Is Norway a Country Addicted to Oil? – VisualPolitik EN

Is Norway a Country Addicted to Oil? – VisualPolitik EN


Norway is famous for its extreme climate of
long sunny summer days, long dark winter nights, and extreme cold. They are also famous for their welfare state
(like any other nordic country), but perhaps most of all they are famous for their smoked
salmon! And it’s not just us who think that – the
fishing industry is one of the most modern and important in the world… However, in the last few years, the most significant
element of the Norwegian identity has been its commitment to the environment, especially
its fight against climate change. And there is no better place for us to see
this than in their adoption of the electric car. You see, Norway has the most developed market
of electric cars in the world. In Norway, one out of every two of the cars
sold is either electric or hybrid! But there´s more… By 2025 (which is basically tomorrow) Norway
expects to stop selling gas or diesel powered cars. They only want to sell electric and hybrid
cars. It’s pretty hard to imagine, right? After more than a 100 years of combustion
engines, it all seems as if it’s about to come to an end, at least for this country… Here, electric “car” mania has even reached
their ships. Two companies are currently developing a project
called the “Tesla of the Sea”. Its goal is to launch the first autonomous
ship powered by electric batteries. The first “Yara Birkeland”, the formal
name of the project, is expected to be ready by the end of 2018. And this might leave you wondering, well,
what’s Norway´s secret? How on Earth have they made electric cars
quite so popular? Are they really so concerned about the environment? Well, yeah, maybe that is a part of it. But the majority reason is rather less idealistic… The key for this electric car boom has everything
to do with the tax incentives that the government has granted to support this industry. Look, in Norway, when you need to buy a car,
you can save a fortune in taxes if you choose and electric vehicle. For instance, you don’t have to pay any VAT
(and in Norway that’s a 25% right off the bat). You also don’t pay for the registration
fee or any other additional taxes. So what’s the result of all of this financially? Well, according to a recent study, a Tesla
Model S, for instance, would cost around $140,000 if all the taxes gas powered cars have to
pay for were to be paid on it, but thanks to this tax relief, the price is actually
around $70,000. 50% in savings! Pretty good, right? Oh, and then there are the other advantages…
these cars do not have to pay for tolls or even parking meters. Further, in Norway, most of the electricity
is hydroelectric, which means it is both cheap and clean. As a result for these and other policies,
the government expects to reduce carbon emissions by 40% in the next few years. So, now you know this, and also if you consider
that this is one of the countries with the highest living standards in the world…you
might be thinking…Well, wow, what a great country! Even the Norwegian constitution itself is
concerned with the environment. Consider article 110:
“Every person has a right to an environment that is conducive to health and to a natural
environment whose productivity and diversity are maintained. Natural resources should be managed on the
basis of comprehensive long-term considerations whereby this right will be safeguarded for
future generations as well” Article 110b of Norway´s Constitution. However, as always, not everything can be
sunshine, lollipops and rainbows… Norway is a wealthy country, with a huge welfare
state. BUT they do have a small issue… Or, at least, a problem that makes Greenpeace
really angry: And that issue is about the oil production
of the country. But, really, how oil-dependent is Norway? Well, let’s take a look… OIL ADDICTS? If we could take a time machine back to the
beginning of the 20th Century, we would find Norway with a very basic economy. All they did was fishing, fishing and more
fishing. If we travelled forward in time and, even
though things improved significantly, Norway during the 1960s was in no way included in
the list of the wealthiest countries… not at all. In fact, its per capita income was around
half the amount of Switzerland’s income. “In 1960, the standard of living in Norway
was about 30 or 40 percent lower than in Sweden or in Denmark. Now the standard of living in Norway is substantially
higher than in those two countries.” Bruno Gerard, an economist at the Norwegian
Business School in Oslo. So now we must ask, well, what happened? How did Norway become one of the richest countries
on Earth in so little time? Well, it all began to change in 1969, the
year when the first oil reserves were found. And, since then, it’s been a bit of a golden
ear. The country became one of the world’s largest
oil and natural gas suppliers. And, as you can imagine, this oil revolution
meant tons of money coming in – money that contributed to building the Norway we know
today. Today, oil and natural gas are keys of this
country’s economy. In 2016, for instance, almost 40% of exports
and more than a fifth of investment had its origin in the oil and gas sector. And, of course, the government gets its share… Look, depending on the year and the prices
of gas and oil, the income the government obtains from this industry varies from 1 out
of 4 to 1 out of 6 Euros of the government´s tax collection. That is A LOT of money. And more public income usually means… more
