1.3 trillion, equivalent to £235,000 for every Norwegian. The country is one of the biggest investors in the North Sea, with over 7bn barrels of proven oil reserves. In addition to fossil fuels, Norway also owns swathes of the UK's prime real estate, with significant investments in London's West End including stretches of Covent Garden, Regent Street and Soho. Mr Aasland's comments come as Mr Miliband and Sir Keir Starmer face increasing pressure over their net zero stance following mass blackouts across Spain, Portugal and parts of France earlier this week. Red Eléctrica, Spain's national grid operator, has since said the power cuts were caused by a drop in solar power generation. Spain has seen a massive increase in renewable and low carbon electricity generation in recent years, with green energy sources replacing fossil fuels such as coal and gas, as well as nuclear. Spain's Socialist prime minister, Pedro Sánchez, was accused on Wednesday of putting green ideology ahead of energy security. Alberto Núñez Feijóo, leader of the opposition People's Party, said Mr Sánchez was covering up information about the cause of the power cut and prioritising green ideology in his energy policy. In the UK there are now growing signs of a civil war within Labour over its green policies after Sir Tony Blair said on Tuesday that the Government's current net zero policies were 'doomed to fail'. The former prime minister, who has advised Sir Keir informally, appeared to back down on Wednesday and insisted he supported Labour's plan to reach net zero by 2050. However, Downing Street failed to guarantee Mr Miliband would still be in post by the next election. In addition to banning North Sea licences, Mr Miliband and Sir Keir have increased the so-called windfall levy on oil and gas producers which charges a 78pc tax on their profits. Asked what the impact of such policies would have had on Norway, Mr Aasland said: 'We would have seen investments going to other places in the world.' He added: 'I think if you want to support industry for the long-term, you have to be predictable, you have to have a stable framework, and you have to work together with the industry. 'During the pandemic we saw the supply chains for the oil and gas industry were running out of contracts so we made a tax package to the industry so they could develop more resources in a difficult time – and I got a lot of projects approved. 'That means the Norwegian oil and gas production situation now is quite good. Last year, we produced 124bn cubic metres of gas that we exported to the European market. Norwegian production is now at a peak and will stay there for three to five years.' Norway became Britain's primary source of gas last year as UK output shrank in the wake of the windfall tax and a ban on new licences. In the year to September 2024 the UK relied on Norway for 29bn cubic metres of gas, supplied by subsea pipeline and costing consumers £10bn. Another £10bn was spent buying Norwegian oil. It means the UK paid Norway the equivalent of £714 for every UK household last year alone. Mr Aasland said he expected Norway's one-sided relationship with the UK to continue as net zero policies accelerate the decline of Britain's North Sea energy industry. He added: 'Norway has 30pc of the European market. We expect more and more European countries will invest in renewable energy which we will also do in Norway, but gas will deliver the base load capacity that is really important to maintain [stability] in electric systems. 'I think the pipeline gas from Norway will be one of the last sources of gas that the UK stops using.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
30-04-2025
- Business
- Telegraph
Don't give up on oil, Norway warns Britain
Norway will never turn its back on the North Sea as Britain has done, its energy minister has said in a rebuke to Labour's net zero pledges. Terje Aasland told The Telegraph that Norway had 'a totally different view' to the UK on the oil and gas industry which he said creates jobs and wealth. Mr Aasland said: 'We want to develop [the North Sea] for the long-term, because the oil and gas industry and the service industry is really important. It saves jobs and creates a lot of value for Norwegian society. 'I think in the UK, the oil and gas industry has contributed in just the same way – until now.' Ed Miliband, the Energy Secretary, has banned all new drilling for oil and gas in the North Sea as part of his bid to help Britain hit net zero by 2050. However, Mr Aasland, who is an electrician by trade, said the process of switching entirely to renewable energy sources would be a slow process and Norway expected to be sending fossil fuels to Britain 'for many decades'. Norway has amassed the biggest sovereign wealth fund in the world largely thanks to its vast investments in oil and gas. The fund is currently worth around £1.3 trillion, equivalent to £235,000 for every Norwegian. The country is one of the biggest investors in the North Sea, with over 7bn barrels of proven oil reserves. In addition to fossil fuels, Norway also owns swathes of the UK's prime real estate, with significant investments in London's West End including stretches of Covent Garden, Regent Street and Soho. Mr Aasland's comments come as Mr Miliband and Sir Keir Starmer face increasing pressure over their net zero stance following mass blackouts across Spain, Portugal and parts of France earlier this week. Red Eléctrica, Spain's national grid operator, has since said the power cuts were caused by a drop in solar power generation. Spain has seen a massive increase in renewable and low carbon electricity generation in recent years, with green energy sources