Doing well

15.12.2010
Nature has been generous with Norway. That laid the basis for an adventure which began over 40 years ago and has led to the drilling of more than 3 000 wells on the NCS.
  • Bjørn Rasen / Photo: Helge Hansen/Statoil

The Norwgian Oil Model

 

This in turn has made it possible to establish welfare provisions for the population which would otherwise have been impossible.

Norwegian men and women have been willing to learn, helping to make technological leaps which nobody could have dreamt of when the offshore business began. That has boosted recovery and allowed the export of technology – yielding even more revenues for the government’s coffers.

Gross income from the Norwegian petroleum sector has passed NOK 8 000 billion. While its European neighbours have experienced an economic crisis, Norway has more than NOK 3 000 billion in the bank.

Few if any nations have administered their oil wealth better – to raise living standards and provide social welfare for their citizens.

Far-sighted leaders and politicians must take much of the honour for the Norwegian model which underlies the way petroleum operations are run. Oil and gas revenues lubricate Norway’s economy, and will go on doing so for many years.

The way ahead is characterised by a more demanding hunt – in both technological and cost terms – for resources to replace the oil and gas which have already been produced and used.

According to the NPD’s analyses, roughly 40 per cent of the petroleum on the NCS has been extracted, 35 per cent is proven but not recovered and 25 per cent remains to be found.

Put another way, the nation has good prospects of continuing to profit from the industry’s revenues for many decades to come. The following articles look at various aspects of the Norwegian oil model.