public spending. “World’s Most Generous Welfare State Leaves
20% on the Dole”Yep, that’s right. To a certain extent, we could say the Norwegian
model of a huge welfare state with public control of many of the large companies, has
a lot to do with oil. However, the fall in the prices of this raw
materials has led the government to take a very controversial measure: For the first time in 20 years, the government
has granted new exploration licences. In particular, 10 new licences of oil exploration
in the Barents Sea, in the heart of the Arctic Circle. And the truth is, this movement has made Greenpeace
and other environmental organizations really angry. Greenpeace has, by the way, taken the government
to court accusing them of violating the Paris Agreement and also of violating the Norwegian
Constitution itself. As we already told you, the environment is
well protected in Norwegian law. But the thing is, Norway´s green commitment
has certain limitations… “Norway has set out to be a global leader
in climate action, yet continued expansion of oil and gas production could eclipse the
benefits of Norway’s domestic emission reduction efforts”. Peter Erickson, a senior scientist with the
Stockholm Environment Institute.And the reality is that the world’s largest welfare state
does not come cheap…We, as a country, we are petroholics […] we depend so much on
the income from the oil. Just like alcoholics, we do want to stop,
but we don’t know how.” Thomas Nilsen, Editor of the Independent Barents
Observer. But, hey, it is not as if Norway was like
those other countries that only rely on oil. Absolutely not. The country is dependent on oil to a certain
extent, but it is not even close to how dependent Venezuela or Saudi Arabia are. In Norway, things are very different. Although the government carries a lot of economic
weight, Norway has tried to be open to business, and they have tried to use all this oil money
to fund productive activities and to provide a quality education. They’ve also been very committed to saving. THE FUND OF FUNDS For a country that has made so much money
with the oil industry, Norway is very different to what we are used to. Oslo, the capital city, is not taken over
by sky-scrapers, or massive malls, or extravagant complexes. In other words, they may have spent a lot
of money, but the key to Norway is, probably, that they haven’t wasted it (as it has happened
in other countries.) The Norwegian government made the sensible
decision to save a lot of their oil money. They set up a sovereign wealth fund to invest
the money, and buy assets all around the globe. And this is the biggest sovereign wealth fund
on Earth. Not even Saudi Arabia and Kuwait have saved
so much. Consider this:
“Norway’s Sovereign Wealth Fund Hits $1 Trillion” ForbesA. Trillion. Dollars. This is a fortune of around $190,000 per citizen. Instead of wasting the oil money, they decided
to invest in companies all around the world. This fund has invested money in more than
9,000 companies in 78 countries. Some of these companies are really famous:
Apple, Nestlé, Shell or Alphabet (better known as Google). Yes, indeed, we could say that the Norwegians
own part of YouTube! And you know what? One of their targets is to eventually replace
their oil income with income from these investments. These investments they all produce profit
(as you can probably imagine)… Well, since the creation of the Norwegian
Sovereign Wealth Fund, the average annual return has been around 5.7%. So, if this level of return was to be kept
the same, Norway would get an average of $50 billion in profit. That’s equivalent to 25% of their public
spending. Sound good, right? On top of that we must add the income the
government gets from oil and local companies… Companies that, despite being state-owned,
work with market criteria. So, well, you might be thinking that Norway
has nothing to worry about, right? Well, wait just a second. The welfare level seems to have a solid base,
but the government is determined to achieve economic diversification, in order to have
a more competitive economy, so they ultimately get rid off their dependency on oil. THE REFORMS Since 1927, the centre-left Labour Party has
been the most popular in general elections. But in Norway, absolute majorities are not
common. In 2013, a coalition of centre-right wing
parties like the Progress Party (famous for its radical position on immigration) managed
to put Erna Solberg in office. She is known as the Norwegian version of Angela
Merkel. Recently, in the elections of 11th September
2017, this coalition was re-elected. The intention of the government is to get
some distance from what has been known as the Norwegian mode. The government wants to improve the competitiveness
of the country by reducing taxes, especially for companies (both public and private). But, they also intend to keep developing the
oil industry. Anyway, if they are sure about something in
Norway, it is that innovation and development are the best ways to obtain high standards
of living and improve the environment. So, now it is your turn. Do you think Norway is an example to be followed
in the management of natural resources? Leave your answer in the comments as well
as in the survey. Don’t forget to subscribe to our channel
for brand new videos every Monday and Thursday. Also, don’t forget to check out our friends
at the Reconsider Media Podcast – they provided the vocals in this episode that were not mine! And
as always, thanks for watching!

