Norwegian workers at offshore oil and gas companies went on strike[/B] on Tuesday, demanding wage increases on the first day of a planned strike that could cut the country's gas exports by nearly 60 percent and exacerbate supply shortages in the wake of the war in Ukraine.
By Saturday, daily gas exports will fall by 1,117,000 barrels of oil equivalent, or 56% of daily gas exports, while 341.000 barrels of oil will be lost, employers' organisation Norwegian Oil and Gas (NOG) said.
Oil and gas from Norway, Europe's second largest energy supplier after Russia, are in high demand as the country is seen as a reliable supplier in view of the fact that the Russian Nord Stream 1 gas pipeline will be shut down for maintenance from 11 July for 10 days.
The British wholesale price of gas for next-day delivery jumped almost 16% on Tuesday despite a fall in the price of Brent crude as fears of a global recession outweighed fears of supply disruption, including a strike in Norway.
"The strike has started," Audun Ingvartsen, leader of the Lederne trade union movement, said in an interview, adding that workers would escalate the strike to pressure employers to address demands for wage increases to offset rising inflation.
The union's members are senior executives, considered critical to business, and among the best-paid employees working in offshore companies.
The Norwegian government can intervene to stop any strike in exceptional circumstances.
In the past, such powers have been used to end strikes in the oil sector to protect Norway's reputation as a reliable gas supplier in Europe.
The last time such intervention took place was in 2020. However, the Norwegian Labour Ministry told Reuters on Tuesday that it had no comment on the ongoing conflict.
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