German Finance Minister Open to New Oil, Gas Drilling in North Sea

Madeline Chambers
Monday, March 14, 2022

Germany should rethink its ban on allowing new drilling for oil and gas in the North Sea as it tries to reduce its dependence on Russian energy due to the invasion of Ukraine, Finance Minister Christian Lindner said on Sunday.

Under the coalition deal between Chancellor Olaf Scholz's Social Democrats, the Greens and Lindner's Free Democrats (FDP), Germany will not grant any new permits for oil and gas drilling in the North Sea beyond the existing framework.

"We have to question the decision in the coalition agreement," Lindner told the Tagesspiegel newspaper. "Due to global market prices developments, this looks more economical."

Germany, which depends on Russia for two thirds of its natural gas imports, is urgently trying to boost alternative energy sources, including building its first liquefied natural gas (LNG) terminal. Lindner, however, said at least for a transitional period, Europe's biggest economy will still need oil and gas.

"Against the changed geopolitical background, I think it is advisable to examine the entire energy strategy of our country without any prohibitions on thinking," he said.

Despite the sharp rise in fuel prices at petrol stations, Lindner rejected a temporary cut in sales tax from 19% to 7% for petrol and diesel, as suggested by some politicians.

"If the conservatives call for a fuel price brake, they must say what they want to cut in the budget. Or admit they are prepared to take on new debt for this," he said, adding he was also against introducing a speed limit on German motorways.

(Reporting by Madeline Chambers; Editing by Susan Fenton)

Categories: Drilling North Sea Activity Europe

Related Stories

EnQuest Cancels Dolphin Drilling’s Rig Contract as Kraken Drilling Campaign Hits Hurdle

Equinor Hires Northern Ocean’s Deepsea Bollsta Rig for Ops Off Norway

Equinor Strikes Oil and Gas at Rhombi Prospect in North Sea

Current News

Oil Edges to 2-Week High on Ukraine News

EMGS to Conduct CSEM Survey Offshore India

Poland to Open New Areas for Offshore Wind Development in Baltic Sea

Swedish Firm Eyes Multi-Megawatt Wave Energy Farm Off Grenada

Subscribe for OE Digital E‑News