100 comments

  1. If we got out of the nato. And joined up with the rest of scandinavia in a only defence pact. We would be safe and sound for many years. We dont need to bomb others to buddy up to the us. A rocket battery on every hilltop. And norway is impossible to mess with. Within reason

  2. Norwegian social, environmental and economic policies may not be perfect, but they are a damn sight better then the US!

  3. Totally wrong about Norway in the early 20th century. Norway was well on its way to become an industrial society at that point. It was not just fish at that point.

  4. Caring for the environment should include endangered animals as well. Norway blows away Wolves, Bears, Lynx and Wolverines left and right so they don't have to watch their sheep and go get drunk in Spain instead. Think you will see any proper wildlife when you go hiking in Norway be prepared to see lots of sheep and some cows.

  5. Doesnt matter what happens on the oil market. Norway produces cheap energy and are the worlds second largest gas producer. We will sit good for another 100 years because we think ahead. we plan and we save. something we see lack utterly in foreign goverments.

  6. Meanwhile in the states poor people can't afford a decent college without being overwhelmed by student loans and diabetic dies because the insulin costs too much.
    Cuz ya know…MUH LAND OF THE FREE

  7. Far Left Wing Evil Globalist Norway, Sweden, Finland and Denmark all together has a population of about 35 million compared to some of the poorest country on earth that average in hundreds of millions. This Dumb Ass White People are all about climate change bullshit and global warming crap and they want to shove this bunch of lies and bullshit down our throat…besides, this brainwashing morons can't even do anything about deforestation from rich powerful countries…On the other hand this bunch of stupid Evil Liberal Globalist and Asshole can't even control China and India with almost 3 Billion People and other 3rd world countries from dumping millions of tons of garbage, plastic, chemicals and other crap into the ocean on a daily basis…Norway burn a lot less fossil fuel but sells huge amount of oil and fossil fuel to other countries for profit then call for climate change, what a bunch of hypocrite and idiots….Pure Evil Far Left Wing Fascist Demonic Liberal and Satanic Marxist Socialist Scandinavians and Nazi Marxist Socialist European Asshole Union Are Far More "Evil" Than Satan, Hitler, Stalin, Lenin, Castro, Kim, Mao, Hirohito, ISIS, Hezbollah, Al Qaeda, Hamas, PLO, Caligula, Nero, and Genghis Khan put together….if you differ then please go and pound sand : Anyway how's the conversion to Islam going so far you Scandinavian scumbags…..Keep all your "Brainwashing Machinery" on that part of the world you morons : Stop all the Stupid Ass Liberal Changes you want the world to be : Keep Western Civilization and the Judeo-Christian "Alone" You Satanic Evil Mother Fuckers……..Stay out of our life and give as Peace :

  8. Ellectric cars are a scam.
    Energy loss in every single part of the process to charge an ellectric car.
    Ellectricity is made from coal and oil, they are less green that petrol cars with cattalytic converters fitted.
    Put all ellectric car money into nuclear fusion research.

