Oil drilling plan divides opinion in Norway

OSLO - A classic battle pitting the oil industry against environmentalists and fishermen in Norway's Arctic seas is set to intensify on Thursday with the release of a new environmental impact study.

Extracting oil from the chilly waters off the Lofoten and Vesteraalen islands is so divisive it could wreck the ruling Labour Party's coalition in this Nordic state, which is the world's fifth largest oil and third largest gas exporter, but which also sees itself as a leader in environmental policies.

"If I were to point to one conflict that could spell the end of the present government, it would be this issue," said Frank Aarebrot, professor of comparative politics at the University of Bergen.