Norway’s gas output could be cut by 13%, up to 292,000 barrels of oil equivalent per day, by a planned strike next week, according to the Norwegian Oil and Gas Association (NOG). Crude oil output would also be cut by up to 6.5% of Norway’s total production, or 130,000 barrels per day.
The strike comes just as oil and gas supplies to Europe are particularly tight due to the supply disruptions generated by Russian sanctions. Workers are demanding increased wages to help offset rising inflation.
The Lederne union, composed of roughly 15% of the nations offshore petroleum workers, has already voted against a proposed wage increase that had been negotiated by union leaders and companies. Instead, they have chosen to strike at three offshore oil fields July 5th, and then three more fields the next day until their demands are met. An additional field will have to also shut since its output is processed at one of the other fields at which there will be a strike.
Although talks continue, it is reported that little progress is being made beyond the already agreed upon deal.
A NOG spokesperson has said, “There have been talks, but we don’t see a solution.”
The oil companies have managed to secure a deal with all of Norway’s other oil and gas unions, however, and they have agreed not to strike.