Europe’s Arctic Oil Dilemma Deepens as Supply Fears Grow

A dozen financial institutions from Scandinavia have urged the European Commission to remain firm in its opposition to Arctic oil drilling even as the bloc faces physical oil shortages in weeks, according to energy experts.

“The Arctic is one of the planet’s most vulnerable ecosystems and home to unique wildlife …. Further oil and gas expansion would add pressure to these globally significant ecosystems, by increasing the risk of oil spills and leakages,” the lenders said in a letter organized by the Nordic Center for Sustainable Finance and sent to the Commission today.

The letter features more than 130 signatories from the financial and energy industries, trade unions, and individuals, including Germany’s former economy minister, now senior Arctic analyst at a Danish research facility.

“Further oil and gas expansion would add pressure to these globally significant ecosystems by increasing the risk of oil spills and leakages, which could cause irreversible environmental damage, while increased shipping, noise, and physical disturbance would further intensify the environmental stress on the region,” the letter also said.

The European Union has increased its imports of U.S. crude oil significantly lately to replace lost Middle Eastern supply, but, as Carlyle Group’s Jeff Currie recently warned, the U.S. oil, coming from inventories, will run out sooner rather than later, leaving the EU scrambling for supply. The EU has banned imports of Russian crude.

Norway, which is not a member of the EU, is campaigning for a change in attitude about Arctic oil drilling as it faces a decline in oil production due to natural depletion at its North Sea fields. The Nordic country is the biggest local supplier of the EU with oil and gas, as the UK decimates its oil and gas industry in favor of a transition to alternative energy and electrification.

By Irina Slav for Oilprice.com

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