Norwegian oil and gas industry faces strike threat: Impact on production uncertain

Some employees in Norway’s oil and gas industry will go on strike on Friday if government-mediated wage talks fail. Reuters reported this today, citing statements from the unions. It is not yet clear, however, whether the strike would affect oil and gas production. Norway is Europe’s largest gas producer, meeting roughly a third of demand. Norwegian crude supplies account for around 15 percent of Europe’s oil consumption.

According to the unions, more than 600 workers in the offshore oil and gas sector are expected to join the first wave of strikes. More than 8,000 people work in the sector overall. Wage negotiations between Norwegian oil and gas companies and three trade unions cover nearly all workers at Norway’s offshore oil and gas facilities.

Norway produces more than four million barrels of oil equivalent per day. This volume is divided almost equally between oil and natural gas. Any potential drop in production could affect markets for these commodities at a time when oil and gas supplies from the Middle East are limited as a result of the war with Iran.