Offshore workers in Norway have been protesting seeking wage hikes from the government. Their strike is expected to adversely affect gas supplies to the UK. This, in turn, will result in a rise in energy prices in Europe, may be the highest in four months.
If things go worse, gas supply may be completely cut off to the UK, which imports half of its gas and over 70 per cent of its imports come from Norway.
With oil prices having gone up, the Norwegian offshore workers have demanding higher salaries. They have called for nationwide strikes and protests, which are expected to adversely affect oil and gas supply to the UK and the EU.
Following a strike by the employees, Equinor ASA had to close three of its oil fields. The employees have been threatening to shut down a primary distribution centre that is responsible for gas supplies to the UK, which may result in a steep hike in energy prices.
These strikes have affected almost 60 per cent of the gas exports and revenue loss to the tune of NOK 1.8 billion on a daily basis. Output will be reduced by 89,000 barrels.
With Russia also having stopped gas exports, this strike is capable of causing extreme gas shortage in Europe.
However, the Norwegian Labour Ministry has reportedly intervened to facilitate a settlement between the offshore oil and gas workers and energy executives. It is hoped that workers will soon return to duty.