Oil, Gas & Coal Production
Upstream oil and gas production and operations identify deposits, drill wells, and recover raw materials from underground. They are also often called exploration and production companies. Europe producing 25% of the oil and almost half of the gas it uses. While reliance on imports is likely to remain important, recent domestic exploration & production dynamics suggest high remaining potential for decades to come. Eight of the biggest offshore oil and gas fields in Europe are located in Norway and the other two belong to the UK. Coal production in Europe is in long-term decline, and imports exceed production.
The oil and gas industry has always been heavily impacted by macroeconomic factors, from geopolitical tensions and climate change to government regulations and technological advancements. In the past few years, the industry has undergone a series of unprecedented pressures including tightened greenhouse gas regulations, the Russia-Ukraine War, and ongoing tensions in the Middle East. The EU is phasing out Russian pipeline gas and LNG, aiming for zero imports by 2027. Imports from the U.S., Qatar, and Norway have increased to compensate.
Coal remains a vital, if unloved fuel. In Europe, during a time of unprecedented turmoil in the energy market, coal and lignite replaced lost supplies of Russian pipeline gas. Active coal mining is nearly extinct in the EU, with Poland being the last significant producer. Employment in coal mining is falling rapidly, however, even as it is phased out, coal will continue to be part of the energy mix, both domestically mined coal and lignite and imported coal from the international market.