While the renewable energy sector gains momentum across the world, several nations have stayed the course and invested in new gas and oil projects. One such nation is Norway, which recently saw one of its largest upstream energy companies, Vår Energi, greenlight four projects that have the potential to provide the oil and gas sector with a lifeline in an ever-changing energy market. The company is the last remaining cornerstone of the conventional energy sector in Norway and has plans to approve more projects by the end of the year.
Vår Energi reports that it expects oil and gas demand to stabilize next year
With the unpredictable nature of the global energy market, any new projects that fall under the old-school oil and gas sector require a pragmatic and considered approach. With the wave of new renewable energy projects popping up around the world, Norway has provided some much-needed commitment to the gas and oil sector.
Vår Energi has stated that it expects the market to stabilize over the next year, with prices not dropping below $60 a barrel. That optimistic forecast sheds light on the standing and continued reliance on the traditional gas and oil sectors in Europe.
“We may see a short period of oversupply, but I think when you look into next year, you see that supply-demand balance coming back into line. Oil is going to be required for a long time, and the industry has not been investing enough.” – Vår Energi Chief Executive Officer Nick Walker
Vår Energi has sanctioned four new oil and gas projects this year alone, with more to come by year-end
Despite the overwhelming calls by the global energy community to integrate renewable energy into our lives, oil will remain a cornerstone of the energy market for many years to come. Vår Energi has already commissioned four new gas and oil projects in 2025, and has stated its ambitious plan to develop another six before the year is out.
The company has stated that the four projects that are now in the execution phase this year are: Fram Sor, Balder phase VI, Gudrun low-pressure production, and Snorre gas export.
The company CEO has stated that more projects are entering the final investment phase, and the company hopes to reach a decision by the end of the year. The six new projects that are being planned are:
- Johan Castberg Isflak
- Johan Castberg improved oil recovery
- Mikkel flow conditioning
- Balder Next
- Eldfisk North Extension
- Ekofisk previously producing fields
The company’s management has noted that the plan is to maintain production at between 350,000 boe per day and 400,000 boepd towards the end of the decade. Several upstream companies with operations across the world reported strong performances during the third quarter of the year, which points to the market still relying on the conventional gas and oil sector.
“In terms of our exploration success, we’d always like more. But I think so far it’s a good outcome this year. And we’ve got some exciting wells to come, particularly the wells we’re drilling in the Goliat Ridge.” – Vår Energi Chief Executive Officer Nick Walker
Europe’s reliance on the oil and gas sector has led to a strong performance in Q3 2025
Norway’s proclivity for the oil and gas sector is not a standalone occurrence, as many nations and companies have continued to sustain operations in the sector and have reported significantly strong performances in Q3 2025. With a vast majority of the world’s leaders embracing the renewable energy sector, the conventional energy sector can take solace in the fact that nations like Norway will keep the ball rolling in the oil and gas sector for many years to come. The hope for all is that the global energy sector can coexist with the renewable energy market and diversify its operations.
