How OIL made Norway one of the RICHEST countries in the world
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- čas přidán 1. 06. 2024
- Is just having a lot of oil enough to create a wealthy country? In this video I explain how Norway found the oil and the reasons why it has transformed Norway into one of the richest countries in the world.
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Hey all, thanks for watching this episode! I know talking about oil these days triggers a lot of opinions concerning climate change. To be honest I am not a big fan of oil production, and I hope the oil can be 100% replaced with greener alternatives in the near future. BUT I am very fascinated by how Norway as a small country has managed their oil resources, and been able to create such a huge amount of wealth, and that is what this episode is about. Take care, Pål (and remember to like and subscribe)
Hey Pål. Really good video mate. Well narrated and informative. Thanks for doing that!!!
@@subarcticlife445 Thanks a lot! :D
@ How’s the sailing going??
@@subarcticlife445 So far a bit slow. Some sailing here and there when there is time. The long journey will be second half of July. Plan to sail down the Norwegian coast and then to Stavanger, if the wind cooperate. Hope you are doing well!
@ sounds good... except... why stop at Stavanger?? Keep going up the other side and come visit us !!! 😎
Excellent explanation on how Norway became one of the wealthiest Nations in the world. Perhaps it would have been good to mention Farouk Al Kasim who was very instrummental in guiding Norway to avoid the pitfalls that would have handed over Norway's natural resources to foreign oil corporations.
Thank you! Yes I should have mentioned him, but thanks for bringing up his name here in the comments 👍👍👍 perhaps I’ll make a similar episode and I’ll include him then
As a Saudi 🇸🇦 we Respect the Norway efforts as one of biggest investors..and here if ask people they are familiar with the information about Norway 🙂.. we talked about it as a Economical example of wealth and success...
Best wishes 🇸🇦 🌴 🙂👌🏻
Hei Abdulaziz, I think in terms of oil Norway is like "the Saudi Arabia of the north", even though we have very different societies. Oil has certainly given us a lot of possibilities!
Norway made rich by an Iraki call Faroul al qasim,
Without delving too much into politics, Norwegians are very lucky to have elected government officials that truly represent the common good of it's people and country. A true public service. Bravo Norway. You just show the world how government should work together for the betterment of it's citizens regardless of party affiliation. Thank you Pål for sharing and hoping other countries can learn and benefit from Norway's example.
Thanks Rachel, and I agree we are lucky to have elected good government officials. Especially at that time back in the 60s-70s when we found the oil. And by the way, the Norwegian Oil fund was actually inspired by the one you have in Alberta :)
@ Yes, we call it Heritage Fund who was started by a visionary man. It later became the piggy bank for politicians to get re-elected to stay in power. What a shame. Guess politicians in Norway have integrity than what we have here.
@@rachelpare3780 yea that is unfortunately the problem, that politicians can't keep their hands off the money bag..
@ It's unfortunate indeed!!!. Now the bag is empty and we are in a very deep hole. Yet people have short memory to make real change. And so the cycle goes on
@@rachelpare3780 yea, and a bad habit is difficult to break :/
Deep respect. I knew this in broad outline but I love knowing the details. It honestly makes me proud to be Norwegian. I'm reminded of my grandfather who was a farmer in northern Minnesota. When the federal government sent him a check for NOT planting some of his acreage he returned it. He said he would not accept payment for NOT working. These values seem deeply rooted in Norway. The United States should be ashamed. Our natural resources have been taken without fair compensation... and the wealth generated ends up in private hands.
Thanks again Curtis. Us Norwegians can be very grateful we had wise politicians back then who made the right choices. But the Norwegian mentality of course also plays a role. Your grandfather sounds like a true Norwegian, all though times are changing and I sometime feel that we don't have the same good common sense as we used to back in the days
Farouk al-Kasim, a young Iraqi geologist.who saved Norway from oil
👏🙏
Hey Pal, I am so glad you chose to do this video, in a very simple way you managed to explain the complex topic and educate me, and everyone who watched, about the oil industry in your country and how Norway managed to use this resource thoughtfully. Looking forward to seeing more from you!
Hei Sanel, thanks a lot for your nice feedback! I hope to come up with more educational content, so stay tuned :D
Great information shared about Norway's oil and the wealth of the Country. It is evident that having politicians who put Country first instead of themselves or their parties, smart investments and higher taxes provides funding for all sorts of services and infrastructure in Norway. We in the USA are at odds for how to improve our aging infrastructure. Certain factions of our politicians don't want to raise any taxes to pay for the improvements. Wish some of our politicians would visit Norway to see how much better this country is in many respects, including infrastructure, social programs and educational funding than ours. The USA has the wealth but not the united society to make these things happen.
