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 falling, and imports exceed production.
The war in Ukraine has changed everything as Fuzzy Bitar, Chair of the International Association of Oil & Gas Producers recently said at the AGM: “Just look at where Europe is today – oil and gas make up more than half of Europe’s energy supply. Russia accounts for a quarter of Europe’s gas, or more. And Europe has accounted for around half of Russia’s oil exports.So the invasion of Ukraine – doesn’t so much upset the cart – it demolishes it.”
Last year on Best in Brussels we wrote “The coal lobby used to be a Brussels power player. No more.” but given the rapidly evolving situation it is too early to write off carbon in the sequel to The European Coal and Steel Community.