– Words cannot describe how big and important this project is, says Oil and Energy Minister Terje Aasland (Ap). Today he is visiting the Johan Sverdrup field, which marks that construction stage two has been completed, and that the entire oil field is now in production. A third of Norwegian oil production takes place from this field, according to Equinor. Johan Sverdrup phase 2 started production on 15 December 2022 and the entire field is now in production just over three years after the start of phase 1 in October 2019. Photo: Odd Rune Kyllingstad / news – It is now that we get the maximum of the values that are here . This is a fantastic industrial project, says the minister. Oil and Energy Minister Terje Aasland. Photo: Odd Rune Kyllingstad / news And that comes in handy, when the crises are almost lined up during the day: War in Europe. Power crisis. Price shock on groceries. Nursing crisis. Elderly wave. It is felt on most people’s wallets, and on the government’s expenses. But the consequences could have been even greater without the straw into the oil fund, according to chief economist Kyrre Knudsen at Sparebank 1 SR-Bank. Kyrre Knudsen is chief economist at Sparebank 1 SR-Bank, which is based in the oil and gas county of Rogaland. Photo: Ole Andreas Bø / news He explains that the national budget proposes that we will spend over NOK 300 billion from the oil fund. – Without these oil and gas revenues, every Norwegian would have had to pay close to NOK 60,000 more in taxes. The alternative is cuts in welfare provision, says the chief economist. He emphasizes that the calculation is intended to illustrate the importance of oil revenues, and that it is not real. For example, it is not the case that all residents pay tax. – The point is to show that even if Norway has a careful and responsible use of the oil revenues, it still amounts to a large sum per person, he says. At the start of 2023, the oil fund passed NOK 13,000 billion for the first time. The first deposit came in 1996. Facsimile: Screen dump / Norges Bank/Oljefondet NOK 140,000 for each of us The annual result for Equinor in 2022 ended with a record high of 74.94 billion dollars. At today’s exchange rate, this amounts to NOK 763 billion. Of these billions, Equinor paid over NOK 435 billion in tax. And if the annual result was divided among Norway’s entire population, each of us would receive over NOK 140,000. Believes the oil fund ensures stability In total, the state’s share of oil and gas revenues amounted to over NOK 1,300 billion last year, a sharp increase from the previous year. – If the state had used all the income from the Norwegian continental shelf last year, then we would not have had to pay taxes and fees at all, says Knudsen. An inviting thought, but the economist nevertheless supports the rule of action. It states that the state cannot spend more than up to 3 percent of the oil fund annually. Facts about the action rule for the use of oil money * The action rule is simply explained as a plan to ensure an even and long-term, prudent use of the oil money. * The rule assumes that over time we use the same amount of the Oil Fund (Statens Pensjonsfond Utland) as the expected real return. This is estimated at 3 per cent of the fund’s capital at the start of each year. * The action rule was previously 4 per cent, but was lowered to 3 per cent in 2017. The background for this was the lower expected return of the oil fund. (Source: NTB/news) – It is good that we have a guideline. Profitability in the oil and gas industry varies from year to year. If all the income were to go straight into the treasury, then the government’s income would fluctuate wildly from year to year. Right now are good times in the industry. The money flows in with high prices for oil, gas and electricity. But it turns quickly. While the state’s oil revenues were NOK 1,300 billion last year, they were down to around NOK 120 billion in 2020. – It will be as if your family income were to change from NOK 100,000 to one million within two years, says Knudsen. The Troll field in the northern part of the North Sea is considered one of the world’s largest gas fields. Photo: Øyvind Gravås and Espen Kleppa – Just speculation Chief analyst for sustainable finance at Nordea, Thina Saltvedt, thinks the accounts are just speculation and something we will never get an answer to. Chief analyst for sustainable finance, Thina Saltvedt. She says the statement to Knudsen is speculation. Photo: Frode Berg / news – It is not possible to say with certainty which industries would have been successful in Norway and how big they would have become if we had not had the oil and gas sector, she says. – The green transition is going too slowly Daria Maria Szymaniuk is group leader for the Green Party (MDG) in Stavanger. She believes that liquidation and restructuring are connected, and where there is political will, there is hope for a welfare state built on a forward-looking business community. – For the MDGs, Knudsen’s calculation confirms the concern that the green transition in Norway is going too slowly, says Szymaniuk. Daria Maria Szymaniuk in MDG Stavanger. She says a restructuring plan must be drawn up to avoid major changes in the Norwegian economy. Photo: Dan Uneken / MDG She says business, trade unions, politicians and academia must come together to create a restructuring plan. – This is to avoid major changes in the Norwegian economy, as a result of lower demand for oil and gas, she says. Good alternatives Chief analyst Saltvedt is not too worried about Norway cutting oil and gas revenues. She says we have other exciting industries we can make a living from in the future. – We have a very long coastline where we can operate shipping, fisheries and aquaculture. We have extensive expertise in energy production, energy export and running large energy projects. She also highlights what the other European countries are focusing on at the moment. – The EU is now focusing on a faster transition to renewable energy, where energy security, the climate crisis and industrial construction are important drivers, she says.
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The oil fund and the oil industry ensure lower taxes – news Rogaland – Local news, TV and radio
