Europe’s Oil and Gas Revival Raises Questions About Energy Security, Climate Goals, and U.S. Trade

The move comes in the wake of the 2022 Russian energy crisis

an image of a roadway sign with European nations on it — Eyematrix from Getty Images

*Image via Eyematrix from Getty Images*

After years of pushing aggressive climate goals and curbing fossil fuel development, several European countries are now reversing course - at least partially. Amid energy security concerns and high import costs, countries like Greece, Italy, and the UK are embracing new oil and gas projects, signaling a shift in how Europe balances its environmental ambitions with energy needs.

The move comes in the wake of the 2022 energy crisis, which forced the European Union to rapidly replace Russian oil and gas imports, mostly with liquefied natural gas (LNG) from the United States. That transition has been expensive, politically sensitive, and ultimately incomplete. Now, some European governments are revisiting domestic production as a means to reduce reliance on volatile international supply chains - even if doing so sparks debate over long-term climate commitments.

Europe still officially aims to be carbon-neutral by 2050, and renewable energy development continues to accelerate. But policymakers are increasingly acknowledging that natural gas will remain part of the mix - at least for the foreseeable future.

Greece made headlines in November by issuing its first offshore oil and gas exploration license in over four decades. The consortium, led by Energean and including ExxonMobil and Helleniq Energy, will explore Block 2 in the Ionian Sea. While drilling won’t begin until at least late 2026, the field could contain up to 200 billion cubic meters of gas—though those estimates are speculative until confirmed by drilling.

Greece, which consumes a relatively small amount of gas domestically, is hoping the field will position the country as a net exporter to other European markets. It’s also issued additional exploration rights to Chevron and Helleniq for blocks south of the Peloponnese peninsula.

In neighboring Italy, the government under Prime Minister Giorgia Meloni is considering a revival of offshore oil and gas activity, suspended in 2019. Shell, the country’s largest producer, has indicated it’s open to increasing investment in Italian upstream projects.

Meanwhile, Britain has loosened its ban on new exploration in the North Sea, opening the door for expanded production in existing fields. Two large new projects are also expected to be approved soon. Poland is exploring new offshore development following a significant onshore oil discovery, and Norway, already a regional leader in oil and gas, plans to drill 250 exploration wells over the next decade through state-backed Equinor.

Not all European countries are on board. Denmark and the Netherlands have maintained bans or restrictions on new exploration, focusing instead on eventual wind-down strategies.

Implications for the U.S. and Global Markets

The shift has not gone unnoticed in Washington. The Trump administration has been a vocal proponent of increased European fossil fuel production, seeing it as a way to enhance geopolitical stability and reduce dependence on authoritarian energy suppliers. U.S. officials even attended the Block 2 signing ceremony in Athens, signaling strong support.

At the same time, Europe’s move to increase domestic supply raises questions about the future of transatlantic energy trade. In July, the EU pledged to more than triple its U.S. fuel purchases over the next three years, targeting $750 billion worth of imports - a goal that now seems increasingly ambitious.

More broadly, Europe’s pivot underscores the complicated reality of energy policy: even as countries pursue decarbonization, immediate needs—like heating homes and powering industries - often take priority. Energy security, it seems, is reshaping the climate conversation.

Europe’s oil and gas resurgence is unlikely to radically alter global supply or change the region’s climate trajectory. Most of these projects are years away from commercial production, and renewables remain central to national energy strategies. But the shift does mark a significant change in tone.

The debate going forward will be how to reconcile short-term energy security with long-term climate goals—a balancing act that governments, industries, and voters will continue to navigate.