Oil industry must expect more oil field closures

Minister of Petroleum and Energy Tord Lien ( Progress Party )Minister of Petroleum and Energy Tord Lien ( Progress Party )Photo: government.no

Stricter global climate change could accelerate the closure of the Norwegian oilfield, confirmed Petroleum and Energy minister Tord Lien.

He believes that climate policy is primarily about changing the way markets work. The changes may also have consequences for Norwegian oil production.

– The Paris Agreement dictates that we must prepare ourselves for more stringent and expensive mitigation.

It will affect the profitability of both the use and production of energy, said the minister to news agency NTB.

According to the minister the Norwegian oil and gas industry is well prepared for tightening. Nevertheless, these changes will shorten the period that Norwegian oilfields are profitable and viable.

– I can not rule out that some fields may be closed earlier as a result of increasingly stringent global climate policies, said the Minister.


Source: NTB scanpix / Norway Today