The oil industry in Norway has seen enormous success that is virtually unmatched by any other country in the world. Since the discovery of oil on its coast in 1969, the country has experienced steady economic growth. Accordingly, Norway’s massive GDP is a reflection of this growth; as of 2012, it ranked in the top 25 of the world in terms of GDP (World Bank, 2012). The cohesion between oil and economics in Norway has worked for a number of reasons. Firstly, policy making has kept a close eye on how to manage the massive oil reserves. Strict guidelines are implemented so that the reserves will not only last for future generations, but also benefit the economy today. That being ...view middle of the document...
The government asserted that the bottom of the Norwegian sea belonged to Norway, and the oil industry would strictly be run by Norwegians (Foster, 1974). This alone ensured Norwegians security in what now appears to be Norway’s greatest asset.
Today, the oil sector in Norway is exemplary for other countries attempting to exploit their resources. It has contributed to the country’s enormous GDP, sitting at just under $500-billion US, in 2012. This alone attracts countries like Tanzania and Canada, among many others, who are looking at Norway’s policies to emulate the same success (Hsieh, 2012; Africa News, 2012). This comes as no surprise. Information from Statoil (2014), one of the largest oil extracting companies in Norway, estimates that 1.4 million barrels of oil will be produced per day, in the future. With such high production rates, it is no wonder Norway has implemented policies to maximize socio-economic benefits.
Strategic government planning has enabled Norway’s oil industry to grow remarkably efficiently. In a move that defies most economic models today, Norway seeks to adopt management which provides unity between the oil industry, the economy, and society. Holden (2013) suggests, “the management of the petroleum resources reflects the view among Norwegian decision makers that the resources belong to the nation, and that the development should benefit the society as a whole.” This not only ensures Norwegians the right to their resources, but also the wealthThe most important method for Norway’s resource management, is creating and maintaining policies which address both economic and social issues.
Thanks to strict policy making within its economy, Norway survived the economic decline in 2008: “in 2009, economic policy making was so sound that Norway only experienced a 2 per cent decline in real GDP” (Boye, 2011). To better manage its oil reserves, Norway has implemented a number of policies; one of which has been imperative to its economic success....