Kathmandu— Norway will continue developing oil and gas fields in the Arctic, Energy Minister Terje Aasland stated, despite pressure from the European Union to halt drilling in the region. The decision comes as the EU seeks to reduce reliance on fossil fuels and accelerate a green transition, but Norway argues that continued production is vital for both its own interests and those of Europe, particularly given current geopolitical circumstances and energy security concerns. Aasland made his remarks during the opening day of ONS, Norway’s major energy conference in Stavanger.

EU-Norway Energy Relationship

The European Union is seeking to influence Norway's energy policy despite Norway not being an EU member. This push comes after Brussels rejected Russian gas supplies following the conflict in Ukraine, making Norway the bloc’s largest gas supplier, providing roughly 30% of its imports in recent years. The EU aims to keep fossil fuels unextracted in the Arctic region, reduce black carbon emissions, and speed up the transition to green energy sources, citing concerns about the area's rapid warming.

Norway’s Production Goals

Norway intends to maintain current levels of petroleum production and exports until at least 2035. Development in the Barents Sea is considered key to achieving this goal, according to Aasland. Official forecasts indicate a potential sharp decline in output after 2030 if new fields are not developed. In 2025, gas production remained near record highs and oil output reached its highest level since 2009.

Challenging the ‘Green Battery’ Narrative

Aasland challenged the long-held notion of Norway as Europe's “green battery,” emphasizing that Arctic resources must be considered if Norway is to remain a long-term energy supplier. He stated that continued activity in the Barents Sea serves both Norwegian and European interests, given the current geopolitical climate and resource needs. The minister clarified that while Norway will develop these areas, it is up to the EU to decide whether or not to purchase the resulting oil and gas.

Record Revenues and Global Role

Norway ranks among the world’s top 10 gas producers and exporters. Its petroleum revenues have reached record levels due to its increased share of the European gas market and rising oil and gas prices following disruptions in Russian supplies. The country also generates surplus renewable energy through hydropower, which it exports to help stabilize Europe's power grid.

Norway’s commitment to continued Arctic development sets a clear divergence from the EU’s green agenda, potentially creating friction as Europe seeks to reduce its reliance on fossil fuels and transition towards renewable energy sources.

(With inputs from RT)

Originally published on abcnews.com.np.