North Sea upstream electrification tracker: Q4 2024

The latest update of our North Sea upstream electrification tracker reiterates Norway's leading position, but recent project delivery and challenges for getting new projects off the ground threaten the pace of deployment. Power sent to offshore facilities is expected to reach 1 GW by 2025 and potentially up to 2 GW by 2030, leaving certain regions exposed to power capacity constraints and rising power prices. But the benefit of offshore electrification is clear; reduced emissions taxes outweigh Norwegian grid power costs and provide a shelter for the expected rise in carbon prices. Outside of Norway, the opportunity for oil and gas electrification in the UK remains vast. Almost 1 GW of power demand would be required should proposed electrification projects materialise, with a strong emphasis on offshore wind as the power solution of choice. But progress is slow, as the economic viability remains doubtful due to basin maturity, regulatory/fiscal instability and rising costs.