• 3 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 8 minutes Why Is America (Texas) Burning Millions of Dollars Per Day Of Natural Gas?
  • 11 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 15 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 17 mins The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 1 hour Hormuz and surrounding waters: Energy Threats to the World: Oil, LNG, shipping markets digest new risks after Strait of Hormuz attack
  • 6 hours As Iran Nuclear Deal Flounders, France Turns To Saudi For Oil
  • 51 mins The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 10 hours Middle East on brink: Oil tankers attacked off Oman
  • 4 hours Never Knew Gasoline Prices were this important!
  • 1 hour Russia removes special military forces from Venezuela . . . . Maduro gone by September ? . . . Oil starts to flow ? Think so . .
  • 3 hours (Un)expectedly: UK Court Sets Assange U.S. Extradition Hearing For February 2020
  • 20 hours Emmissions up, renewables nowhere
  • 20 hours Britain makes it almost 12 days with NO COAL
  • 21 hours Only one country is contemplating destroying its own resource sector: Canada
  • 21 hours Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 3 hours The Latest: Iranian FM Says US Cannot Expect To ‘Stay Safe’
  • 4 hours We Are Better Than This
Have Canadian Oil Prices Hit The Sweet Spot?

Have Canadian Oil Prices Hit The Sweet Spot?

Canadian oil prices have recovered…

Iran Won’t Leave OPEC

Iran Won’t Leave OPEC

Iran has no intention of…

Norway Set to Use Record Oil Fund Money In 2017 Budget

Offshore North Sea

Norway’s government is expected to make a rare decision and use just over 3 percent from its giant US$899 billion oil fund - the world’s largest – in next year’s budget, local media report, citing estimates by the statistics office and investment banks.

The government has rarely used more than 3 percent of the Government Pension Fund Global, also known as Norway’s oil fund.

The Norwegian fiscal policy sticks to a fundamental rule, the so-called budgetary rule, under which the government may spend no more than the expected real return of the fund, which is estimated at 4 percent per year.

According to estimates by Statistics Norway SSB, DNB Markets and Nordea Markets, Conservative Prime Minister Erna Solberg and Finance Minister Siv Jensen will present this Thursday a budget bill that will envisage the use of US$28.18 billion (225 billion kroner) from the fund next year.

Last year, US$22.49 billion (179.6 billion kroner) was transferred from the fund to the budget.

As of the end of the second quarter of this year, the fund had a market value of US$898.8 billion (7.177 trillion kroner).

Some experts are not very happy with the proposals to use more oil money in the budget. Professor Øystein Thøgersen at the Norwegian School of Economics (NHH) has told NTB website that he was worried that Norway has been too dependent on oil money for a long time.

Various analysts expect Norway to ease fiscal stimulus next year compared to this year, because signs are emerging that the economy is on the road to recovery, Bloomberg reports.

In what many have seen as a ‘paradox’, Norway is planning to use money from the fund to finance clean energy initiatives and projects. The electric car market will be one of the sectors to benefit from the new program as “lucrative” subsidies from the fund will be used to ensure Norway becomes carbon neutral by 2030.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News