• 3 minutes Will Iron-Air batteries REALLY change things?
  • 7 minutes Natural gas mobility for heavy duty trucks
  • 11 minutes NordStream2
  • 5 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 9 hours U.S. Presidential Elections Status - Electoral Votes
  • 8 hours Evergrande is going Belly Up.
  • 57 mins Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 11 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 2 days Poland Expands LNG Powered Trucking and Fueling Stations
  • 3 days World’s Biggest Battery In California Overheats, Shuts Down
  • 2 days The unexpected loss of output from wind turbines compels UK to turn to an alternative; It's not what you think!
  • 1 day Ten Years of Plunging Solar Prices
  • 1 day Extraction of gasoline from crude oil.
  • 4 days The coming Cyber Attack
  • 4 days Is the Republican Party going to perpetuate lies about the 2020 election and attempt to whitewash what happened on January 6th?
  • 4 days Ozone layer destruction driving global warming
  • 4 days 'Get A Loan,' Commerce Chief Tells Unpaid Federal Workers

Breaking News:

UN Climate Conference Snubs Big Oil

Europe Could Turn To More Coal If Gas Crunch Persists

Europe Could Turn To More Coal If Gas Crunch Persists

Despite its ambitious green energy…

How To Buy Discount Gold As Inflation Soars

How To Buy Discount Gold As Inflation Soars

Rising oil prices historically means…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Norway’s $1 Trillion Wealth Fund To Dump All Its Oil & Gas Stocks

Norway’s sovereign wealth fund will exit all investments in oil and gas production acting on a government recommendation in line with a more cautious approach to energy investments by the world’s largest sovereign wealth fund worth about US$1 trillion.

The move is bound to shake up the oil and gas industry as Norway’s fund has assets worth some US$37 billion in upstream investments that the government now considers too risky in light of the heightened price volatility post-2014.

“The goal is to make our collective wealth less vulnerable to a lasting fall in oil prices,” the Financial Times quoted Finance Minister Siv Jensen as saying. This suggests the companies most affected by the decision would be pure-play producers rather than Big Oil majors but even the latter’s stocks are bound to be hurt by the decision.

The decision has been about a year in the works. In 2018, the fund’s management recommended the move to make itself less vulnerable to oil and gas price shocks and won the support of several top local economists as well as academics. The portion of oil and gas stocks in its portfolio constitutes 5.8 percent of its total equities holdings at end-2018. Related: Exxon Punished By Wall Street For Spending Strategy

“The oil business will be a major and important industry in Norway for many years to come. The government’s income from the [continental] shelf basically follows the profitability of upstream companies. Therefore this is about spreading the risk,” Jensen said at the announcement of the decision.

However, as the FT notes, chances are environmentalists organizations will seize on the opportunity to step up pressure on other institutional investors in oil and gas to consider dialing back their exposure to the fossil fuel industry.

The Norwegian fund is invested in more than 9,000 companies worldwide and owns 1.4 percent of listed companies around the world and 2.4 percent of all listed companies in Europe. As at December 31, 2017, the fund held stakes in 350 oil and gas stocks around the world, including just over 2 percent in each of Shell and BP, 1.9 percent in Total, 1.4 percent in Eni, 0.9 percent in Exxon worth more than US$3 billion, and just below 1 percent in Chevron worth US$2.24 billion.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Yussif Sulemana on March 08 2019 said:
    With respect to this development, oil E&P leaders will need a workable and sustainable strategy to withstand this heavy shock wave. It is another opportunity for investors to begin taking renewables such as solar, wind, hydro and even nuclear seriously. Norway's move will indeed, send shivers down the spine of fossil fuel investors.
    I do not think this is the last surprise for the market though; it is only a woke up call.

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News