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POLITICS

Oil sector faces uncertain future as Norway heads to the polls

Norwegians head to the polls on Monday, in a parliamentary election where the "Red-Green" opposition looks to be ahead, potentially influencing the fate of oil activities in the largest producer in Western Europe.

Oil sector faces uncertain future as Norway heads to the polls
It is widely expected that Erna Solberg will be ousted. Photo by Stortingnet on Flickr.

According to opinion polls, a clear majority is emerging to unseat Prime Minister Erna Solberg’s centre-right government, which has ruled the Nordic country for the last eight years.

The leader of Norway’s Labour Party Jonas Gahr Store, a 61-year-old millionaire who has campaigned against social inequality, seems well placed to succeed her, but the exact shape of the coalition needed to pave his way to office is still unclear.

His party’s preferred allies are the agrarian Centre Party and the Socialist Left Party, but if they are unable to reach a majority on their own they might depend on the support of the Green Party and or the communist Red Party, potentially complicating negotiations.

“I have a good feeling,” Store said as he cast his ballot at a school in Oslo on Sunday, with voting opening a day earlier in the major cities.

As of Friday, more than 1.6 million Norwegians, or 42.3 percent of the electorate, had made use of early voting opportunities.

Overcoming addiction

The August “code red for humanity” report from the Intergovernmental Panel on Climate Change (IPCC) put the issue at the top of the agenda for the election campaign and forced the country to reflect on the oil that has made it immensely rich.

The report energised both those on the left and, to a lesser extent, the right who want to get rid of oil.

The Green Party is leading the charge in calling for an immediate halt to all oil exploration and a 2035 deadline for exploitation.

That ultimatum has been rejected by Store, a minister under Jens Stoltenberg between 2005 and 2013.

Like the Conservative Party, the other dominant political force in the country, the Labour Party has refused a farewell to the black gold.

Instead, they advocate a gradual withdrawal from the oil that has served as a windfall for the country since exploration started in the 1960s.

The oil sector accounts for 14 percent of gross domestic product, as well as 40 percent of its exports and 160,000 direct jobs.

In addition, the cash cow has helped the country of 5.4 million people amass the world’s biggest sovereign wealth fund, today worth more than 12 trillion kroner (almost 1.2 trillion euros, $1.4 trillion).

“The demand for oil is on a downward path. This is happening by itself, by market forces. We don’t need to decree it… but instead build bridges to future activities,” Labour’s energy chief Espen Barth Eide told AFP.

“We will continue to have oil activities but we have to admit that the best oil years are behind us,” he said.

Arctic exploration in question

According to many observers, a compromise will depend on success of the parties with environmentalist leanings and could involve cutting off certain waters for oil exploration, particularly in the Arctic.

“I think a smooth transition is very important to keep the knowledge within the oil industry to make a green shift over to renewable energy,” Fridtjof Elgesem, a 29-year-old Oslo resident, told AFP.

For Camilla Larsson, 33, the next government should limit oil production to meet climate targets.

“It will impact taxes, it will impact the way of living in Norway but I think that is something that has to change in order for us to reach the climate goals,” Larsson said.

“Fortunately, we live in Norway, we are super privileged and when it comes to climate and the way of living we have to give something to achieve what theworld has set to achieve,” she added.

After eight years in power, a record for Norway’s conservatives, and multiple crises including migration, falling oil prices and Covid-19, Solberg is likely to pass the baton.

The 60-year-old is expected to cast her ballot mid-morning in her home town of Bergen.

“We must always govern as if we were to stay in place for eternity and design big projects because that is the job of a Prime Minister,” she told broadcaster NRK on Sunday.

The first preliminary results are expected at 9:00 pm (19:00 GMT).

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POLITICS

Norway’s PM says country is ready to recognise a Palestinian state

Norway is ready to recognise a Palestinian state together with other countries, its prime minister said on Friday while hosting Spanish counterpart Pedro Sanchez, who is seeking support for the cause.

Norway's PM says country is ready to recognise a Palestinian state

Norwegian Prime Minister Jonas Gahr Støre told reporters that such a decision would need to be taken in close coordination with “like-minded countries”.

“Norway stands ready to recognise the state of Palestine,” Støre told a joint press conference with Sanchez.

“We have not set a firm timetable,” Støre added.

In November, Norway’s parliament adopted a government proposal for the country to be prepared to recognise an independent Palestinian state.

Norway also hosted Israeli-Palestinian peace talks at the beginning of the 1990s, which led to the Oslo Accords.

Sanchez is currently on a tour of Poland, Norway and Ireland this week to drum up support for the recognition of a Palestinian state, according to a Spanish government spokesperson.

Speaking alongside Støre, Sanchez said Spain was “committed to recognising Palestine as a state, as soon as possible, when the conditions are appropriate, and in a way that can have the most positive impact to the peace process.”

On March 22nd, Spain issued a statement with Ireland, Malta and Slovenia on the sidelines of an EU leaders summit, saying they were “ready to recognise Palestine” in a move that would happen when “the circumstances are right”.

Last week, Sanchez told reporters travelling with him on his Middle East tour that he hoped it would happen by the end of June.

Støre on Friday said that he welcomed Sanchez’s initiative to consult among countries to “strengthen coordination”.

“We will intensify that coordination in the weeks to come,” Støre said.

The Spanish leader has repeatedly angered Israel with his outspoken comments since the start of the war between Israel and Hamas.

The war in the Gaza Strip erupted after Hamas’s unprecedented attack on southern Israel that resulted in the deaths of 1,170 people, mostly civilians, according to an AFP tally based on official figures.

Israel’s retaliatory offensive has killed at least 33,634 Palestinians, most of them women and children, according to the health ministry in Hamas-run Gaza.

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