Reliable supply of energy
Oil and gas production from the Danish part of the North Sea has been developed and expanded continuously since the 1970s. In 1997, Denmark became a net exporter of oil and gas, and has thus been producing more oil and gas than it has used for many years. This has had a major impact on both the Danish economy and supply reliability.
The Danish production of oil and gas means that Denmark and Europe is less dependent than many other countries on the world’s biggest oil and gas-producing nations, and “in-house” production of energy can prove to be a major benefit in geopolitically uncertain times.
According to the Danish Energy Agency, the Danish production of gas is expected to exceed the consumption from 2024 until around 2042. Until the winter season 2023/2024 the redevelopment of Denmark’s largest gas field Tyra is under way, resulting in the temporary shutdown of a large part of the gas production. Denmark has been a net importer of oil since 2018.
Responsible production of the necessary oil and gas
Denmark is well under way with the green transition. Figures from the Danish Energy Agency reveal that in 2020, sustainable sources of energy covered almost 40% of total Danish energy consumption, while oil and gas accounted for almost 50%.
There can be no doubt, however, that the production and consumption of fossil fuels has an impact on our environment and climate, and that the ultimate objective is a fossil-free society. Denmark will nevertheless continue to need a variety of sources of energy during the transition phase, until alternatives to fossil fuels have been developed and rolled out in all areas of society.
Forecasts from the Danish Energy Agency published in 2022 indicate that oil and gas will cover more than 35 % of total Danish energy consumption in 2030. Oil and gas will therefore still be needed for years to come – for transport, heating and as a raw material in the manufacture of products such as medicine, paint and plastics.
In the same way as other industries, the oil and gas sector has a significant contribution to make to the green transition. For example, gas can replace coal and diesel, thus helping cut carbon emissions. At the same time, the oil and gas sector will continue to focus on ensuring that activities linked to production are carried out responsibly, so as to limit the environmental footprint of the production.
Own production of oil and gas in the Danish part of the North Sea will contribute billions of DKK to the Danish state for years to come, and this revenue can be used to help finance the green transition.