The CEO of Norway's state-controlled company Equinor said that the company does not have any spare capacity to increase its oil and gas output due to Middle East supply shortages.
"Our focus today is on making sure we are seen as a reliable supplier of oil and natural gas in the markets that we operate in, and ensuring we have the highest possible production because it's needed in these times," Equinor CEO Anders Opedal said at an industry conference held in Oslo.
U.S. and Israeli attacks against Iran, and their retaliatory strikes in the Middle East, have disrupted a fifth of the global oil and liquefied gas supply on the Strait of Hormuz. This is a major chokepoint for Gulf State exports.
Brent crude oil has surged above $100 per barrel, the first time it has done so since 2022. The benchmark European gas prices have risen by 60% since the start of the conflict in February.
Norway's exports increased by almost 10% during the peak of the energy crisis in 2022, thanks to a combination of higher production quotas and adjustments made to maintenance schedules.
Opedal stated that the country's production has been near its maximum capacity and it is not possible to increase output materially at this time.
Norway is Europe's largest supplier of natural gases and a major source for oil, with state-controlled Equinor as the dominant producer.
Equinor does not have any production in the Middle East, but some employees who were evacuated from Dubai.
(source: Reuters)