– We will need 150,000 new man-years. That corresponds to an average of 30,000 employees every year until 2027, says Aker BP CEO Karl Johnny Hersvik. Yggdrasil is the largest development, an extensive field just west of Bergen. Here, 55 wells will be drilled and several platforms will be built. Shipyards in Stord, Egersund, Haugesund, Verdal and Sandnessjøen, together with hundreds of suppliers throughout the country, will contribute to the development. Yggdrasil alone will require 50,000 man-years, and 115 billion in investments. To be completed in 2027. Photo: Aker BP The oil chief is very optimistic about the future. High, stable oil prices and the new, favorable tax conditions that the Storting adopted during the pandemic have made it lucrative to invest in the new fossil fuel industry in Norway. – It is safe to say that the oil tax package from the Storting in 2020 contributed to the investment appetite you see today. Commodity analyst Bjarne Schieldrop predicts a 10-year oil boom – Finansavisen 24 January, 2023 The oil tax package helps to ensure that a large part of the 200 billion Aker BP invests on the shelf is returned from the state. The new fields that are put into operation are expected to extract oil and gas until 2070-2080. Vacuuming the market for green energy, money and people The new oil and gas fields will be operated by electricity from land. “We are among the best in the market when it comes to emissions from production,” says Hersvik. The company does not state how much electricity the fields will need, but it is an extensive project with a large need for energy. Aker BP is launching 11 oil and gas projects on the Norwegian continental shelf over the next 5 years. Aker BP’s Valhall (pictured) is to be further developed. Photo: Håkon Mosvold Larsen / NTB scanpix So the question is, where will the electricity for new oil fields and for the electrification of the rest of society come from? And who will build it out? Nordea analyst Thina Saltvedt is concerned that the green shift will again have to be put on hold. Thina Saltvedt; chief analyst for sustainable investments at Nordea. Photo: Johan B. Sættem – The oil tax package means that many projects are coming into this sector now. This will seize much of both the people and the money that would go to new renewable projects. According to recent figures from Bloomberg, Norway is far behind countries we compare ourselves to such as Sweden, Denmark and Germany. – It is not certain that the need for fossil energy will be as great in 15–20 years. What do we do then if we don’t have other areas that have been under construction in these years we are in now, asks the analyst. China tops the Bloomberg list of countries investing in renewable industry. The USA decided in August 2022 to invest almost NOK 4,000 billion in renewable energy production and green companies. Center party top: green transition will be somewhat more demanding Last year, Conservative Party leader Erna Solberg acknowledged that the oil tax package was too favorable for the oil companies. The Center Party was one of the parties that pushed to give greater tax relief to the oil companies than what the government itself proposed. Now the head of the business committee at the Storting Willfred Nordlund (Sp) admits that the tax package is slowing down a green shift in Norway: Willfred Nordlund (Sp) is head of the business committee at the Storting. Photo: Markus Thonhaugen / news – The oil companies draw a lot of capital, people and engineers. This means that it will be somewhat more demanding to reach the mainland investments in green industry that we want. Norway lacks electricity for everything, including oil installations. This week the Energy Commission came out with its report which showed that Norway will need 60 TWh of more power by 2030. Today we produce probably 150 TWh from hydropower and wind turbines. If we are to manage to procure a new 60 TWh, we must both save more (20 TWh) and increase production significantly (40 TWh). A goal the commission believed would be very difficult. Green shift on oil’s shoulders The Aker-BP boss believes that those he is now hiring for his projects on the continental shelf will be able to produce wind turbines when their oil and gas development is finished in five years: Biggest new investment on the Norwegian continental shelf in the coming years. Karl Johnny Hersvik, CEO of Aker BP. Photo: Ole Andreas Bø / news – I actually think that this is optimal timing. Getting people employed and developing the skills in these companies is incredibly important for entering the renewable industry, which is coming.
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Oil boom in the North Sea in the next few years – news Norway – Overview of news from different parts of the country
