A powerful announcement that sparked tension in the energy markets. Oil industry leaders have warned that Norway could have to reduce its gas exports by nearly 60% this weekend because of a wage strike. The country has been Europe's first choice for gas supply since the collapse of Russian gas supplies after the war in Ukraine.
Norsk Olje states that "Norwegian energy exports account for a quarter of European energy" and Europe is completely dependent on Norwegian supplies at a time when Russian supply cut have made it very tight for gas.
According to the union, the strike, which began Tuesday and has already led to the closure of three small oil-and-gas fields in the North Sea. It would reduce "almost 60%" Norwegian gas exports, and more than 340,000 barrels crude oil, if it continues to threaten to spread conflict. Norsk Olje says that a strike of this scale would cause huge problems to countries who are completely dependent on their gas storages being filled before winter and autumn.
In the face of Europeans' growing demand for Russian gas, the rich Scandinavian nation, which is Europe's second largest natural gas supplier, has tried to produce at its full capacity over the past months. The strike was initiated by the powerful Norwegian union Lederne on Tuesday after wage negotiations failed. Equinor, the nation's largest gas company, has now shut down three offshore fields (Gudrun East, Oseberg East, and Oseberg South). This will have a limited impact on gas exports at the moment.
In the event of an escalation in the strike, four additional deposits would be made, increasing the blockage of exports to 13%. According to Norsk Olje, Saturday's shutdown of large Gullfaks A, C, and Sleipner deposits will increase the impact of the strike by cutting 56% off exports.
