North Sea Oil Giants Choose Norway Over Unpredictable UK Market

Core Viewpoint - The North Sea serves as a contrasting case study for energy transition policies, with Norway promoting exploration and investment while the UK is deterring investors through regulatory uncertainty [1][2]. Group 1: Norway's Approach - Norway is committed to net zero while simultaneously supporting oil and gas exploration, providing long-term regulatory certainty, and benefiting from substantial oil and gas revenues [1][2]. - The Norwegian government is planning its 26th oil and gas licensing round in less-explored areas to counteract an anticipated decline in production starting in the early 2030s [5]. - Companies in Norway can receive refunds of 71.8% on losses related to exploration, which, combined with a stable tax regime since the 1990s, offers long-term certainty for operators [5]. Group 2: UK's Approach - The UK, while also aiming for net zero, has seen a significant shift in its approach, with frequent changes in the tax regime since 2022, leading to unpredictability for investors [6][7]. - The introduction of the Energy Profits Levy (EPL) by the Conservative government in 2022 has resulted in calls from oil and gas companies for a more stable regulatory and tax framework [7]. - The current Labour government's rising taxes and policy changes have further discouraged investment in the UK North Sea, increasing the risk of dependency on oil and gas imports [7].