Europe changes tack on Arctic oil and gas as Russia, China and US vie for influence

The European Union is dropping its push for a global ban on new oil and gas drilling in the Arctic as growing tensions with Russia, China and the United States force the bloc to give greater attention to security in the region.

The EU will continue to oppose Arctic oil and gas drilling but will no longer seek an international agreement to stop countries from developing new fossil fuel reserves there, according to a new Arctic strategy due to be announced on Tuesday, as reported by Reuters.

The shift marks a change in the bloc’s approach since 2021, when it began pushing for an international ban on new Arctic oil and gas projects on environmental grounds.

Why is the Arctic becoming more important?

The Arctic has gained strategic importance as the US, Russia and China seek to expand their influence in the region. Its energy resources, maritime access and security infrastructure have become important parts of that competition.

US President Donald Trump has recently promoted plans to drill for oil in Greenland, following an agreement on security involving Denmark and Greenland.

The EU’s efforts to secure a global drilling ban have also faced challenges because of its strained relationship with the Trump administration. Washington has backed fossil fuels over renewable energy and withdrawn the US from the Paris climate agreement.

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The EU’s new strategy will retain its ambition to keep oil, coal and gas in the ground in the Arctic. But it drops an earlier commitment to work with international partners towards a legal obligation preventing further development of hydrocarbon reserves.

An EU official said the bloc’s position remained clear, adding that it controlled its own policies on buying Arctic oil and gas and allowing drilling.

Norway’s role in Europe’s energy debate

Norway has been lobbying the EU to soften its opposition to Arctic drilling. The country has become a more important supplier of natural gas to Europe since 2022, when Russia’s invasion of Ukraine disrupted the continent’s energy supplies.

Oslo argues that oil and gas exploration in the Barents Sea, north of mainland Norway, should be treated differently from drilling in other parts of the Arctic. The area is ice-free and easier to access, according to Norway’s argument.

The debate has exposed differences within the European Commission over how to balance energy security with climate goals.

Some officials believe the EU should focus on electrification and reducing its reliance on imported fossil fuels, particularly as demand for natural gas is expected to decline in the coming years.

Others argue that Europe needs to consider alternative energy supplies as the US-Iran war has contributed to another oil and gas price crisis.

However, new Arctic gas projects would take years to reach the market, limiting their ability to ease Europe’s immediate energy concerns.

Security moves to the centre of EU strategy

The new Arctic strategy will also focus on monitoring and responding to security threats.

The EU plans to make greater use of its Copernicus and Galileo satellite systems in the region and improve the sharing of information to monitor damage to undersea cables and the movements of Russia’s so-called shadow fleet of oil tankers.

The bloc will also explore joint procurement of icebreakers to improve its ability to operate in Arctic waters.

The shift comes as international cooperation on climate change faces growing challenges and the EU seeks to balance its environmental commitments with concerns over energy supplies and strategic security.

A September analysis by environmental group WWF argued that the Arctic’s limited infrastructure, available resources and security challenges would prevent it from making a meaningful contribution to Europe’s energy needs before 2040.

That is also the year by which the EU has committed to reducing greenhouse gas emissions by 90 per cent from 1990 levels.