– Now we see a bonanza of applications for new developments. This is exactly as expected. We fear that this will lead to sky-high greenhouse gas emissions in the years to come, and that we will be tied to a fossil fuel economy for many years. That’s what SV’s energy and environmental policy spokesperson Lars Haltbrekken says. – What are the consequences of this for the Norwegian economy? FOSSIL: SV’s Lars Haltbrekken fears the consequences of the massive oil developments. Photo: Kristian Skårdalsmo – We fear the consequence is overheating and that you seize labor that could have been used for, for example, the development of offshore wind, he says. In the spring of 2020, the pandemic hit Norway with full force. The price of oil plummeted, and the industry asked for crisis aid to keep activity up. A package of favorable tax terms was put in place, but the window closes from the new year. A rush of so-called PUDs – plans for development and operation – has therefore been expected before the new year. And now figures from the Norwegian Petroleum Directorate, the Ministry of Petroleum and Energy and WWF Norway show that around 20 PUDs are expected to be submitted by the companies before the end of the year. That is twice as many as in a normal year. And many of them have now arrived just before Christmas – shortly before the crisis package is phased out. – The fact that these projects are coming this year and at the end of the year is probably a result of that. But a great many of these projects would probably have come anyway, says Acting Director Torgeir Stordal of the Norwegian Petroleum Directorate. – Catastrophe The crisis package came into place in the spring of 2020. The plan that the Solberg government put forward did not entail any additional costs for the state. But in the Storting, the opposition, with Ap, Frp and Sp, ensured that the package became more expensive for the community. From the environmental movement, criticism of the package has been harsh: They believe it gives a competitive advantage to the oil industry, at the expense of green industries. Since the state covers much of the costs, the industry can pay more for raw materials and offer higher wages. It contributes to a lack of competent labor in the offshore wind industry and thus delays the green shift. CRITICAL: Secretary General Karoline Andaur in WWF Norway. Photo: Verdens Naturfond / WWF – It is a disaster how the oil tax package has contributed to creating a massive development pressure on the Norwegian continental shelf, says Secretary General Karoline Andaur in WWF Norway. She points out that both the International Energy Agency and the UN state that there is no room for new investments in oil and gas fields if global warming is to be kept below 1.5 degrees. “Don’t need more Christmas presents” Last Friday, Aker BP presented ten plans for new development and operations on the NCS. – Today we are writing history for Norway. Never before have investment decisions been made that add up to NOK 200 billion on the Norwegian continental shelf, said chairman Øyvind Eriksen. Aker BP’s contracts are expected to create more than 150,000 man-years at a number of shipyards and supplier companies along the coast. In addition to the ten PUDs from Aker BP, the authorities received five development plans earlier this year and “expect more development plans before the end of the year”, according to the Norwegian Petroleum Directorate. And despite the criticism: It was an enthusiastic oil and energy minister Terje Lien Aasland (Ap) who attended when Aker BP and the rights holders presented their plans. – Let me put it this way, I don’t need any more Christmas presents this year! said the minister in his post. EXCITED: Oil and Energy Minister Terje Aasland (th) last Friday received a PUD from Lars Høier at Aker BP. Photo: Ole Berg-Rusten / NTB In an interview with news, Aasland wholeheartedly defends the initiative. The oil bonanza is the very basis for future investment in renewables, he believes. – Lars Haltbrekken at your budget partner SV says this will lead to sky-high emissions and bind us to a fossil fuel economy for decades to come? – Then I think he is wrong. This is a good basis for us to be a stable and long-term supplier of energy to a European market that needs it in the future, says Aasland. – You don’t fear a lack of competent labor in, for example, the offshore wind industry? – No I do not think so. I think this is an important basis for that, says Aasland. He points to a time when oil and gas will be phased out and other industries, such as offshore wind, carbon capture and storage and hydrogen, will take over. – This is not either-or, but both-and. Took self-criticism Even though the crisis package that was finally adopted in 2020 was more favorable than what the Solberg government had planned, the Conservative Party joined the majority in the Storting. But Høyre leader Erna Solberg later acknowledged in an interview with news that the package was too favorable. – We have to take this on because Norwegian politics made a mistake, in that they stimulated too hard at the time, because they were afraid of seeing a completely different picture. There was a lot of uncertainty at the time, she said this spring. But today’s oil minister does not agree that the package was too favorable. – No, I would say that it has worked as intended, says Aasland. – It has ensured that we have had projects running and that there has been security for work at a time when there was a risk of large layoffs and downscaling of operations. In total, the oil and gas industry expects investments of NOK 149.7 billion next year. That is 14.4 billion more than in the previous reporting, Statistics Norway announced in November. Wisting postponed Earlier this autumn, the giant Wisting field in the Barents Sea was postponed. The project was destined to become a hot political issue. In the next year’s budget, the oil tax package was made somewhat less favorable. This happened in that the so-called exempt income was reduced by 30 per cent. The exempt income is a special tax deduction on investments that the oil companies benefit from. SV has now settled three budgets with the governing parties, the Labor Party and the Center Party. – Lars Haltbrekken, SV has voted for three budgets where this oil tax package has been included? – We have constantly tried to reduce the oil tax package. Fortunately, we were able to reduce it somewhat the following year. But there is no doubt that it should have been reduced even more. We will continue to fight against many of these oil developments, he says. – How satisfied are you that SV did not manage to scrap the package? – I am satisfied that we were able to stop the 26th licensing round, and that we will also be able to prevent oil drilling in vulnerable sea areas up to the ice edge zone next year.
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Controversial crisis package expires – extreme oil boom before the New Year – news Norway – Overview of news from different parts of the country
