Europe To Keep Arctic Ban on Oil & Gas Drilling

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

Europe is rejecting pressure from Norway to permit oil and gas drilling in the Arctic, but Norway is planning to forge ahead regardless.

The European Commission (EC) will hold firm on its stance against drilling for oil and gas in the Arctic Ocean despite pressure from Norway and the International Energy Agency (IEA). 

Arctic Moratorium to Stay

The Commission is expected to reveal its updated Arctic strategy on October 20 and is expected to stand by its 2021 position against Arctic oil and gas drilling, mainly in the northern Barents Sea, on climate grounds. Norway is now the largest supplier of oil and gas to the European Union (EU) following sanctions against Russia, but it is not a member of the EU. It has been vocal about its intentions to explore in the northern Barents Sea, which forms part of the Norwegian Shelf, and is estimated to hold most of the country's untapped resources. Today, the country's own domestic policy restricts it to drilling in the southern Barents Sea, but the government is pushing for change. According to Industrial Info Resources data, there are 33 Barents Sea projects in Norway worth almost US$3 billion in investment. 

Stance and Reaction

"Moving forward, our approach on the moratorium will remain unchanged: Our policies have objectives to address climate change and environmental degradation and support sustainable economic development," a Commission spokesperson told Euronews. The position comes as both Norway and the International Energy Agency (IEA) have called on the Commission to change its stance on the non-binding political stance for the sake of energy security. Following the spokesperson's statement, Norwegian Energy Minister Terje Aasland told AFP:  "Norway decides on its resources, not the EU. Without Norwegian deliveries, the energy situation in Europe would be far more difficult. Norway is a stable and reliable supplier of oil and gas, and this also applies to our production in the Barents Sea."

Speaking to Reuters in late August, Aasland reinforced Norway's intentions to keep drilling in the Barents Sea. "In today's geopolitical and security environment, and given the resource situation, I believe continued activity in the Barents Sea serves both Norwegian and European interests. If Norway is to remain a long-term supplier of oil and gas to Europe..., then the Arctic must be part of that discussion. We would develop these areas, and then it would be ‌up to the EU whether they should have a moratorium on buying that gas or oil."

IEA Calls for a Change

Calls for the EC to reconsider its moratorium have also been voiced by the head of the IEA, Fatih Birol. "I support the Commission to give a very close look at this issue, because it is extremely important for European energy security. The world needs every drop of oil from Norway," he added, while calling Norway a trusted supplier that "will not use energy as a weapon". 

Norway's Vital Energy Role in Europe

Since Russia's invasion of Ukraine in 2022 and the resulting EU sanctions against it, Norway has shifted from being an important gas supplier to becoming Europe's single largest source of pipeline gas - filling much of the gap left by declining Russian imports. Norwegian gas exports to Europe grew from 79.5 billion cubic meters (Bcm) in 2021 to 89.3 bcm in 2025, making it the EU's top gas supplier in 2025, providing almost a third of all gas imports. On the flipside, Russian pipeline gas imports to the EU collapsed from over 150 Bcm in 2021 to just 36 Bcm in 2025. This meant Russia's share of EU pipeline gas imports fell from roughly 40% in 2021 to roughly 6% in 2025. 

Key Takeaways

• The European Commission (EC) will hold firm on its stance against drilling for oil and gas in the Arctic Ocean.
• Norway will forge ahead with northern Barents Sea projects regardless.
• Industrial Info Resources is tracking 33 Barents Sea projects in Norway worth almost US$3 billion in investment. 

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).