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Norway uses money from oil exploration for the benefit of its people and there is no crisis there

Paulo Nogueira
18-11-2017 08:51:05
in Uncategorized

With a fund created in the 1990s, Norway has a heritage of trillions saved for future generations.

[supsystic-social-sharing id='1′]Em crisis times in the oil industry, Norway and its citizens could be desperate, with chaos across the country and its economy going downhill, if we take into account that 25% of the Domestic Product comes from the exploitation of fossil fuels. But as incredible as it may seem, no one there knows what a crisis is, at least it is not felt like on other continents. But why doesn't it happen there?

Very simple! In 1990, Norway started the Petroleum Fund (“Oljefondet”), with the objective of saving resources from oil exploration to ensure the quality of life of its citizens in the future. This model served as a model for the creation of a similar program here in Brazil for the pre-salt.

In addition to being brilliant, this is the largest sovereign wealth fund on the planet, and “belongs to the people and for the people”. In other words, this money can never be touched by high-ranking politicians for frivolous reasons, there are strict criteria, where transparency and control are fundamental. If you go on the street and ask a Norwegian about this fund, he will say the following: “Fund was created to benefit our children, and also our children's children”. Watch the video below, then continue reading:

Corruption Scandals at Petrobras, Left the Norwegian Government on Alert

They pay so much attention to their sovereign wealth fund that in 2016, motivated and fearful by the repercussions of the corruption scandals at Petrobras “in Brazil”, the country’s ethics council requested that the state-owned fund be kept under observation. Oljefondet's chain of control works as follows: The Ministry of Finance controls this fund but it is managed by the Central Bank of Norway.
The Norwegian concept is very simple and clear: The money generated from the fund can only be moved in very special circumstances and only on top of the yields at a maximum rate of 4% per year. Amazingly, this has never happened since the fund was created. This maintains a society with equal rights and a stable economy.

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Paulo Nogueira
With technical training, I worked in the offshore oil and gas market for a few years. Today, my team and I are dedicated to bringing information from the Brazilian energy sector and the world, always with credible and up-to-date sources.