IEA chief urges EU to revisit Arctic oil and gas drilling ban

(Bloomberg) – International Energy Agency Executive Director Fatih Birol pressed the European Union to revisit its moratorium on drilling for oil and gas in the Arctic, challenging the bloc’s long-held opposition to new fossil fuel development there.

“I support the Commission to give a very close look at this issue because it is extremely important for the European energy security,” Birol told reporters in Brussels on Thursday evening after a meeting with Norwegian Finance Minister Jens Stoltenberg. “The world needs every drop of oil from Norway.”

Despite never joining the European Union, Norway is pushing the bloc to remove a moratorium on new oil and gas drilling in the Arctic in a policy update that’s expected for this year. The initial ban on new drilling was put in place in 2021.

While the fallout from the Iran war is boosting arguments for European energy independence, critics say loosening drilling rules in the Arctic won’t help in the short-term, while further endangering an already-threatened ecosystem.

This week, six institutional investors joined a call urging the EU to maintain its opposition, saying member states need to continue to commit to their green transition.

Speaking alongside Birol, Stoltenberg reiterated his nation’s position on the EU ending the moratorium. “Of course there are environmental concerns that we have to take into account,” he said. “But to say no, there should be no oil and gas exploration in the Arctic doesn’t make sense for Norway.”