Norway Under Pressure To Ship More Oil, Gas To EU Member States

Norway, one of Europe's richest countries, committed 1.09% of its national income to overseas development — one of the highest percentages worldwide — including more than $200 million in aid to Ukraine, Mark Lewis and Monika Scislowska reported for the Associated Press (AP).

Photo Insert: Norway delivers between 20% and 25% of Europe’s natural gas, as against Russia's 40% before the war.

With oil and gas coffers bulging, some would like to see even more money earmarked to ease the effects of the war — and not skimmed from the funding for agencies that support people elsewhere.

Oil and gas prices were already high amid an energy crunch and have spiked because of the war.

Natural gas is trading at three to four times what it was at the same time last year. International benchmark Brent crude oil burst through $100 a barrel after the invasion three months ago and has rarely dipped below since.

Norwegian energy giant Equinor, which is majority owned by the state, earned four times more in the first quarter compared with the same period last year. The bounty led the government to revise its forecast of income from petroleum activities to 933 billion Norwegian kroner ($97 billion) this year — more than three times what it earned in 2021.

The vast bulk will be funneled into Norway’s massive sovereign wealth fund — the world’s largest — to support the nation when oil runs dry. The government isn't considering diverting it elsewhere.

Norway has “contributed substantial support to Ukraine since the first week of the war, and we are preparing to do more," State Secretary Eivind Vad Petersson said by email. He said the country has sent financial support, weapons, and over 2 billion kroner in humanitarian aid “independently of oil and gas prices.”

The 27-nation European Union is aiming to reduce reliance on Russian natural gas by two-thirds by year's end through conservation, renewable development, and alternative supplies.

Europe is pleading with Norway, along with countries like Qatar and Algeria, for help with the shortfall. Norway delivers between 20% and 25% of Europe’s natural gas, as against Russia's 40% before the war.

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