EU confirms opposition to new Arctic drilling — OilPrice
The European Union has reaffirmed its opposition to the development of new oil and gas fields in the Arctic. The European Commission’s new Arctic strategy provides for keeping oil, coal and gas reserves in the ground, including in the Arctic region, as well as opposing hydrocarbon projects that could threaten the Arctic ecosystem.
Abandoning an international ban
At the same time, as OilPrice reports, Brussels excluded from the strategy its 2021 commitment to seek an international legal ban on new drilling in the Arctic and to refrain from purchasing hydrocarbons extracted under such projects. An EU representative acknowledged that it has become more difficult to persuade other countries to cooperate on this issue.
The decision comes amid a tense situation on the European energy market. As of October 14, EU gas storage facilities were 74% full, while the five-year average was approximately 86%. Last week, gas prices at the Dutch TTF hub reached €86.03 per megawatt-hour, almost the highest level since December 2022.
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Norway’s position and the gas market
Supplies of liquefied natural gas from the Middle East, according to the publication, remain about 80% lower than a year earlier because of disruptions to shipping through the Strait of Hormuz. Europe has already spent an additional approximately €100 billion on oil and gas this year, according to OilPrice’s estimate.
Norway, Europe’s largest gas supplier, has urged the European Commission to reconsider its approach to Arctic drilling. The country expects gas production to decline in the 2030s unless companies, including Equinor, discover new fields beyond their existing mature assets. At the same time, new Arctic projects cannot solve the supply problem next winter, as exploration, development and infrastructure construction require years.
European Commissioner for Energy Dan Jørgensen also proposed postponing the introduction of methane emissions requirements for imported energy resources in order to ease pressure on the market. However, the EU’s position on new development of Arctic oil and gas resources has not changed, according to OilPrice.
