Norway to continue Arctic drilling despite EU moratorium, says energy minister

Norway will continue to develop oil and gas resources in the Barents Sea even if the European Union maintains its moratorium on Arctic drilling, Energy Minister Terje Aasland told Reuters in an interview. Aasland also distanced Norway from its earlier self-description as Europe's 'green battery.'

Following Russia's 2022 invasion of Ukraine, Norway has become Europe's largest supplier of natural gas, meeting around 30% of gas demand in the EU and Britain. Last year, Norwegian gas production neared record levels, and oil output reached a 14-year high. Official forecasts, however, show production declining sharply after 2030 without new discoveries.

"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," Aasland said.

The EU supports a ban on new Arctic drilling on environmental grounds but is reviewing that stance amid energy security concerns. Aasland said it was Norway's sovereign right to develop the region's resources. "If Norway is to remain a long-term supplier of oil and gas to Europe... then the Arctic must be part of that discussion," he added.

Anders Opedal, CEO of Equinor, Norway's largest energy firm, said oil and liquefied natural gas from the Barents Sea could be shipped anywhere in the world if rejected by Europe. "The only thing that will suffer from this is actually European security. We have the flexibility," Opedal told Reuters.

Maintaining output

Aasland said Norway aims to keep production and exports near current levels until at least 2035, with the Barents Sea playing a central role. Norway has argued that the parts of the Barents Sea opened for activity are ice-free and less spill-prone, helping sustain northern jobs and communities. Arctic oil would still reach global markets, while gas could be exported as LNG from Equinor's Melkoeya plant near Hammerfest.

The International Energy Agency's Executive Director, Fatih Birol, has urged the EU to reconsider its opposition to new Arctic projects. Critics counter that such projects would take years to develop and would not help Europe's near-term energy needs.

Meanwhile, Aasland rejected the 'green battery' idea—once used to describe Norway's role as a renewable power exporter. He said deeper integration with Europe's power grid had exposed Norway to price swings, and confirmed no new interconnectors would be built. Instead, he urged European nations to bolster their own stable power supplies, weakened by coal and nuclear plant closures and underinvestment in gas-fired generation.