Texans helped make Norway one of many world’s wealthiest nations, and now Norwegians can help Texas develop new power assets.
Oil and pure fuel inextricably link Texas and Norway, and the connection proves how worldwide cooperation, free commerce and innovation sharing can enrich everybody concerned.
Norwegians had no experience in oil and natural gas before Phillips Petroleum applied for a license in 1962 to discover Norway’s North Sea continental shelf. The Norwegian parliament did not cross any legal guidelines regulating oil and fuel exploration or declare the ocean’s mineral rights till 1965.
Phillips, Exxon and different companies performed seismic mapping of the Norwegian offshore whereas lawmakers deliberated. Exxon and Phillips noticed sufficient potential to create native subsidiaries and, in 1966, employed Houston-based Baker Hughes and Halliburton to start exploratory drilling.
Exxon, then referred to as Esso, discovered oil in the Balder Field in 1967, however not but sufficient to warrant a business properly. After three years and 29 wells, Phillips found significant oil within the Ekofisk subject in 1969, helping Norway produce its first commercial barrels in 1971.
Norway established a nationwide oil firm, now referred to as Equinor, the next 12 months. Ekofisk continues to be producing 50 years later, and Norway’s 5.5 million residents have the world’s eleventh highest revenue. Norway’s Sovereign Wealth Fund, created from oil taxes, is value $1.2 trillion and not too long ago generated more money from its investments than from the oil fields.
“We grew up with oil in Norway, and of course, it was discovered by someone from Houston,” Norway’s Ambassador to the United States, Anniken Ramberg Krutnes, stated throughout a latest go to. “We have both benefited from that.”
Oil and fuel stay Norway’s largest industrial sector, however the nation exports 90 p.c of what it produces, the International Energy Agency experiences. Norwegians, although, know the oil won’t stream ceaselessly.
Climate change is wreaking havoc. Record-high temperatures in the Arctic Circle are inflicting ecological issues for Norway, whereas polar vortexes are concurrently freezing Texans. The world is targeted on new methods to generate and retailer power with out worsening international warming.
Here is the place the Norwegians can train the Texans a factor or two.
Nearly half of Norway’s energy needs are met with electricity, the very best proportion amongst rich international locations, the IEA says. The nation generates 92 p.c of its electrical energy from hydropower and depends on wind and photo voltaic for the remainder.
Norwegians are shopping for electrical automobiles and switching from fossil fuels to electrical energy quicker than different international locations, rapidly hitting up in opposition to essentially the most difficult industries to decarbonize. But, slightly than giving up, Norway invests in superior renewable power and storage applied sciences.
Long a pacesetter in offshore oil drilling, Equinor helped pioneer wind generators planted within the seabed. In November, Equinor began producing electricity from the world’s largest floating offshore wind project, Hywind Tampen. The generators will present electrical energy to offshore oil and fuel amenities.
The firm has began bringing that expertise to the United States. Last 12 months, it led a consortium that won a lease to build a wind project off New York that may generate 3,300 megawatts. One megawatt can energy 200 properties.
Last month, Equinor received a lease to construct a floating offshore wind undertaking that may generate 2,200 megawatts for California. This 12 months, it’s anticipated to bid on leases in the Gulf of Mexico that will generate electricity for 3 million homes in Texas and Louisiana.
Norwegian companies are also developing exciting technologies to seize and retailer carbon dioxide and generate clear hydrogen, ammonia and solar energy. Texas firms are behind in growing the identical applied sciences, so it makes good sense to crew up with the Norwegians once more.
The greatest impediment is President Joe Biden’s Inflation Reduction Act.
The IRA will not be solely essentially the most vital local weather invoice in U.S. historical past but additionally established a Made-in-USA industrial coverage. The act uses tax credits to encourage domestic production of raw materials and manufacturing, which punishes firms that import elements from abroad or cooperate with overseas companies.
The European Union says $207 billion of the U.S. subsidies doubtlessly violate World Trade Organization guidelines. The EU, South Korea and different clear expertise leaders need exemptions like these for Canada and Mexico underneath the USMCA.
Failing that, the EU may retaliate with Buy European tax legal guidelines that profit native firms whereas punishing American companies. Such commerce obstacles are dangerous for everybody, even when financial retaliation makes politicians and voters really feel vindicated.
The White House ought to grant exemptions to each pleasant nation that trades pretty. When the Norwegians needed to search for oil, they welcomed Texans with experience, and it paid off for everyone.
Chris Tomlinson, named 2021 columnist of the 12 months by the Texas Managing Editors, writes commentary about cash, politics and life in Texas. Sign up for his “Tomlinson’s Take” e-newsletter at HoustonChronicle.com/TomlinsonNewsletter.
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