The contested political economy of Norway's oil and gas industry

Norway, Western Europe's largest petroleum exporter, faces a profound paradox: its economic prosperity relies heavily on hydrocarbon production, yet it champions some of the world's most ambitious climate policies. Petroleum exports account for 18 % of GDP and 42 % of total export value, while domestic CO₂ emissions reach 50 million tonnes annually, excluding emissions from exported fuels, which would multiply its climate footprint tenfold. This paper examines Norway's dual role as a strategic energy supplier and a climate leader during a period of European energy insecurity. We analyze the implications of expanding oil and gas exploration on the Norwegian Continental Shelf, assess production- and consumption-based emission accounting frameworks, and propose a more comprehensive climate accountability approach. A new discussion section synthesizes political economy perspectives on the feasibility of reducing production, identifies key actors shaping policy, and evaluates arguments for continued extraction amid global energy transition. Our findings highlight the tension between short-term energy imperatives and long-term climate commitments, offering pathways for reconciling these competing priorities. The study contributes novel insights by integrating emission accounting reform with strategic policy options, advancing the debate on how resource-rich nations can align fossil fuel dependence with climate responsibility.