By Dominic Chopping 
 

Denmark's government, along with a majority in parliament, agreed late Thursday to end all oil and gas activities in the Danish sector of the North Sea by 2050.

The agreement means there will be no more licensing rounds and all exploration and extraction of oil and gas must end by 2050, the year Denmark aims to be climate neutral, meaning its greenhouse-gas emissions will be reach net zero.

In a statement after agreeing the deal, Denmark's minister of climate, energy and supply, Dan Jorgensen, said the agreement sets a new, green course for the North Sea.

"We are now putting an end to the fossil era," he said.

"The agreement contains exciting opportunities to utilize the old oil and gas fields for [carbon dioxide] storage, where there is also a large job potential, even in the same area and for the same professional groups."

The government said there were around 4,500 people directly and indirectly employed in the oil and gas industry in Denmark, referring to 2017 data.

Denmark is the largest oil producer in the European Union, which excludes Norway and the U.K. In 2020, the Danish Energy Agency expects that around 83,000 barrels of oil and an additional 21,000 barrels of oil equivalent to gas will be produced in Denmark.

 

Write to Dominic Chopping at dominic.chopping@wsj.com

 

(END) Dow Jones Newswires

December 04, 2020 05:56 ET (10:56 GMT)

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