Record of Oil and Gas Export Revenue in 2021! How else can they fund large subsidized EVs? – Is it good?
Guest “Irony Can Be Ironic” by David Middleton
Norway announces record oil and gas revenue for 2021
January 14, 2022 by David NikelHome page » News from Norway »Norway announces record oil and gas revenue for 2021
Despite the climate crisis, Norway’s love of oil seems to continue. Never before has the country got such high revenue from the oil and gas industry.
The Norwegian Petroleum Directorate says 2021 is a “great year” for oil and gas in Norway. Oil and gas production remains high as both demand and prices increase.
The news was announced by Ingrid Sølvberg of the Norwegian Petroleum Directorate at their annual resort presentation. As pointed out by our friends at Parents’ Observer“She didn’t mention the word ‘climate’ even once.”
This is the latest chapter in Norway’s very clear conflict between its desire to be a leadership in green change while remaining one of the world’s largest oil and gas producers.
Number of Norwegian oil and gas industries
In the final quarter of 2021, Norway’s oil and gas exports totaled more than NOK 100 billion ($11.5 billion) per month. This figure is almost three times that of the same period last year.
Oil production in 2021 will increase to 102 million standard cubic meters and natural gas to 113 billion cubic meters. Norway has now extract about half of all existing oil and gas resources on the Norwegian continental shelf.
[…]
Irony number 1
Despite reaching US$11.5 billion/month in oil and gas export sales, Norwegians pay more for petrol than most other countries on Earth.
Irony #2
Due in part to soaring gas prices, electric car sales are booming in Norway, especially Teslas made in China.
January 3, 2022 09:53 am
Electric vehicle sales grew 48% in Norway last year, led by Tesla
Electric cars account for nearly two-thirds of the total registrations
Reuters
OSLO – Sales of electric cars in Norway grew 48% last year, ensuring that nearly two in three new cars run on batteries and making Tesla the best-selling brand.
Aiming to be the first country to end the sale of petrol and diesel cars by 2025, Norway produces duty-free oil for vehicles with internal combustion engines.
Tesla has a 11.5% share of the overall car market, becoming the number one brand for the whole year for the first time ever, ahead of Volkswagen with 9.4%.
American automaker on Sunday record quarterly delivery report far exceeded Wall Street estimates, addressing a global chip shortage as it ramps up production in China.
[…]
Norway compensates for exorbitant gas prices by massively subsidizing electric car purchases.
Norwegian EV offers:
* No purchase/import tax (1990-)
* Exemption of 25% VAT on purchases (2001-)
* No annual sugar tax (1996-2021). Tax reduction from 2021. Full tax from 2022.
* No road or ferry tolls (1997-2017).
* Up to 50% of total ferry ticket for tram (2018-)
* Up to 50% of total road tolls (2019)
* Free parking in the city (1999-2017)
* Electric vehicle parking fees have been applied locally with an upper limit of up to 50% of full price (2018-)
* Access to bus lanes (2005-).
* New regulations allow local governments to limit access to only trams carrying one or more passengers (2016)
* 50% reduction of corporate vehicle tax (2000-2018). Reduce corporate auto tax to 40% (2018-) and 20% from 2022.
* 25% VAT exemption when renting (2015)
* Financial compensation for phasing out fossil trucks when converting to zero-emissions trucks (2018)
[…]
The progressive tax system makes most EVs cheaper to buy than a similar petrol model, even if the import price of electric vehicles is much higher. This is the main reason why the Norwegian electric vehicle market is so successful compared to any other country.
Irony #3
Norway’s electric vehicle subsidies are funded from oil and gas export revenues and aren’t even close to being “carbon neutral”.
