Norway's Gas Production Revival: A Shift Away from Climate Goals

Europe's focus on energy security has led to renewed interest in ramping up gas production on Norway's continental shelf. The country, which is outside of the European Union, supplied nearly a third of the bloc's gas and 14 percent of its crude oil last year.

Kårstø, a giant processing plant along the Norwegian coast, is at the center of this shift. It's the largest gas processing facility in Europe, and roughly a quarter of Norway's gas production passes through it before being shipped to Belgium, France, and Germany via pipelines.

Equinor, which runs Kårstø and is Norway's top oil and gas producer, has dropped its renewable energy target to focus on the Norwegian continental shelf. CEO Anders Opedal said that the company's new 15-year gas supply contract with German utility Uniper will contribute to energy security for Europe.

However, industry executives and political leaders in Oslo acknowledge that more investment is needed to stave off production declines, which are expected to fall by a third by 2050. The Norwegian Offshore Directorate estimates that production could decline by over half in the best-case scenario.