Oil Strike in Norway Threatens Brent Oil Prices
Oil workers in Norway have launched a strike closing down gas and oil production at 2 North Sea oil fields — part of the Brent Group. Union and industry negotiations collapsed Saturday night.
700 oil workers are striking of the nation’s 7,000 workers. The oil workers have been fighting for better pensions, as the union seeks to lower the retirement age and get better overtime wages.
The strike will result in a shut-down of the Heidrun and Oseberg oil fields, both run by Statoil. Larger disruptions in Norway are seen as unlikely as the government can force an agreement through — and will likely do so to protect the industry.
Norway is the 8th largest oil exporter in the world, and oil revenues make up 1/5th of the country’s total production.
The Heidrun and Oseberg oil fields produce 150,000 barrels per day of Brent oil — 9% of Norway’s total.
BP’s Skarv oil field will also be affected, however it has not started production yet, and will have its completion delayed.
These oil rigs are part of the Brent Group, and their shut-down will have an impact on the price of Brent oil as supplied will decrease.
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