The Oil Industry and the Transition Towards Renewable Energy Resources the Norwegian Case
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Master’s Degree in Comparative International Relations Final Thesis The Oil Industry and The Transition towards Renewable Energy Resources The Norwegian Case Supervisor Ch. Prof. Stefano Soriani Assistant supervisors Ch. Prof. Jonathon W. Moses Ch. Prof. Antonio Trampus Graduand Miriam Nart 851750 Academic Year 2018 / 2019 TABLE OF CONTENTS EXTENDED ABSTRACT / RIASSUNTO ESTESO ............................................................................... 1 Annotazioni ........................................................................................................................................ 15 INTRODUCTION ........................................................................................................................ 19 Notes .................................................................................................................................................. 28 CHAPTER 1- THE DEVELOPMENT OF THE NORWEGIAN ENERGY INDUSTRY (1950S-2019) .......... 31 Introduction ....................................................................................................................................... 31 1.Timeline: How did the Norwegian Oil Industry Developed? ........................................................ 33 1.1. Norway Before the Discovery of Oil (1900s-1950s) .............................................................. 33 1.2. Norway During the Discovery of Oil (end of 1950s- early 1970s) ......................................... 36 1.3. Norway After the Discovery of Ekofisk (1970s- 2000s) ......................................................... 38 2. Geographical Subdivision of the Main Areas of Interest for the Norwegian Oil Industry ......... 44 2.1. The North Sea ......................................................................................................................... 44 2.2. The City of Stavanger .............................................................................................................. 46 2.3. The Region of Trøndelag ........................................................................................................ 47 2.4. The Arctic Area........................................................................................................................ 49 Conclusion .......................................................................................................................................... 52 Notes .................................................................................................................................................. 56 CHAPTER 2- THE POSITION OF NORWAY IN THE ECONOMIC AND POLITICAL ARENA ................. 61 Introduction ....................................................................................................................................... 61 1. The Norwegian Legal Framework and Administration of the Petroleum Industry .................... 64 1.1. The Share of Power and Responsibilities within the Norwegian Government Bodies.... 69 1.2. The Tripartite Model........................................................................................................... 72 1.3. The Pension Fund ................................................................................................................ 74 2. The Influence of the European Union .......................................................................................... 76 2.1. The Two Referenda ................................................................................................................. 78 2.2. Norway in the European Economic Area ............................................................................... 80 2.3 The Influence of NGOs: Analysis of the Specific Case of Greenpeace VS Equinor (2019)..... 81 Conclusion .......................................................................................................................................... 84 Notes .................................................................................................................................................. 87 CHAPTER 3- THE ARCTIC CASE ................................................................................................... 89 Introduction ....................................................................................................................................... 89 1. Focus on the Arctic ........................................................................................................................ 92 2. Environment Safety and Climate Change ................................................................................. 94 3. The Arctic as Research Areas for New Oil Fields .......................................................................... 99 4. The Influence of Foreign Actors and Policies on the Norwegian Arctic Oil Management ....... 103 4.1. International and National Policies, Treaties and Acts about the Arctic Environment Pollution (Accepted and Ratified by Norway) ............................................................................ 103 4.2. The Role of Eni in the Policy Framework of the Arctic Oil Industry ................................... 107 Conclusion ........................................................................................................................................ 109 Notes ................................................................................................................................................ 111 CHAPTER 4 - THE PATH TOWARDS RENEWABLE RESOURCES ................................................... 113 Introduction ..................................................................................................................................... 113 1. The Latest Developments............................................................................................................ 117 1.1. The Influence of the “Strike for Climate” Movement in Norway ....................................... 117 1.2. June 2019: the Norwegian Labour Party Decides to Increase the Use of Renewable Energy Sources and Limit the Progression of the Oil and Coal Industry................................................ 119 2. How are the Norwegian Government and People Reacting to these Changes? ...................... 121 2.1. The Gap between the Northern and Southern Sides of the Country - the Sámi Case ....... 124 3. Towards Renewable Energy: Research, Plans and Actions in progress .................................... 129 3.1. The promotion of zero emissions vehicles - the case of the city of Trondheim ................ 132 Conclusion ........................................................................................................................................ 134 Notes ................................................................................................................................................ 136 CONCLUSION.......................................................................................................................... 139 REFERENCES ........................................................................................................................... 145 Bibliography ..................................................................................................................................... 145 Online Sources ................................................................................................................................. 147 Acts, Agreements, Laws, Protocols and Treaties ........................................................................... 149 Event ................................................................................................................................................ 151 TABLE OF FIGURES Figure 1. Production from the Ekofisk field................................................................................ 38 Figure 2. Macroeconomic indicators for the petroleum sector, 1971-2020 ................................. 55 Figure 3. The Norwegian State organization of petroleum activities .......................................... 71 Figure 4. The fund's development in NOK ................................................................................. 75 Figure 5. Location map of the exploration plan set by Equinor in the Great Australian Bight ...... 82 Figure 6. Long-term change in summer Arctic air temperatures, as estimated from lake sediments, ice cores and tree rings ('proxy' records) .................................................... 98 Figure 7. Fields and discoveries in the Barents Sea .................................................................. 102 Figure 8. CCS comprises the capture, transport and storage of CO₂-emissions .......................... 131 Figure 9. Market share of Electric Vehicles in Norway .............................................................. 132 EXTENDED ABSTRACT / RIASSUNTO ESTESO “Norway will have to decide the legacy it wishes to bequeath its future generations: Norway the oil power, or Norway the global champion for peace, development and environmental sustainability” (Jonathon Moses & Bjørn Letnes. Managing Resource Abundance and Wealth: The Norwegian Experience. Oxford University Press. 2017: 227) Lo scopo di questa tesi di Laurea è di analizzare il caso della Norvegia come esempio di potenza petrolifera la quale non solo è riuscita a sviluppare un efficiente sistema di management della proprie risorse naturali, ma che, visto l’avanzare dell’emergenza climatica degli ultimi anni,