replacing fossil fuels such as coal and gas, as well as nuclear. Spain's Socialist prime minister, Pedro Sánchez, was accused on Wednesday of putting green ideology ahead of energy security. Alberto Núñez Feijóo, leader of the opposition People's Party, said Mr Sánchez was covering up information about the cause of the power cut and prioritising green ideology in his energy policy. In the UK there are now growing signs of a civil war within Labour over its green policies after Sir Tony Blair said on Tuesday that the Government's current net zero policies were 'doomed to fail'. The former prime minister, who has advised Sir Keir informally, appeared to back down on Wednesday and insisted he supported Labour's plan to reach net zero by 2050. However, Downing Street failed to guarantee Mr Miliband would still be in post by the next election. In addition to banning North Sea licences, Mr Miliband and Sir Keir have increased the so-called windfall levy on oil and gas producers which charges a 78pc tax on their profits. Asked what the impact of such policies would have had on Norway, Mr Aasland said: 'We would have seen investments going to other places in the world.' He added: 'I think if you want to support industry for the long-term, you have to be predictable, you have to have a stable framework, and you have to work together with the industry. 'During the pandemic we saw the supply chains for the oil and gas industry were running out of contracts so we made a tax package to the industry so they could develop more resources in a difficult time – and I got a lot of projects approved. 'That means the Norwegian oil and gas production situation now is quite good. Last year, we produced 124bn cubic metres of gas that we exported to the European market. Norwegian production is now at a peak and will stay there for three to five years.' Norway became Britain's primary source of gas last year as UK output shrank in the wake of the windfall tax and a ban on new licences. In the year to September 2024 the UK relied on Norway for 29bn cubic metres of gas, supplied by subsea pipeline and costing consumers £10bn. Another £10bn was spent buying Norwegian oil. It means the UK paid Norway the equivalent of £714 for every UK household last year alone. Mr Aasland said he expected Norway's one-sided relationship with the UK to continue as net zero policies accelerate the decline of Britain's North Sea energy industry. He added: 'Norway has 30pc of the European market. We expect more and more European countries will invest in renewable energy which we will also do in Norway, but gas will deliver the base load capacity that is really important to maintain [stability] in electric systems. 'I think the pipeline gas from Norway will be one of the last sources of gas that the UK stops using.'
Yahoo
01-03-2025
- Business
- Yahoo
Citizens shocked over government's billion-dollar offshore decision: 'We have a moral responsibility to act'
Norway generates more than 95% of its electricity from renewables, according to the International Energy Agency, but it seems committed to expanding its oil and gas portfolio. Reuters reported in January that Norway approved 53 exploration permits for 20 companies interested in offshore oil and gas drilling in the Arctic. "If we are to uphold a stable production in the years to come, we must explore more and invest more," Energy Minister Terje Aasland said. Even though the Scandinavian country is internally dependent on clean energy, it is the world's fourth-largest exporter of natural gas, sitting behind only the United States, Russia, and Qatar. Since Russia's invasion of Ukraine in 2022, it has become Europe's top provider. The scientific consensus is that pollution from dirty fuels is the primary reason the planet is warming at an unnatural rate, contributing to more intense extreme weather, food insecurity, displacement, and the spread of disease, among other troublesome effects. The awarded total represented a dip from last year's 62 licenses to 24 companies, per the report, yet it was an increase from 2023's numbers. Norway also suggested an expanded Arctic exploration was on the way. Environmental organizations such as Greenpeace, Grandparents for Climate, and Extinction Rebellion were alarmed by the country's continued commitment to dirty fuels, sparking protests outside the hotel where Aasland made the announcement. "We have a moral responsibility to act," climate advocate Greta Thunberg, who joined the protest, told public broadcaster NRK, according to Reuters. One key factor driving the dirty fuel investment is a desire for economic prosperity and security. In Norway, whose grid mostly relies on hydropower thanks to its abundant natural resources, the oil industry is expected to make up 20.5% of the GDP in 2025, per Statista. To help offset this, the country has adopted a "polluter-pays principle," according to the International Energy Agency, becoming one of the first nations to implement a carbon tax in 1991. Now, around 85% of its domestic planet-warming pollution is subject to a CO2 tax, covered by the European Union Emissions Trading System, or both. Could America stop using oil and gas by 2050? For sure No way Only certain states could I'm not sure Click your choice to see results and speak your mind. In many countries, energy independence is a primary concern, as it can help lower electricity costs. However, renewable power is typically more affordable and has less volatile pricing. To that end, the EU has boosted its share of clean power. For instance, according to Ember, wind and solar outpaced dirty fuel consumption in the first half of 2024. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