Norway an EV model? Their path is expensive and at the expense of oil and gas exports
June 4, 2021 by Schalk Cloete
Norway is an EV leader thanks to a many tax incentives. Today, battery-powered cars account for more than half of all new car sales in Norway. Schalk Cloete receive a detailed look at the cost of those incentives and how many tons of CO2 they avoid. Briefly, Norway – a major oil and gas exporter – needs to sell more than 100 barrels of oil (which emits 40 tons of CO2) to pay for the tax breaks it offers electric vehicles to avoid a tonne of CO2.. And Norway’s electricity is almost completely clean thanks to hydroelectricity, so the cost of avoiding CO2 will be higher than in other countries. In other words, most countries cannot take this path to EV dominance. It’s very expensive, and paying for it – certainly in the case of Norway – releases huge amounts of carbon. Cloete is therefore very Criticizes some of the hype surrounding the EV . goals. He wants to see the emphasis shift behavior change reduces car use. And instead of being an EV leader, Norway should be considered a leader in turning oil and gas into a low-carbon fuel.
I love living in Norway. It’s a beautiful country with nothing but the weather to complain about. But this Nordic dream comes with a sizable oil stain; a platform built on 50 years of lucrative hydrocarbon exports.
Are from official data, I estimate that Norway sold fossil fuels amounting to about 44 billion barrels of oil equivalent – a CO2 heritage in the vicinity of 15 gigatons. Norway’s cost of production is low attractive, so we can reasonably assume a profit of $23/barrel to hit the low 1 trillion dollars in hydrocarbon profits accumulated in history (resource rental, to be more precise).
[…]
HAVE2 costs avoided
The best thing about BEV in Norway is electricity is almost entirely from clean hydroelectricity. This means that BEV emissions compared to conventional cars only come from battery production.
… Paid by the sale of barrels of oil
[See graph below]
From the chart above, BEV like ID4 with 80 kWh battery will avoid about 15 tons of CO2 compared to HEV when current does not emit CO2 (no well-to-tank fuel cycle emissions for BEVs). Relative to one PHEV, about 6 tons of CO . saved2.
Therefore, on the whole, CO2 the cost of avoiding inciting people to buy ID4 in Norway is $36,500 / 15 = $2,400/mt versus RAV4 and $23,300/6 = $3,900/mt vs RAV4 Prime.
In view, each barrel of oil that Norway sells to finance these massive tax breaks emits about 0.43 tonnes of CO2.2 when using. Generates the $2,400 needed to avoid a ton of CO2 with ID4 at a previously assumed resource lease of $23/barrel, asking to sell 104 barrels (45 tonnes of CO2). Regarding RAV4 Prime, it refers to 73 tons of CO . oil2 per ton of CO2 avoid. These numbers reveal Norway’s BEV revolution is more than just an aid to a 50-year oil legacy.
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Schalk Cloete is an EV fan, he’s a “research scientist dedicated to sustainable development“And he supports the decarbonization of Norway’s oil and gas exports. I have not checked his number (nor do I have time to do so); but they don’t seem unreasonable. If he’s right, Norway’s EV subsidy leads to an export of 45 to 73 tonnes of CO2 emissions for every 1 ton of avoided domestic emissions.
This works for Norway. They have plentiful cheap (0.14 USD / kWh) electricity due to their hydroelectric resources and world-class infrastructure. They have world class oil & gas resources; which they exploit effectively. They have a relatively small population. They can afford to do this for years to come.
Is natural gas petroleum? Generally not, although it is often associated with petroleum.
Petroleum is defined as:
A widely defined class of liquid hydrocarbon mixtures. Includes crude oil, rental condensate, unfinished oil, refined products obtained from crude oil processing, and natural gas plant fluids. Note: The mass of petroleum products includes non-hydrocarbon compounds, such as additives and detergents, after they have been mixed into the product.
I will annotate the chart as “Actual and Projected Oil and Gas Sales 1971-2022.”
Norway exporting 45 to 73 tons of CO is hypocritical2 emissions per 1 ton of household emissions can be avoided? Is not. It’s just good business – for Norway. This model won’t work well for the rest of the European EV Band.
It’s ironic, isn’t it? Fracking A it is!
Irony can be so ironic!
Is it funny that climate warnings and social justice warriors are stupid enough to think Norway is saving the planet? That’s right!
Larry the Cable Guy would say:
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