Norway: Elections to Solve Lofoten Drilling Conundrum
Norway's parlimentary elections will take place on 9 September 2013. The oil and gas industry will follow the campaign carefully as its interests may be strongly related to the outcome of the polls.
Labour-led coalition is taking a precautionary approach on drilling off the shores of Norway’s Lofoten islands. The Conservative and Progress parties already endorsed the exploration and the production of hydrocarbons near the archipelago well known for its natural beauty. The world’s largest deep-water coral reef is located west of Røst, one of the five municipalities of the archipelago.
According to Bloomberg, Norway’s oil production will fall for a 13th consecutive year in 2013 as a consequence of aging fields in North Sea. The UK is experiencing a similar trend.
“We need to produce more to maintain output. There is enormous value there and it is important to extract it. It is also important for the development of the region,” said to Bloomberg Siri Meling, the Conservative energy spokeswoman.
The Conservative, along with the Progress Party, is expected to win the elections and form a coalition government. The two parties are in favour of hydrocarbon exploration off the shore of Lofoten islands.