Where does Norway's oil money go? (2024)

Where does Norway's oil money go?

Norway puts its oil revenues into the Government Pension Fund, the largest sovereign wealth fund in the world. In simple terms, the Government Pension Fund, or oil fund, is a giant savings pot that makes its money by investing in more than 9,000 companies all over the globe.

But underneath the nation's impressive accomplishments hides a not-so-secret truth: the oil industry in Norway is one of the world's leading fossil fuel and emissions exporters. In 2019, petroleum and gas accounted for 48.1% of Norway's export revenues, around USD$52.6 billion.

The Norwegian Oil and Gas Association has calculated that shutting down Norway's petroleum industry from 2020 would mean the loss of NOK 140 billion in annual government revenues. It also estimates that around 300 000 people employed in the country directly and indirectly by the industry would lose their jobs.

U.S. Imports from Norway of Crude Oil and Petroleum Products (Thousand Barrels)

When it comes to the top oil producing countries, Saudi Arabia is known for offering the best quality of crude oil.

Assets now correspond to $230,000 for every Norwegian, and the purpose of the fund is to share the proceeds of the country's oil and gas revenues with future generations.

Most of the fund is invested in equities, which are ownership interests in companies. Another part is invested in bonds, which are a type of loan to governments and companies, and a final slice is invested in real estate and infrastructure for renewable energy.

Two hundred and fifty thousand Norwegian jobs depend on oil. These jobs are expensive, require high technical skills and place upward pressures on national salary levels (Norwegian manufacturing wages are 70 percent higher than the EU average).

The world would literally grind to a halt if oil was not available. Nearly two-thirds of the world's oil consumption is used to fuel our various modes of transport, from airplanes and cars to buses and cargo ships.

Is everyone rich in Norway?

Norway is currently the sixth richest country in the world when measured by GDP per capita. Norway's GDP per capita is around $69,000, according to IMF estimates. Neighbour's and Sweden and Denmark both make the top 20 with GDP's of around $55,000 and $61,000 respectively.

Norway has proven reserves equivalent to 69.0 times its annual consumption. This means that, without Net Exports, there would be about 69 years of oil left (at current consumption levels and excluding unproven reserves).

The EU imports roughly a fifth of its gas from Norway, compared with the 40% it got from Russia before Moscow's Feb. 24 invasion of Ukraine. The statement said Norway will remain a "large supplier" to Europe beyond 2030 and expressed support to increase its oil and gas exploration.

possible and undiscovered), the United States is at the top of the list with 264 billion barrels of recoverable oil reserves, followed by Russia with 256 billion, Saudi Arabia with 212 billion, Canada with 167 billion, Iran with 143 billion, and Brazil with 120 billion (Table 1).

The best crude oil in the world is found in Malaysia. “Tapis, the Malaysian crude benchmark traded in Singapore, has for a long time held the title of the world's most expensive grade.

1. Government Pension Fund Global—Norway. Even though its name has the word pension fund, Norway's sovereign wealth fund is the largest in the world and with over $1 trillion in assets it is growing fast.

How much is Norway in debt?

In 2021, the national debt of Norway amounted to around 200.98 billion U.S. dollars.

With the Ekofisk discovery in 1969, the Norwegian oil adventure really began. Production from the field started on 15 June 1971, and in the following years a number of major discoveries were made. Exploration in the 1970s was confined to the area south of the 62nd parallel.

Last year, Norway exported 113.2 billion cubic metres of gas to Europe through the Gassco-operated national gas infrastructure system. March figures from the NPD showed gas production at 317 million cubic metres per day, almost 6% higher than in the same month last year.

The oil and gas industries play a dominant role in the Norwegian economy, providing a source of finance for the Norwegian welfare state through direct ownership of oil fields, dividends from its shares in Equinor, and licensure fees and taxes.

According to a poll on August 20, 35 percent of Norwegians said they were in favour of ending oil exploration. Even the International Energy Agency (IEA) has warned that all fossil fuel exploration projects must cease immediately if the world is to keep global warming under control.

Without oil, cars may become a relic of the past. Streets may turn into public community centers and green spaces filled with pedestrians. Bike use might increase as more people ride to school or work. The Earth will begin to heal from over a century of human-caused climate change.

Synthetic lubricants can be manufactured using chemically modified petroleum components rather than whole crude oil, but can also be synthesized from other raw materials. The base material, however, is still overwhelmingly crude oil that is distilled and then modified physically and chemically.

The EIA expected US natural gas could trade at $5.72/MMBtu in 2040, rising to $6.91/MMBtu in 2050.

Of the Nordic countries, Sweden has had the highest at-risk-of-poverty rate from 2011 to 2020. In 2020, 16 percent of Sweden's population lived at risk of poverty.

2 The key causes of Nordic prosperity and quality of life are often identified as wage equality, high public welfare spending, solid public primary and secondary education, and a relatively hom*ogeneous population.

Does Norway have more oil than Scotland?

[1] The U.K. and Norway both began offshore exploration and production in the mid-1960s with the first oil discoveries made in 1969. Since then, both countries have produced similar amounts of hydrocarbons: the U.K. has produced 42.8 billion barrels of oil equivalent (boe) and Norway 40 billion boe (figure 1).

Last year, Norway exported 113.2 billion cubic metres of gas to Europe through the Gassco-operated national gas infrastructure system. March figures from the NPD showed gas production at 317 million cubic metres per day, almost 6% higher than in the same month last year.

The EU imports roughly a fifth of its gas from Norway, compared with the 40% it got from Russia before Moscow's Feb. 24 invasion of Ukraine. The statement said Norway will remain a "large supplier" to Europe beyond 2030 and expressed support to increase its oil and gas exploration.

The agreement is expected to bring gas deliveries of approximately 100TWh to the European market this year. Norway's Minster of Petroleum and Energy Terje Aasland and European Commission vice-president Frans Timmermans, among others.

The United Arab Emirates surpassed Saudi Arabia as the world's largest oil exporter in 2019. Saudi Arabia recaptured the top spot, based on 2020 figures.