Page 6 - Danish Offshore Industry 2019

THE ENERGY

AGREEMENT:

ENERGY TRANSITION

SUPPORTED BY OFFSHORE

ACTIVITIES

Denmark is a pioneer in the field of energy. On a contin- There seems to be global consensus that in the near fu-
uous path to an all green future, the offshore sector has ture, the world will need more energy. To meet increased
undergone significant professionalization with major pri- demand, a broad array of energy sources is needed. This
vate players pursuing business opportunities, including is why oil and gas will continue to play a role in the ener-
unprecedented investments in offshore wind. gy mix in years to come. Not only is gas essential in the
energy system when the wind is not blowing and the sun
In June 2018, the Danish government signed a new is not shining. The oil and gas sector has made substan-
energy agreement with unanimous support of all par- tial economic contributions to Danish society since the
ties in the Danish parliament. The Agreement includes 1970s, estimated to around 428 billion DKK, and created
the establishment of three new offshore wind farms thousands of highly specialized jobs.
that will supply at least 2,400 MW of green electricity
to the energy system. The offshore wind farms will be The energy agreement confirms that alongside the ex-
constructed between now and 2030. A variety of factors pansion of green energy, the oil and gas resources in the
will be considered before choosing the location for the Danish North Sea will continue to be exploited. Contin-
offshore wind farms, including cost, the surrounding ued exploitation of oil and gas is not in opposition to the
environment, and seabed conditions. The North Sea is green transition. Investments in oil and gas extraction in
central in the screening that has been carried out to find the North Sea generate revenue for the state and activ-
suitable locations for the first tender. ities that support the Danish economy, thus creating a
basis for investments in the green transition. This is close-
Rapid technological innovations combined with ambi- ly linked to the Oil and Gas Strategy for the North Sea as
tious policy targets in many North Sea countries have well as The North Sea agreement from March 2017 with
spurred a “gold rush” in the offshore wind sector. the Danish Underground Consortium (DUC). According
As part of the new energy agreement, Denmark will to the strategy there is still a significant potential left of
conduct a large-scale screening of Danish waters in the around 3 billion barrels of oil equivalent.
North Sea and Baltic Sea area with the aim to identify
locations for up to 10 GW of offshore wind for future As part of The North Sea agreement from March 2017
offshore wind farm site selection. the Parliament adopted new legislation amending the
Danish Subsoil Act and the Pipeline Act to secure im-
The energy agreement further sets a clear target to de- proved conditions for third-party access to infrastructure
velop the North Sea area into a global offshore wind re- in the Danish North Sea. The amendment came into
gion. Building on a strong foundation within both wind force in January 2018.
power and the offshore sector, Danish companies have
positioned themselves well. And thus, Denmark is situat- Also in June, I had the pleasure of opening the 8
th
ed well to continue to be a front runner in this field. licensing round in the Danish part of the North Sea. The
completion of the 7 licensing round promoted greater
th
The Danish government supports the development of awareness on the frequency of licensing rounds. It was
offshore activities through active participation in North an initiative in the Oil and Gas Strategy that licensing
Seas Energy Cooperation, continued support to off- rounds were to be held more frequently than previously.
shore wind power development and spurring innovation I look forward to seeing the result of the 8 licensing
th
through our ambitious R&D program. This together with round and hope to see high levels of interest in new
the new and ambitious energy agreement shows that licenses.
the prospects are good for a continued growth in the
Danish offshore sector. This past year, the Danish oil and gas sector saw new

4 / WELCOME