The head of the Energy Agency, Fatih Birol, has warned this summer that the world is facing the worst energy crisis in 50 years. In the energy agency’s market report for June, the IEA is particularly concerned about the supply of diesel and jet fuel. To turn crude oil into diesel and gasoline, the oil must be refined. Norway’s only refinery is located at Mongstad, north of Bergen in Western Norway. The refinery can make more than all the petrol we use in one year. But the capacity is less than half of the diesel we consume, according to Equinor. But in practice, almost everything that is made at Mongstad is exported. 80 per cent of the diesel we use, and 75 per cent of the petrol, is imported from other countries in a normal year. Industry Minister Jan Christian Vestre (AP) is responsible for ensuring that Norway has enough fuel. Photo: Beate Oma Dahle / NTB The Ministry of Trade and Fisheries is responsible for fuel readiness. Industry Minister Jan Christian Vestre (Ap) denies that we may run out of fuel this winter. – No, we see that as very unlikely. Norway’s fuel readiness is good and robust. The war in Ukraine is putting pressure on the fuel market, and primarily results in higher prices, but we will not run out of petrol and diesel in Norway, says the minister. – Can you be sure of that? – We feel quite sure of that. We also have contingency stocks, the petrol station chains have their own commercial stocks, and we have alternative supply lines. As the situation is now, people and businesses have no reason to fear that there will be no petrol and diesel at the pumps in Norway in the months ahead, he says. The price of diesel has increased by 60 per cent in one year. This has major economic consequences for, among other things, farmers and food production. Photo: Beate Oma Dahle / NTB Society dependent on enough fuel Despite large sales of electric cars in recent years, nearly five out of six passenger cars still run entirely or partly on fossil fuel. In the past year, diesel prices have increased by 60 per cent in Norway, according to Statistics Norway. Skyrocketing prices for diesel mean that a lot of other things increase in price. Large parts of the railway run on diesel. This applies to all trains on the Trønderbanen, Nordlandsbanen, Rørosbanen and Raumabanen. Almost all goods transport along Norwegian roads is driven by diesel-powered trucks. All agricultural machinery runs on diesel. Large construction machinery. A hundred speedboats. As well as many ferries. news has been in contact with the fuel chains Circkle K, St1 (Shell) and Esso. None of the companies report that there are challenges in obtaining fuel. According to Equinor, it is regulated that the fuel stocks in this country for emergency reasons must be sufficient for 17 days’ consumption. For practical reasons, the warehouses will contain more than this. – Can’t live with the prices Frp’s energy policy spokesperson Terje Halleland says that Norway is vulnerable when we are not self-sufficient in fuel. – After all, we export most of what we produce, and if there may now be problems with importing, then we must take measures to ensure sufficient access to fuel. – Fuel is a socially critical infrastructure on which we are completely dependent, if we are to keep society and business and food production going. For important health functions, we have to have access to fuel. We cannot sit and watch other nations in Europe take care of their security and preparedness, while we sit and provide them with the preparedness that we are completely dependent on to keep society going, he says. – Fuel will be very expensive Chief economist Torbjørn Kjus at the industrial group Aker has two decades behind him as an oil market analyst at DNB and Norsk Hydro, among others. He says there is a risk that prices could become very high. Especially if there is a fierce hurricane season in the USA in the autumn. – The high prices of natural gas have meant that everyone who can change power production from gas to diesel does so. Through the pandemic, refining capacity corresponding to 3 million barrels per day has been shut down, while demand has largely returned again, says Kjus. Norway’s second refinery, Esso’s plant at Slagentangen in Vestfold, was shut down last year due to what was then overcapacity in the market. Does not reject subsidies The Minister of Industry does not reject that the government can subsidize fuel if prices were to run even more wildly, but it is far from unproblematic, says Vestre. – Yes, it could be relevant. The challenge is that it is difficult to meet inflation in a good way that does not create new problems, he says. If the government spends too much money through fiscal policy, this may increase the pressure on Norges Bank, which controls interest rates through monetary policy. The Council for Fuel Preparedness is following the situation closely, according to the government. Among other things, representatives from the industry sit there.
ttn-69
The Norwegian oil industry is not self-sufficient in fuel – news Norway – Overview of news from different parts of the country
