NAPE, Norway, Nordstream, and Ursula

Good morning, this is the Oil Patch. Come to where the flavor oil and gas news is.

Here's what the Oilman has for you today:

• NAPE – A Brief History

• Nordstream Thwarted by EU Regulations

• Ursula's Green New Deal

• Norway's Oil Windfall Sparks Fiery Debate

• Tweet of the Day

NAPE – A Brief History

"Nape?! What is it?" is the question the Oilman has got over the years.

NAPE stands for:

• North

• American

• Prospect

• Expo

NAPE, the mother of all energy prospect shindigs, was birthed in 1993 by the American Association of Professional Landmen and has since become a powerhouse with the help of the Independent Petroleum Association of America, Society of Exploration Geophysicists, and the American Association of Petroleum Geologists.

This year, NAPE will feature three incumbent governors from Texas, Oklahoma, and Wyoming.

The NAPE Summit will also include a '90s style concert, a Bitcoin Mining Pavilion, and the new NAPE Hall of Fame.

If you've never attended, essentially each year the NAPE Summit gathers all the big players in the energy industry to network, buy deals, and make moves.

If you're at the George R. Brown Convention Center today, get ready to rub elbows with the who's who of oil and gas and to take in the créme de la créme of energy prospects.

Nordstream Pipeline Thwarted by EU Sanctions

In a shocking turn of events, it has been revealed that European Union sanctions have stopped Norway from providing its expert services and equipment to inspect the damaged Nord Stream gas pipelines.

In September, several underwater explosions ruptured both Nord Stream 1 and 2 pipelines, which sent methane gushing into the atmosphere.

The Norwegian Ministry of Foreign Affairs stated that working on the pipelines would breach Norwegian sanctions regulations and, by extension, EU sanctions regulations. This lack of assistance will likely make the repairing process even more challenging and expensive.

The industry-funded Pipeline Repair and Subsea Intervention (PRSI) Pool, which was set up to deal with ruptures and mobilize emergency support from specialized equipment and service providers, was eager to help.

Unfortunately, Equinor, the administrator of the PRSI pool, had to notify Nord Stream operators that it could not provide its services due to the current legislation related to sanctions.

As a result, Gazprom-controlled Nord Stream AG had to charter a Russia-flagged vessel to conduct surveys at the blast sites and found "technogenic craters" on the seabed.

Meanwhile, Sweden and Denmark concluded that the pipelines were blown up deliberately, but declined to blame anyone publicly.

 So, as the world watches, it remains to be seen what will happen to the pipelines and whether they will be put back into operation.

Ursula's Green New Deal

The world was shocked when President Biden presented the Inflation Reduction Act (IRA) last summer. While it was meant to *air quote* fight inflation *end airquote*, it also supported the shift to greener energy with tax cuts, subsidies, and other incentives.

The EU, a leader in renewable energy, was pressured to catch up with the US.

After much consideration, the European Commission (EC) has decided to loosen restrictions on tax credits for clean energy projects. This new policy would allow the 27 EU member states to align their incentives and attract more investment.

The sanctions on Russia led to energy shortages and higher costs, so the public and policymakers have pushed for a faster shift to clean energy.

Yes, the Oilman knows the logic incoherent is the last sentence you read. Point taken?

The EC is proposing to redirect some Covid-19 recovery funds to green tax credits.

The leader of the EC, Ursula von der Leyen, plans to launch the Net-Zero Industry Act or Green Deal Industrial Plan to mobilize state aid and funding for clean energy companies.

Not exactly a packed room there 👆was it?

The EU hopes this new policy will keep companies from moving operations to the US where they can receive tax credits for using renewable energy.

Renewable energy firms have struggled due to revenue caps imposed by the EU after the Russian invasion of Ukraine. In contrast, the IRA offers tax credits, making the US more attractive for new projects.

However, EU state aid rules currently prohibit direct support for national companies, but the EC is open to adapting these rules temporarily. The Net-Zero Industry Act aims to reduce Europe's dependence on Russian energy and make the EU a competitive region for clean energy operations and technologies.

The EC's plan is seen as an extension of the 2022 REPowerEU strategy and would improve permitting procedures and simplify state-aid rules.

Pierre Tardieu, chief policy officer at WindEurope, sees the EC's plan as an imitation of the IRA.

The new climate Act would solidify Europe's position in the global shift to clean energy and prevent the US from becoming the leading hub.

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Norway's Oil Windfall Sparks a Firery Debate

As the world continues to grapple with the effects of Russia's nearly year-long war in Ukraine, Norway's skyrocketing oil and gas wealth is expected to reach new heights this year.

This has sparked an intense debate about international justice, as many question whether it's fair for Norway to profit from others' misfortune.

While the country's Finance Ministry expects its revenue from oil and gas sales to hit a record $131 billion this year, some opposition lawmakers and economists are calling for the government to put these profits to good use and create a new international solidarity fund to help countries meet their climate goals.

Critics argue that by choosing to keep these profits, Norway is damaging its international reputation and risk being perceived as "egocentric".

Regardless of the debate, it's critically important for Europe's energy security to keep gas production high.

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