Denmark has adopted an oil shutdown – E24

The parties behind the so-called North Sea deal agreed to abandon the eighth round of licenses, which would open for continued oil extraction until 2050.

– It fits well with the decision to stop having fossils in 2050, says Danish climate minister Dan Jørgensen (S).

Behind the agreement are the Social Democrats, the Radicals, the Socialist People’s Party, the Liberal Party, the Conservatives and the Danish People’s Party.

Denmark is the largest oil producer in the EU, but ranks 40th internationally.

Low oil prices and lower production

Denmark thus joins the ranks of countries that have said no to new oil permits. These include New Zealand, Costa Rica, Belize, and France, which have all stopped in 2040.

Since extraction began in 1972, the Danish treasury has earned 541 billion Danish crowns from the oil business, but revenues have fallen in recent years.

Partly because of lower oil prices, but also because less oil remains in Danish oil fields.

In 2019, revenue from the oil business was DKK 5.9 billion, according to figures from the Danish Energy Agency.

Follow the green conversion tips

The Tax Ministry has previously considered that new drilling permits in isolation can provide a profit of less than DKK 2 billion.

Denmark’s Climate Council, which is made up of independent experts, believes that the amount may be significantly less and has advised the government to start a green transition.

Jørgensen believes that the oil shutdown will be noticed internationally and that it may therefore send a signal.

– We are the largest oil producer in the EU and will therefore resonate in the world, says the Danish news website DR.

The Danish government is launching a series of initiatives in which they are investigating how they can move jobs from the oil industry to sustainable industries.

The government is currently investing heavily in CO2 storage after the Geus national research center determined that it is possible to store the climate zone in the North Sea.

Climate action in Norway

In Norway, environmental and climate organizations criticize the fact that the government has not stopped exploration activities.

In November, the Supreme Court heard Climate Action, in which Nature and Youth and Greenpeace have sued the state to open up to oil exploration in parts of the Barents Sea.

The parties are awaiting the judgment of the Supreme Court, which will be decisive for the interpretation, among other things, of the environmental section of the Constitution.

– This is an incredibly important signal from another oil-producing country.
everyone else. That it is probably easier for Denmark than for Norway to establish a
end date, really shouldn’t be a sleeping pad for politicians here
at home, says Frode Pleym, leader of Greenpeace Norway.

– Our political leaders must bear in mind that oil extraction will never be
as profitable as before. This is especially true for oil licenses.
that is distributed generously in vulnerable areas, where already now
you risk losing money, says Pleym.

– It is historic that the government of one of our closest neighboring countries now declares that it is no longer appropriate to seek more oil. More and more people see that the search for more oil and gas is incompatible with a responsible climate policy that takes into account the future of children, says the leader of the Une Bastholm party on the MDGs.