Category: Business News
Norway’s decision in the early phase of the pandemic, in March 2020, to protect its petroleum industry by lowering taxes, maintaining production and investment activity in an economic setback, appears to pay off well. The strategy to renounce on short-term revenue, in order to safeguard industrial capacity and competence, showed positive results already in 2022, as output increased over the preceding years. The trend is likely to persist for several years.
Norway shows commitment to the offshore oil and natural gas industry. In hindsight, lowering petroleum taxation was a wise move by two succeeding governments and mainstream politicians. Petroleum extraction is expanding. Revenue from oil and gas in 2023 is estimated at about US$100 billion, close to three times the average for the preceding decade. The petroleum activities provide jobs and industrial challenges, especially in coastal communities. The oil and gas revenues bolster Norway’s economy, although only a tiny fraction is spent directly over the budget. The rest, savings from oil and gas revenues, have made the world’s largest sovereign wealth fund.
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