The Impact on Oil and Gas Activity in a Mature Province of Limiting Global Warming to 1.5 ºC

We study the impact on oil and gas activity in a mature province like Norway of limiting global warming to 1.5 ºC. To achieve net zero emissions, we consider global demand-side policies such as high CO2 taxes, very strong energy efficiency improvement and large amounts of renewables in electricity production, as well as supply-side policies as stopping new oil and gas investments. Implementing these measures lead to a relatively rapid decline in Norwegian oil and gas production until 2050. Policies aimed at restricting petroleum demand directly reduce market prices of such fuels. On the other hand, policies that restrict supply increase market prices. We find that imposing strong supply-side measures globally may be beneficial for producers