Oil, Gas & Coal Production
Upstream oil and gas production identifies deposits, drills wells, and recovers raw materials. Europe produces approximately 25% of the oil and half of the gas it uses. Most significant offshore resources are in Norway and the UK. Coal production is in long-term decline, with Poland the last significant EU producer.
The Russian gas phase-out is the sector’s most consequential policy development of recent years. The EU is targeting zero Russian pipeline gas and LNG imports by 2027, having successfully diversified toward the US, Qatar, and Norway. This has increased the strategic importance of LNG infrastructure and long-term supply agreements – creating active advocacy work around terminal capacity, interconnectors, and storage regulation.
US tariffs and geopolitical disruption in the Gulf and beyond have created unexpected trade dynamics. Trump’s executive orders promoting US LNG exports to Europe have aligned US commercial interests with EU energy security goals – one of the few areas of transatlantic energy policy convergence. However, US tariffs on steel and aluminium affect the infrastructure costs for pipeline and terminal construction.
Coal remains politically sensitive. Even as mining employment falls rapidly and the EU pursues decarbonisation, coal and lignite have continued to play a balancing role during energy supply disruptions. Poland continues to defend its coal production in EU fora. The Commission’s Affordable Energy Action Plan and the wider AccelerateEU agenda are premised on a managed transition that does not create supply gaps – creating ongoing negotiating leverage for coal and gas producers advocating for realistic transition timelines and bridge fuel provisions.