    Hybrid is good, we have used this in deisel ellectric trains for over 40 years.

  9. Electric cars are for pussies.
    Real men need to feel the engine power connected to their right foot. Fuck off with those toy cars.

  10. I never said the Rep.party had anything to do with Norway, or did I compare it to the Labor party. The government of Norway chose a very conservative way to handle its oil revenue. They saved a large part and invested it,if you think the U.S.government Rep or Dem would have done that you probably think the Dem will take the Senate in November. Neither would the UK Labor or Conservative parties. The UK had from Sept 1, 1939 till Aug of 1945 fought a long and EXPENSIVE war on both blood and treasure. They saved Civilization in Europe, and I don't think that's an extraordinary statement. That cost them dearly , they were almost bankrupted. In the 1950's rationing was still going on in the UK. When you have a small country you can do things most countries can't and won't. Norway didn't suffer as badly as most, it's war was over quickly. It was occupied and didn't suffer terrible losses like others . When given the chance Norway did the smart thing, none of the political parties in the UK,US,or any other European countries except the Nordic countries would do what they did. What the Labor government did was adopted tax and borrow economics, high taxes and government debt slowly sucked the life out of the country. In the 60s and 70s the UK had the slowest growth rate of any democracy in Europe. Even some Warsaw pact countries grew faster. That's when Thatcher came along and revived the economy with sound policy. We can't be to hard on the Labor government, it had a hard job to do after the war.

  11. I cant take a video witch such glaring factual lapses seriously.

    Long sunny summer days??? What are you ON ABOUUUTT???

  12. See, this is what happens when you elect intelligent and non corrupt politicians. They make decisions in the interest of the long term health of the country and it's people, not quick cash grabs. And the key to this is getting the money out of politics. I doubt Norway has the kind of superPACs that the US does. I'm sure there's some money in the politics there, but not nearly as much as there is in America.

  13. We need to sue the Norwegians ( see Vikings) for raiding the British Isles. They sacked our towns and villages and killed some of my relatives I am still very upset about this.

  14. The sovereign wealth fund sounds a great idea and every country should have its own sovereign wealth fund just like the Norwegian.

  15. What hypocrites they are, want to play the ecological leader with tax gifts financed from oil money, all while the oil drillers still work at full force. A publicity stunt from europeas oil sheiks with a technology that is not even clean itself, so its all about the image they want to put out.

  16. basically, Norway exports a LOT of oil&gas for money. and ALL the electric energy is hydro.
    and they also have a population of only 5 million people that is for the most part ethnically and culturally homogeneous. they aren't SWEDISTAN. lol

  17. I live in Trinidad and Tobago .. Population 1.4 Million .. Primary source of income i Oil Revenue .. Money Squandered by government .. National development tragic .. Funds saved for a rainy day negligable .. Yes please Norway

  18. Will Norway be able to reconcile that $1 trillion and growing sovereign fund with an economy driven by hard work and innovation? Why work when you can ski and watch movies? Maybe for one or two generations, but after that we can all wonder.

  19. Do Norway has become a corporation that taxes sales oil and makes itself bigger. Btw making electric car batteries used cobalt gotten from the Congo and that’s polluting the Congo and selling oil to other countries means to keep your country clean you have to make others dirty. So if all other countries followed by that example selling oil who would by it if everyone is trying to sell it and if being a corporation made them great then that’s good ok free market capitalism saving the day again. I knew these guys weren’t socialist but damn tax still pretty high lol.

  20. As an Australian I would like to offer Norway a trade. You can have our ozone-layer-depleted sun, and in return you give us some of your sane management policies. Deal???

