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Statoil Company In Norway Essay

1333 words - 5 pages

Norway is a country that has tax laws that have been implemented on the companies that extract oil from their land. Norway uses a government based oil company called Statoil, alongside other companies, to extract the resource. They retain sixty-seven percent shares of that company and the rest are publicly owned. This company benefits Norway as a whole country. Norway owns shares in other companies bringing their total to about eighty percent of all oil in Norway. So why have taxes not been implemented on the oil companies in Canada to benefit Canada as a nation, instead of sole individuals, companies and foreigners.
The first request to explore the continental shelf in The North Sea was sent to the Norwegian Government by Philips Petroleum in October of 1962. He offered one hundred and sixty thousand dollars per month for the exclusive rights to the exploration and development of Norwegian territory and the Norwegian Continental Shelf. For the Norwegian authorities they saw this as an attempt to bribe and disclosed that if the shelf were to be explored it would be open to many companies not just one.
In 1963 the Norwegian Government proclaimed sovereignty over the Norwegian Continental Shelf in the North Sea and said that the state owns any natural resources within the shelf. The Government was the only one allowed to grant licenses for exploration and production. 1963 was the first year that the shelf was to be explored but no drilling was allowed.
In 1965 the official borders of the North Continental Shelf were divided between, Great Britain, Denmark and Norway.
“First licensing round was announced on 13 April 1965. 22 production licenses for a total of 78 blocks were awarded to oil companies or groups of companies. The production licenses gave exclusive rights for exploring, drilling, and production in the license area. The first well was drilled in the summer of 1966, but it was dry.”
1969 was the year that Ekofisk was discovered and that’s when the Norwegian oil boom began. Foreign countries dominated the shelf until 1972 when the government decided the government would participate in fifty percent of each production license. This state participation is what allowed Norway to develop its resources to benefit the country as a whole.
“Developing the province's conventional oil resources has been an important facet of Alberta life since 1914 when the province's first major oil field was discovered at Turner Valley.”
Alberta, otherwise known as “Black Gold” country, is Canada’s petroleum central. The first major oil discovery was in 1914 in Turner Valley and in 1947 the Imperial Oil Company discovered the “Leduc No. 1” well which in turn produced three hundred and seventeen thousand barrels of oil and three hundred and twenty-three million cubic feet of natural gas. After this over five...

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