Dec 07 | 2020
(Europe) Sees Itself as 'Low-carbon Leader'
Denmark said it has strengthened its position as a “low-carbon leader,” by voting to end new oil and gas exploration in the Danish North Sea.
Noting that similar decarbonization efforts planned or in the implementation process by countries such as Ireland, Italy and New Zealand, Denmark believes its vow will encourage other countries to follow, said Daniel Rogers, GlobalData, an oil and gas analyst at data and analytics firm.
“This is the final blow for Danish hydrocarbon exploration which was in need of revival. The last hydrocarbon discovery in Denmark was made over five years ago and since then, little success has been met by the limited drilling activity in the country,” Rogers said. “The Jill-1 well drilled last year by Hess, in the Danish offshore, followed a five-year exploration drilling hiatus, but failed to find commercial hydrocarbons.”
Denmark continues to see investment in the Tyra and Halfdan areas for oil and gas development. However, Covid-19-related delays have been a drag on Danish hydrocarbon production efforts.
UK Response
Denmark’s effort to end oil and gas extraction in the North Sea was seen as raising urgency for the UK and other countries to follow suit. It also calls into debate UK Prime Minister Boris Johnson’s vow that he would cut UK carbon emissions by 68 percent by 2030 – a rate beyond any other major economy could profess. There’s been no announcement that the UK would thwart North Sea exploration, however.
“These plans build on a more regional movement towards lower carbon energy that has been growing across Europe,” Rogers said. “It will be interesting to see if this decision, as well as others made or under review by surrounding countries, will also have an impact on the neighboring UK, which recently announced that it was planning to review its oil and gas licensing round process in the context of achieving net-zero emissions by 2050.”
For Denmark, as domestic gas production has declined and the Tyra hub is offline, imported gas volumes accelerated in 2020. Despite years as a net exporter, Denmark has recently become a net importer of oil and gas.
“These plans build on a more regional movement towards lower carbon energy that has been growing across Europe,” said Ken Penton, UK climate campaigner for Global Witness, an international non-government organization, according to The Guardian. “It will be interesting to see if this decision, as well as others made or under review by surrounding countries, will also have an impact on the neighboring UK, which recently announced that it was planning to review its oil and gas licensing round process in the context of achieving net-zero emissions by 2050,” Penton said.