  21. They've got it down as much as any government can. Money coming in from oil now gets the nod from conservatives and saving/investment/diversification gets the liberals excited. Screw Greenpeace.

  22. No, they are not really innovative. Opera browser is great, some heavy metal music is good. People are nice and nature is gorgeous. But I am afraid that wealth from oil has actually slowed them down from what they would have been without. Tax breaks for electric cars influences consumption, not innovation.

  23. Expected to see how addicted Norway is to oil and how oil exhaustion would affect the economy. Seems like the video had scant info on this.

  24. Simon this video feels incomplete when you fail to mention CCS (google ccs carbon) our oil wells future… CO2 storage for all future emissions… not just money we are hoarding!

  25. Without 100% certainly…

    Yes, hydro-electric is extremely low on CO2 release. Yet, isn't hydro-electric extremely high in methane release, which is a considerably more damaging greenhouse gas?

    This release of methane being due to the large reservoirs supplying the turbines. The reservoirs housing a lot of dead and decaying organic matter and thus releasing the said methane.

  26. Ha ha. That sounds a bit like that for example. I am against the drugs. I want it everything around me to be a drug-free. But because of the fact that I can produce the best and cheapest drugs in the world I will keep making them and selling them. To anyone who wants to pay for it.

  27. In the song near the end of the video, the lyrics is
    literall:

    See the cod, see the cod, see the cod.
    A fat and nice and Norwegian one,

    a Norwegian one, a Norwegian one

    The cod is coming now

    Without it, the world is the best

    There is not a single fish

    which is better than the cod actually

    that's true and true (true and true)

    The cod falls in

    Look so bright and bold and fine

    At the banks we add city

    Then we throw the yarns in

    And afterwards we party (we party)

    And the cod, and the cod, and the cod

    And be a true Norwegian

    a cod but a Norwegian one

    And get one on the hook

    on the hook, on the hook

    Then you must keep cooking

    Yes, cook. Yes, cook.

    The cod is our friend (is our friend)

    Touch the heart even with strong men

    We'll keep it in without a stop

    Then we bump up our belly

    Everything is on two-håhå-pp

    Yes heisann and hop-håhå-pp

    For the cod. Yes, the cod. Yes, the cod

    It looks like an egg on the frog

    At the frog, make the cod

    It comes from the sea

    from the sea, from the sea

    And end up in your stomach

    Yes, belly. Yes, belly.

    The cod is coming now

    Without it, the world can pass (ring-ring)

    Stop, stop, stop

    I need to take the phone here

    Stop, stop.

    There is one who is calling here

    I have to take the phone for a moment

    "Yes, hello?"

    "What did they say?"

    "Push us?"

    "But we're working!"

    "Yes, yes, yes, yes!"

    "Ne-hehe-i, do not talk about"

    "Ha! Nehei, goodbye hi!"

    What was it?

    Oh, he was just the new neighbor who has flown in. He is the Colonel.

    He asked us to curb us.

    Dampen us?

    Yes, haha, have you heard of the spouse?

    A Colonel?

    Yes.

    Worst Worst I've Heard

    Yes No.

    Go ahead! Come on!

    Drive up the play-back

    Full steam.

    Come on, fuck up, get on now!

    Come on

    It's going to be a strong gun to stop us, hahaha.

    The ocean, that's the ocean.

    Erre Sea?

    From the sea

    C

    And from the sea

    From the sea, from the sea

    A

    And end up in your stomach

    Yes, belly. Yes, * PANG *

  28. Norvegian and Swedish people ….. infact all Scandinavians seem to be very blase and naive. They live in a world of vodka, caster sugar coated biscuits, abba, ace of base ….. oblivious to the issues of the world. They will of course deny this, but it's true. Give them a bit of vodka and they will be swearing, singing silly localised folk songs ….. they are just nuts. ALL of them. The 50% of taxes that is taken away from them each year should be spent on them going to Compton in LA or CONGO …… where they live for 1 month, unassisted by government handouts, unassisted by interpreters or ANYTHING ….. that is the only way they will learn because right now, they are only concerned about humping, vodka, bass driven pop songs, hot tubs, silly quarrels over hairstyles and fashion, silly triological cheating affairs, flippant and wayward ideas. Maybe Hillary should join them.

