Abstract
The Norwegian petroleum industry is today strong and internationally competitive. Of course, this was not always the case: the industry was supported, protected, and nurtured at a time when states enjoyed much greater scope for sovereign autonomy. During a relatively short period of time, from about 1970–1986, the Norwegian authorities employed four main instruments to develop local competence in the sector: their unique licensing system, a strong national oil company (Statoil, now Equinor), a series of Technology Agreements and an autonomous regulatory regime that benefited domestic producers. None of these tools are used today, as Norwegian authorities now embrace a remarkably “hands-off” approach to managing the sector. This chapter describes this brief period of political activism, and the industry it created.
This contribution draws heavily from my book, co-authored with Bjørn Letnes (Moses and Letnes 2017a); especially Chap. 8.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
Notes
- 1.
See NPD ( 2019b) for examples.
- 2.
In 2017, the largest Norwegian supply companies, in terms of international presence, were (listed alphabetically): ABB, Akastor, Aker Solution, BW Offshore, Cameron, DeepOcean, DNV GL, DOF, TechnipFMC, Fred Olsen Energy, Kongsberg Gruppen, NOV, Odfjell Drilling, PGS, Rolls-Royce Marine, Siem Offshore, Solstad Farstad, TGS, and Vard and Wärtsilä. This list includes 7 rig- and ship-owners; 12 offshore and maritime equipment and service providers and one shipbuilding company (Rystad Energy 2018: 6).
- 3.
See Chap. 2 in Moses and Letnes (2017a).
- 4.
General Agreement on Tariffs and Trade (GATT), subsequently the World Trade Organization (WTO).
- 5.
There are lots of acronyms in this paragraph. These four are directly associated with programs at the World Trade Organization (WTO): TRIMs: Trade-Related Investment Measures; TRIPs: Trade-Related Aspects of Intellectual Property Rights; GATS: General Agreement on Trade in Services; and GPA: General Procurement Act.
- 6.
The first effort was actually to settle the boundaries of the Norwegian Continental Shelf with neighboring Denmark and the UK. Once these territorial boundaries were established and agreed upon, policymakers could begin to formulate a development strategy.
- 7.
Article 54 of a Royal Decree from 8 December 1972. See Moses and Letnes (2017a: 155).
References
Chang, H.-J. (2005). Kicking away the ladder: Development strategy in historical perspective. London: Anthem Press.
Energy, R. (2018). Internasjonal omsetning fra norske oljeserviceselskaper. Rapport til Olje- og energidepartementet. 13 November.
Moses, J., & Letnes, B. (2017a). Managing resource abundance and wealth: the norwegian experience. New York: Oxford University Press.
Moses, J., & Letnes, B. (2017b). Breaking Brent: Norway’s response to the recent oil price shock. Journal of World Energy Law and Business, 10, 103–116.
NPD (Norwegian Petroleum Directorate). (2019a). The Government’s Revenues. Norwegian Petroleum. 13 February draft. https://www.norskpetroleum.no/en/economy/governments-revenues/. Accessed August 5, 2019.
NPD. (2019b). Companies. Norwegian Petroleum. 13 February draft. https://www.norskpetroleum.no/en/facts/companies-production-licence/. Accessed August 5, 2019.
NPD. (2018). Employment in the Petroleum Industry. Norwegian Petroleum. 9 October draft. https://www.norskpetroleum.no/en/economy/employment/. Accessed August 5, 2019.
Ruggie, J. G. (1982). International regimes, transactions and change: Embedded liberalism in the postwar economic order. International Organization, 36(2), 379–415.
Skule, S., Grytli, T. (1997). Teknologisk utvikling og samfunnsendring. Eksempler fra oljehistorien og bankhistorien. FAFO Report 217. Oslo: FAFO.
SSB (2019) Final expenditure and gross domestic product. Current Prices, NOK millions. 8 February version. https://www.ssb.no/en/nasjonalregnskap-og-konjunkturer/tables/nr-tables. Accessed August 5, 2019.
St. meld. nr. 28 (2010–2011). En næring for framtida—om petroleumsvirksomheten. Oslo: Olje- og energidepartementet.
St. meld. nr. 53 (1979–80). Om virksomheten på den norske kontinentalsokkelen. Oslo: Olje- og energidepartementet.
St. meld. nr. 11 (1968–9). Undersøkelse om boring etter petroleumsforekomster på den norske kontinentalsokkel i Nordsjøen. Oslo: Industridepartementet.
Victor, D. G., Hults, D. R., & Thurber, M. (2012). Oil and governance: State-Owned enterprise and the world energy supply. Cambridge: Cambridge University Press.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2021 The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG
About this chapter
Cite this chapter
Moses, J.W. (2021). Norwegian Local Content Policy. In: Pereira, E.G., Spencer, R., Moses, J.W. (eds) Sovereign Wealth Funds, Local Content Policies and CSR. CSR, Sustainability, Ethics & Governance. Springer, Cham. https://doi.org/10.1007/978-3-030-56092-8_24
Download citation
DOI: https://doi.org/10.1007/978-3-030-56092-8_24
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-56091-1
Online ISBN: 978-3-030-56092-8
eBook Packages: Economics and FinanceEconomics and Finance (R0)