Norway wants to transform from an oil exporter into a green energy country. Germany plays an important role in this, says Economics Minister Jan Christian Vestre.
Oslo – Behind stylish designer furniture, the brass letters are emblazoned on the wood-paneled wall: “Nærings- og fiskeridepartementet”. If you translate this literally, it means something like “Ministry of Food and Fisheries”. An indication that Norway's economy has not always been dominated by the oil and gas business. It was only in the 1960s that, thanks to the oil boom, Europe's former poorhouse became one of the richest countries on the continent.
Oil and gas from Norway: The country can afford the energy transition like no other
A country that can financially afford to invest massively in the energy transition like no other. “We have to do it much faster,” says Norway’s Economics Minister Jan Christian Vestre, who invited people to a small meeting at the ministry.
In fact, the country is making big steps. Anyone who strolls through the capital Oslo will eventually forget that there are cars on the streets because they can hardly be heard. Almost everyone drives electric, and the state has been heavily subsidizing the purchase of electric cars for years. And Norway boasts that the share of renewable energy in total electricity production is almost 99 percent. A large part comes from hydropower.
Oil funds in Norway continue to grow
Now the entire economy should be transformed towards sustainability; the Norwegian government has made this one of its core concerns. A real industrial revolution is underway. Paradox: The money for all these efforts still comes from business with extremely environmentally harmful fossil fuels. Since the 1990s, Norway has invested the immense income from oil and gas exports in the so-called oil fund. It has been getting fatter for decades; in the first half of 2023 alone there was an increase of the equivalent of over 130 billion euros. How does that fit together?
Norway's Economics Minister: Without gas from Norway “Europe would have slipped into a crisis”
“Yes, this is a difficult issue in Norway,” admits Vestre. “The energy transition” – and he actually uses the German word while speaking English – “cannot be done overnight,” says the minister. And then he makes an argument that you often hear in Norway. “If Norway had not recently supplied Europe with gas, then the continent would have slipped into a huge crisis.” In fact, Norway reliably stepped in when energy supplies from Russia suddenly stopped in the wake of the Ukraine war - but it turned out well let pay.
But it is now clear: “We are seeing that demand for oil and gas is falling even faster than we thought. And to be honest, that's a good thing, because the business is not sustainable and we have to move away from oil quickly." But: Why is Norway currently planning to develop new oil and gas fields on a large scale? A dilemma, says Vestre: “Germany and Europe will need oil and gas for many years to come. Maybe it's 15 or 20 years. Because we started the transition to renewable energy far too late.”
Before Hannover Messe: “Good conversations with my friend Robert Habeck”
Humanity has had these technologies for decades. In Norway alone: As early as 1911, the country had the largest hydroelectric power plant in the world, the Vermork plant in Telemark. “We should have started the transformation 30 years ago. But we didn’t do it,” says Vestre.
Now Norway wants to advance the energy transition in close cooperation with Germany. “Germany is our closest friend, our most important strategic partner,” emphasizes the minister. He had “good conversations with my colleague and friend Robert Habeck” about this. It is no coincidence that Norway is this year's partner country at the Hannover Messe, one of the most important international industrial trade fairs. The topic of renewable energy will play a central role there this time.