Norway Oil Success Essay examples

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Introduction

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 (The World Bank, 2012). The cohesion between oil and economics in Norway has worked for a number of reasons. Firstly, policy makers have kept a close eye on the management of Norway’s massive oil reserves. Strict guidelines are implemented so that the reserves will not only last for future generations, but also benefit the current economy. That being said, policies old and new have positive
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At the time, Norway approached its oil reserves with caution. 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 acts as an exemplar for other countries attempting to exploit their resources. Countries are attracted to the seemingly flawless planning by the Norwegian government. Oil has contributed to the country’s enormous GDP, sitting at just under $500-billion US, in 2012 (Trading Economics, 2013). This attracts countries like Tanzania and Canada, among many others, who are attempting to adopt similar policies to emulate the same success (Hsieh, 2012; “Tanzania; Emulate Norway”, 2012). This comes as no surprise. Information from Statoil (2014), one of the largest oil extracting companies in Norway, predicts that in the future, 1.4 million barrels of oil will be produced per day. With such high production rates, it is no wonder Norway has implemented policies to maximize socio-economic benefits.

Political Approaches

Strategic government planning has enabled Norway’s oil industry to grow remarkably efficiently. In a move that defies most economic models in practice today, Norway seeks to adopt management which provides unity between the oil
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