Page 4 - EurOil Week 49

EurOil COMMENTARY EurOil

Denmark bans new oil

and gas exploration

Denmark has been exploring the North Sea for fossil fuels since the 1970s

DENMARK DENMARK will end all new oil and gas explora- producer and this decision will therefore reso-
tion in North Sea under an agreement between nate around the world,” Danish Energy and Cli-
WHAT: parliament and the government, as part of a mate Minister Dan Jorgensen said. “We are now
Denmark’s government broader plan to phase out fossil fuel production putting a final end to the fossil era.”
and parliament have by 2050. The government has also cancelled a There was mounting speculation that the
agreed to end offshore oil latest offshore licensing round. government would scrap its latest North Sea
and gas licensing. Denmark began exploring for fossil fuels in acreage offering, awards for which were expected
the early 1970s and revenues from oil and gas in the summer but never materialised. The
WHY: production in the ensuing decades helped make round attracted bids from France’s Total, Swe-
Politicians say continued the country one of Europe’s richest nations. den’s Lundin Petroleum, Hungary’s MOL and
fossil fuel exploration is But over the last decade Denmark has shifted the UK’s Ardent Oil. But all of the companies
incompatible with the its attention to clean energy including offshore later withdrew their offers save for Ardent.
country’s climate goals. wind power. Many farms have been developed Many in Danish politics have argued that
by the country’s former state oil company Dong continued oil and gas exploration is incompat-
WHAT NEXT: Energy, which has rebranded itself as Orsted. ible with the country’s climate goals, which are
The eventual aim is Today, Denmark is still the biggest oil pro- among the most ambitious in the world.
to cease oil and gas ducer in the EU, although its 100,000 barrels By 2050, Jorgensen said, “the oil and gas
production by 2050. per day (bpd) of supply falls far short of that of valves will be turned off for good, in line with
Norway and the UK. The country’s existing oil our commitment to climate neutrality stipu-
and gas platforms, stationed at 20 fields, will be lated by the Danish Climate Act.” But the min-
allowed to continue extracting fossil fuels. But no ister said it would be a “just transition” that takes
new licensing rounds will be held. into account “the very real concerns of workers
“We’re the European Union’s biggest oil employed in the fossil fuel sector.”

P4 www. NEWSBASE .com Week 49 10•December•2020