The UK has signed a “landmark” energy agreement with Norway designed to strengthen energy links between the two countries.
The energy agreement will not only help to improve the UK’s energy security but it’s said it will also create around 1,600 jobs.
Norway provides the UK with 25% of its energy and this agreement will help to secure this supply for years to come. However, there are concerns among some commentators that much of Norway’s energy comes from fossil fuels. Norway is the third largest oil exporter in the world and the sixth largest producer of natural gas.
However, the energy agreement will also mean more investment in sources of renewable energy, something Norwegian companies have already done. The agreement will encourage new technologies such as carbon capture and storage as well as creating a joint advisory group to enable companies to talk to the two governments more easily.
Jobs will be created in Chiswick, London, when a new engineering hub is established by Aker Solutions.
As demand for energy increase and business energy prices increase it’s important to secure energy supplies for the future.
The Prime Minister, David Cameron, said of the agreement “There is no stronger energy partnership than between Britain and Norway. In the past five years, British companies have invested more than £13bn in Norwegian oil and gas”.
He continued “In turn, Norway is meeting over a quarter of the UK’s entire energy needs. And Norwegian companies are major investors right across our energy sector – of course in our pioneering oil and gas industry but also in Dogger Bank … and in crucial projects to connect up our electricity grids and so improve energy security and affordability for both our countries”.
He added “This will mean more collaboration on affordable long-term gas supply, more reciprocal investment in oil and gas and renewables, and – underpinning all of this – a set of major new business deals creating thousands of new jobs and adding billions to our economies”.