  29. The United States is quickly becoming more and more like a shit hole since Ronald Reagan till now. I would go further a say Richard M Nixion but he did a little to help this country with the EPA.

  30. Norway people seem very nice, however, they are crazy to let in anyone into the country. Remember not everyone shares their view!

  31. Well presented and you touch on many important topics but we also count on something that is not eagerly investigated; that is the equality between Women and Men in the work market; we started out very early recognizing equal rights and many economists count this early commitment as a real booster to our economy as well. Keep going strong!

  32. The very most important thing is to have a world wide birth stoppage. Less people means using less oil, using less trees, less mining. etc. Stop having kids.

  33. Personally as a Norwegian i'm far off from liking our current politics, personally the only thing i like and would even want a stricter policy is immigration laws. I think a system close to Denmarks would be better. Not a radical racist, just a realist with some insight…

  34. I wish the E.U could something similar. The E.U funding doesn't make sense. In Europe ever state has something to offer except for England now. The biggest problem in Europe is communication only Ireland, the Netherlands, Portugal, Germany, Belgium, Poland have invested in English as a way to business. Norway seams to be the world leader in forward thinking. I think Great Britian are try to be like Norway in this manner, but it's never going to happen Great Britian and Usa are to divided cultural and politically. Although saying all this I would never live in Norway the people are cold the weather is cold and the culture is bland. Sweden is better culturally. Economics or oil does not make a country successful, it makes it greedy and pretentious. The best countries in Europe are Spain and Portugal why the people and the culture.

  35. You forgot about the Norwegian shipping industry (and also fishing industry). The precursor of the oil offshore industry… and Norway's legacy from the viking era…..

  36. ☀ 
    scandinavia is a sosial experiment to see how far into slavery people can be led while they still beLIEve they are free – 
    a place where most people suffer from the stockholm syndrome: defending the very corporations/institutions that exploit them in all kinds of open and subtle ways

  37. is Norway addicted to oil?. Norway is smart with their oil and the revenue they earn from it; and by the way, i'm not Norwegian, i'm Canadian

  38. Hi, I'm from Norway and I'm here to tell you we're not cool. We're just cold.
    Fucking freezing cold. The worst climate in the entire world.
    Cold, wet and windy EVERY FUCKING, GOD DAMNED DAY!

  39. actally if you live outside of oslo you could pay up to 10£/11$ to drive to oslo if you dont live in norway

  40. Well… Norway is also one of the biggest consumers in the World. If everyone were to have the same life standard, we would need another 4 planets (!) just to get enough resources. It's not hard to see how this is a problem.
    Also, the industry in Norway is very low. All goods are imported, and lesser is produced in the country by each day. In other words, Norway import things to save on money. Buying things from old and dangerous factories abroad, just because it's cheaper. These factories, mines and plants are far worse for the environment than the ones found in Norway. Yes, it's good for the country itself… but not the Globe and certainly not the environment.

    So no… it's not as glorious as it seems.

  41. Why am I watching this. So much far left politics. Drilling for oil is bad etc etc. Greenpeace is a terrorist organization is shown as a good thing in this video. It's just a matter of time until ISIS is gonna be seen as a positive on this channel.

    And then you talk about income of state own companies. Most of the companies that are drilling for oil in the Norwegian part of the north sea are not state own. You make it sound like we have nationalized our oil industry like Venezuela.

    Saying that the progress party has radicalized immigration policy. WTF?

  42. The word Norwegian means stateless…
    Norsk=stateless ….
    If you have no nationality… you're Norwegian… that's
    Nor-fucking-way…

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