Røkke says the tax system was “created by geniuses” – NRK Norway – Summary of news from different parts of the country

– They were smart enough to provide temporary tax relief for investing in Norway. It will accelerate the transformation of the oil and gas industry into the green part of it.

This is what the businessman Kjell Inge Røkke says at the energy conference of the Pareto Securities brokerage house, and refers to the temporary changes in the taxation of the oil industry that the government, the Labor Party, the Center Party and the Party agreed. del Progreso this spring.

– It will clearly define us as an energy nation in the future, says Røkke.

He is full of praise for the Norwegian oil tax rules:

– When you look at the tax system we have in the oil and gas sector, it was created by geniuses. It has served the nation incredibly well. It developed a world-class oil supplier sector, says Røkke.

Tax breaks were criticized

This spring was dramatic for the oil industry. The price of a barrel of North Sea oil in April was below $ 20 a barrel, the lowest since 2002.

Against this background, the Storting proposed temporary tax cuts to ensure that planned investments could be carried out.

– These are extraordinary times for the world and extraordinary times for us as energy producers, says Røkke at the conference.

Not everyone was positive about the temporary tax cuts this spring. Kari Elisabeth Kaski from SV called it “one of the most short-term decisions I have seen in Norwegian politics in recent years”.

– The parliamentary majority now wants us to pay the oil companies to extract oil, with no guarantees of employment in Norway. Instead, we should pursue an active green industrial policy that ensures jobs and change, Kaski told NRK at the time.

– A created contradiction

At the conference, Røkke tells NRK that there is no contradiction between those who live off oil and those who “fight for a greener world.”

Everyone is part of the problem and everyone is part of the solution, you think.

– I think it is very important that we understand that for those who fight for a greener and better world, it is not a contradiction with what I want or what you want. But we are dependent on fossil fuels, and then we will become less dependent on them, but that is not the opposite. It is a created contradiction, it is not real, he tells NRK.

In August, news came that the Aker Group’s oil suppliers, Aker Kvaerner and Aker Solutions, were to merge. In addition, the newly listed companies Aker Offshore Wind and Aker Carbon Capture parted ways with Aker Solutions.

The two companies will operate on offshore wind and carbon capture and storage, respectively, which were previously part of Aker Solutions’ operations.

– What we learn in the oil and gas segment is what we use to enter the renewable segment, says Røkke.

– The energy market is characterized by deep tensions

The companies are part of Aker Horizons, a green initiative of the Aker Group led by Røkke’s son, Kristian Røkke.

– The current energy market is characterized by deep tensions. On the one hand, the demand for energy is increasing. On the other hand, the world is facing a climate crisis, says Aker CEO Øyvind Eriksen at the conference.

Eriksen says that growing energy demand, green technology innovation and digitization form the backdrop for the establishment of new companies in the Aker Group.

Nordea’s chief analyst Thina Saltvedt tells NRK that green technology has become more competitive in recent years. Among other things, it indicates a cost reduction of 80% in solar energy and 30% to 40% in wind energy.

However, he cautions against the belief that investing in green energy is risk-free.

Warns against rebounding on the “green wave”

– There is no difference between green investments and other investments. You cannot simply say that green is good. It is important to do thorough risk assessments now, so that you do not jump into a wave just because you are green.

– It is not a fact that all green companies will live in five or ten years. It’s not the only factor you need to consider, whether it’s green or not, says Saltvedt.

Pareto boss Christian Jomaas praises Røkke’s temporary engagement.

– It is a very exciting adventure. They have extensive experience, both in offshore wind and carbon capture. Now they stand out and put a special focus on these companies; I think it can be very good, Jomaas tells NRK.

The two companies were listed on the stock exchange in late August, and both Aker Offshore Wind and Aker Carbon Capture are valued at more than NOK 2 billion each.

Billions are invested in green industry

Jomaas points out that the capital market is now “one of the most active we have seen in a long time.” Billions are being invested in green industries such as offshore wind, carbon storage and hydrogen, he says.

– Do companies do it to wash themselves green?

– No, I think they do it because they see a market opportunity. They see that this development of renewables is happening faster than expected and costs are coming down faster than expected. That is why they do it.

– Some believe that some of these companies may appear speculative. That there may be companies that are almost a financial bubbler?

– In an initial development phase, there will always be companies that have problems along the way. I think investors think like this: there are many companies here, we have to spread the risk a little and invest in many companies, then we will see who is the winner in the end.