Norway must prepare for faster drop in oil demand on road to 2050 – IEA

By Nora Buli
OSLO (Reuters) – Norway should do extra to arrange for a decline in its dominant oil and gasoline business within the coming many years as different nations begin to free themselves from petroleum dependence, the Worldwide Power Company (IEA) says in a brand new report.
Western Europe’s largest oil and gasoline producer pumps greater than 4 million barrels of oil equal per day however long run its output is about to say no because the Norwegian continental shelf is taken into account a mature petroleum basin and as international demand shifts away from fossil fuels.
“Wanting past 2025, the extent of future funding in Norway’s oil fields stays unsure,” the Paris-based IEA mentioned in a report on Norway’s power coverage, printed on Wednesday.
The company mentioned resource-rich Norway is “uniquely properly positioned for the power transition”, however appreciable work stays to satisfy its formidable targets to scale back greenhouse gasoline emissions by 90-95% from 1990 ranges by 2050.
Renewables account for 98% of Norway’s energy technology and at 50% of whole remaining consumption, the nation boasts the very best electrification share amongst IEA member nations, that means lots of the simple wins for lowering emissions are already achieved.
“The remaining reductions might be extra complicated, difficult and dear, notably in transport and business,” the IEA mentioned.
The company really helpful Norway ought to jump-start clear applied sciences similar to hydrogen, inexperienced delivery, carbon seize and storage and offshore wind, with the IEA urging the immediate adoption of a regulatory framework for the latter.
Final 12 months, the IEA successfully known as on international buyers to cease funding new fossil gas initiatives, a transfer which additionally raised public debate in Norway, the place oil and gasoline is about to generate round 28% of gross home product this 12 months and greater than 40% of presidency revenue.
Though Norway is assured its oil and gasoline can compete in a declining market, it ought to nonetheless plan for a state of affairs by which demand falls sooner than anticipated on account of many nations setting targets of web zero emissions by 2050, the IEA mentioned.
(Reporting by Nora Buli in Oslo; Modifying by Susan Fenton)