Launched on Tuesday July 5, the strike movement, already paralyzing several oil and gas fields in the North Sea, could have consequences “very destructive and serious for Europe and Norway” if it extends. The warning comes from the employers’ organization, Norsk Olje & Gass, which recalls that the Scandinavian kingdom, Europe’s second largest supplier of natural gas, covers a quarter of the energy consumption of the Old Continent. This one “depends entirely” Norwegian deliveries, “at a time when supply disruptions by Russia have led to a very tight market for natural gas.”
On Tuesday, the giant Equinor, 67% owned by the Norwegian state, had to stop production on three fields, following the work stoppage of 74 executives. Their union, Lederne, is calling for higher wages to maintain the purchasing power of its members in the face of inflation, which reached 5.7% in May in the country. A first strike had been narrowly avoided at the beginning of June, with the signing of an agreement between employers and several unions, providing for a revaluation of 4 to 4.5% of income in the offshore industry.
But on June 30, the members of Lederne rejected it with 67% of the vote and filed a strike notice. Initially affecting only 1% of Norwegian gas exports, the movement was to go up a notch on Wednesday with the suspension of production on four additional fields, which cover 13% of hydrocarbon exports.
Gas prices have jumped
The worst, however, is yet to come. If no agreement is reached by then, three other fields will be affected by the strike on Saturday July 9, causing a chain reaction and leading to the paralysis of a large part of Norwegian production. According to Norsk Olje & Gass, 56% of gas exports will then be suspended, which represents a daily shortfall of 1.826 billion crowns (176 million euros).
But the note is likely to be even more salty for the European countries. On Tuesday, gas prices jumped 16% to their highest level since March. Employers denounce a strike « irresponsible » et “very damaging to the reputation of Norway and the industry as a reliable and stable supplier of natural gas”.
In March, after the start of the invasion of Ukraine, Oslo promised to do everything possible to reduce European dependence on Russian fuels. A task that promises to be difficult, while its deposits are producing at maximum.
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