The strike has already forced the suspension of operations at three oil and gas fields in the North Sea, would cut Norwegian gas exports by “close to 60%” and crude oil production by more than 340,000 barrels if the union carries out its threat to extend the conflict, according to Norsk Olje & Gass.
Oil and gas from Norway, Europe’s second largest energy supplier after Russia, is in high demand as the country is seen as a reliable and predictable supplier, especially now that the Russian gas pipeline North Stream 1 will be closed from July 11 for 10 days.
The wholesale price of gas in United Kingdom for delivery on the day shot up almost 16%, although the price of the Brent Crude fell as fears of a global recession outweighed fears of supply disruption, including the strike in Norway.
“The strike has started,” Audun Ingvartsen, leader of the Lederne union, said in an interview, adding that the protest will intensify to pressure employers to heed demands for salary increases to compensate for the growing inflation.
The Norwegian Ministry of Labor reiterated that it is closely following the conflict. The government can intervene to stop any strike in exceptional circumstances.
Progressive gas cuts
On Tuesday, oil and gas production will be reduced by 89,000 barrels of oil equivalent per day (boepd), of which gas production accounts for 27,500 boed, according to the Norwegian oil and gas company, equinor.
On Wednesday, the strike will increase gas cuts to a total of 292,000 boe/d, or 13% of production, Equinor and the employers’ association said. Norwegian Oil and Gas (NOT, G).
Oil production will be cut by 130,000 barrels a day from Wednesday, they said. That corresponds to about 6.5% of Norwegian output, according to a Reuters calculation.
Lederne represents high-level offshore workers considered critical to operations, and industrial action in one field can have a ripple effect on others pumping oil and gas through the affected field.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
