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10 The methods to be used: PEST Analysis

10.3 Political Analysis

10.3.2 Political parties in Norway

10.3.2.3 Progress party (FrP)

27 seats (Valg, 2018) – Liberalism (Fremskrittspartiet, 2017)

According to the Progress Party’s program (2017), Prinsipp- og handlingsprogram 2017-2021, stated that they want to promote and increase the use of natural gas domestically for both value creation, household and transportation. They believe that the natural gas such as LNG and LPG, liquid natural gas and liquified petroleum gas, should not be included to the Norway’s special requirements for CO2 cleansing. (Fremskrittspartiet, 2017) The Progress Party (2017) continued that petroleum business in Norway is the largest and the most important industry for Norway, which creates many employments and well-paid jobs; thus, retaining their competitiveness is crucial for the country. They pointed out that exploring and developing the oil and gas field on the Norwegian Continental Shelf can be costly and

complex; therefore, the stable and predictable framework is the key for petroleum industry.

(Fremskrittspartiet, 2017) The Progress Party (2017) emphasized that they will support petroleum industry to maintain its competitiveness technologically and economically. The party also supports to assess the oil and gas developments in Northern Norway such as Nordland VI, VII, Troms II and the Barents Sea North as soon as they can.

(Fremskrittspartiet, 2017)The Progress Party (2017) stated that they want to facilitate small scale wind power while deployment mini or micro wind power should be determined by local municipalities. In the party’s program (2017), they highlighted that alternative energy needs to distribute the power at low price and the state or local authority should not be able to force the established building to connect the alternative energy if the cost of it is more than normal cost. Progress Party held the national meeting in May 2019 and made the statement that they want to stop further development of wind power onshore in the party’s resolution due to its environmental impact on nature. (Fremskrittspartiet, 2019) Although the party does not support further development of onshore wind power, they continue supporting offshore wind power. (Hovland, Forslag til helgens landsmøte i Frp: Vil stanse vindkraft på land, 2019) The Progress Party stated that the party wants to have comprehensive strategy for the research, the development of technology and use of hydrogen as an energy carrier. (Fremskrittspartiet, n.d.)

According to party’s program, the party’s primary focus seems oil and gas since the importance of oil and gas for the country was discussed over 9 pages in 120-page program while wind power was discussed in 2 sentences, and hydrogen was not even mentioned in the program. (Fremskrittspartiet, 2017) As the party stated that they are against further onshore wind power but supportive of offshore wind power in their national meeting in 2019, it

indicates that the importance of offshore wind may have increased within the party after 2017, when the program was published. Hydrogen, on the other hand, was barely mentioned in the party’s website under climate and environment section, and such fact indicates that the party may believe that the hydrogen is relatively less important. The party clearly stated that they support the increase of the use of natural gas domestically and for household.

Respondent: Liv Lønnum – Political advisor (Energy and Environment) of Progress Party’s Parliament team

1. Oil and gas extraction

a) Is the party for or against to existing oil and gas extraction in Norway?

Answer: 1) Very supportive

b) Is the party for or against to explore and develop new oil and gas fields in Norway?

Answer: 1) Very supportive

c) How soon should Norway leave the oil and gas extraction fully?

Answer: 5) Never

2. Renewable energy

a) Is the party for or against to expand renewable energy in Norway besides existing hydro power?

Answer: 2) Supportive

b) Is the party for or against to offshore wind power or wind farm on Norwegian Continental Shelf?

Answer: 2) Supportive

Answer: 2) Supportive

3. Green offshore fields

a) Is the party for or against to the electrification of offshore fields by connecting to shore power (renewable sources)?

Answer: 2) Supportive

b) Is the party for or against to the electrification of offshore fields by offshore wind power?

Answer: 2) Supportive

c) Does party believe that energy storage solution is essential to achieve green offshore fields?

Answer: No answers

d) Technologically, it is possible that *electrolyzer can be built in the windmills. Any excessed hydrogen can be blended into natural gas which makes natural gas greener.

*Electrolyzer splits water into hydrogen and oxygen with electricity.

Does party support to convert offshore windmills to hydrogen wind turbines?

Answer: 2) Yes, some windmills can generate hydrogen as energy storage

e) How soon should all offshore fields be electrified with renewable energy?

Answer: 5) Not needed

4. Finance

a) Does the party consider the offshore wind power as Norway’s future export item?

Answer: 1) Yes

b) Is the party willing to support financially (including tax incentives) to the expansion of renewable energy in Norway? If yes, in what extent?

Answer: 4) Yes – Not sure

c) Is the party willing to support financially (Including tax incentives) to the full electrification of offshore field? If yes, in what extent?

Answer: 5) No

d) Is the party willing to support financially (Including tax incentives) to the offshore wind? If yes, in what extent?

Answer: 4) Yes – Not sure

e) Is the party willing to support financially (Including tax incentives) to the hydrogen as energy storage solution to achieve green offshore fields? If yes, in what extent?

Answer: 4) Yes – Not sure

Comment from the respondent:

“FrP is positive about working for changes to the renewable society. It requires some technological development that your questions reflect. We want as much as possible that it should be developed on market terms and with the policy instruments we have in Norway.

There are several of your questions that have not been fully discussed in the party (eg financial / tax schemes for offshore wind, CCS, hydrogen, etc.) and which will be part of the program work that is currently underway. Our suggestions for solutions and a position on several of your questions, I therefore expect to come eventually.”

Analysis:

As both Progress Party’s program and political advisor (energy and environment) of Progress Party, Lønnum, stated clearly that oil and gas are significant resources for Norway and the party continues supporting the development of oil and gas extraction on Norwegian Continental Shelf. Lønnum added that the party does not consider phasing out oil and gas extraction. Based on the response from Lønnum, while the party is 1) very supportive of oil and gas extraction, they are 2) supportive of renewable energy including offshore wind power. This indicates that the party’s primary focus is oil and gas rather than renewable energy, which corresponds with the party’s program. Hydrogen was lacking in the party’s program; however, Lønnum stated that they are 2) supportive of hydrogen storage, and she stated that offshore wind power with hydrogen storage can take part of electrification of offshore fields. Although the party may support both politically and financially for

electrification of offshore fields with connecting to shore power, offshore wind power and offshore wind power with hydrogen storage, Lønnum answered that the party believes that not

Hence, even if the party supports electrification of offshore fields, the degree of the support remained as unclear.