Thanks Doug! I'm really glad Norway found the oil back in the 60s and not today. I think the outcome would have been very different as we now have many politicians who favor heavy privatization and lower taxes. But still the majority want to save and invest the money instead of spending it recklessly. Low taxes is a really bad long term approach, as the state needs income to be able to develop a society. Too bad we have politicians who thinks more about their own interests than the good of all citizens.
Thank you so much for explaining that.
You welcome! Thanks for watching the episode :)
Ah, history taught in an informative and entertaining manner! A great combination. Keep up the good work.
Take care and ha det bra, Pål!
Thanks Mike! I thought a bit of entertainment would make it less "dry"... I'm glad it worked!
Very very good and intelligent people Norwegians are. Their politicians do not steal they do their job. I am from Croatia our situation is the opposite. so we are poor all the time.
Yes we were fortunate to have politicians with integrity back then! Sorry to hear about your home country
Thank you for sharing this informative well documented and edited commentary!
You welcome, thanks again for watching!
Hey pal, Thank you for this video. I had an exam on this and my lecturer recommended a confusing video but yours was easier to comprehend, the exam went so great btw soo Thank youu❤
Hei hei! That’s great to hear. I hope you’ll get a good grade
@ Thank you so much
I hope I can meet him myself now, my dad told me about his story long ago, I was shocked once he told me that we are related to Farook Alqassim!
He met him in the 80s in Kuwait with my Grandfather.
He is my father’s cousin, which means my grandfather is his uncle.
if you know someone can reach him my father would be glad and happy to talk to him again or with his family members.
That was really interesting, Pål. I remember you telling us some of it on our tour. Bravo Norway.
Thanks Sue! Yea it's a fascinating story about where we got where we are today.. Luckily we found the oil back in the 60s, as I think our politicians today would have favored a whole lot more privatization.
Very smart, very honest and very good for the locals. I really like Norway 💙
Thanks a lot for your comment(s)! :D
Awesome video, Pal! It's a very informative documentary, and that's how you do it; some people talk about one part for 50% of an entire video and completely miss the main topic. Back in 2014, I had chosen Norway as a country to do an economic project on. (It was a business class in high school, and everyone had to pick their own country and talk about its economy.) Months prior, I'd heard my dad talking about an article in Canada (where I live) and Norway; every citizen profits from the petroleum industry. Well, the first part was false, and I wish it was real... Canada, in my opinion, has more oil and gas than Saudia Arabia and Venezuela. Besides, Canada has all kinds of natural resources, unlike the latter. (So much yet to be discovered in the Arctic Circle alone.) I heard about Norway's phosphate discoveries as well.
I wish my country managed to adopt your homeland's way of doing things, but I understand there are many caveats to it, such as the difficulty of oil sands, geography, political will, etc.
Correct me if I am wrong, but I heard your country hopes to use the fund $$$ in coming decades from now to build advanced factories for future generations? Also, why doesn't Norway build skyscrapers like Russia and some other places do? (Lakhta/Gazprom tower centre, etc.)
Hi there, thanks for your comment! Political will can stand in the way of many good ideas. Luckily we had some wise politicians back in the 60s-70s- when the state took control over the oil resources.
We only use 3-4% of the revenue every year and it goes into the state budget. The rest is saved, and I belive that is the plan for now.
We are not so fond of skyscrapers here in Norway. We rather see the green trees and the blue sea ;)
A very interesting success story
Very informative and interesting presentation. An excellent presentation that tells the story of Norway's wealth and how they are using the funds for the good of the people. Keep up the good work Pal.
Tusen takk John! Glad you enjoyed it :)
Very good! Thank you for this presentation and information.
You welcome! Glad you liked it :)
I share your view on oil production but this video just makes me admire your government even more. If only all governments were so honest and caring of the people who elect them.
Yea that would have been something... I feel sometimes the world is getting more and more corrupt though, and more managed by the interest of global corporations.. even here in Norway. Good thing we found the oil back in the 60s.
@ I hope your leaders manage to hold on to their integrity.
@@twelvesmylimit I sure hope so too!
Thank you Pal for this interesting video and history lesson. I am in awe of the Norwegian people and their good governance. I think much of this comes from the wonderful characteristic and temperament of its people which you also seem to exemplify. Your videos keep making me want t more and more to visit your country and meet its wonderful citizens. Thanks again for your postings.
You welcome! Thanks for all your thoughtful and nice comments 👍
Thank you very much for your video! It's a privilege for you guys to live in a country where the politicians (no matter of which party) are thinking about the citizens more than anything else. Besides this is the meaning of the Democracy: the people are the State. Not even in my country this can be achieved... Greeting from Athens, Greece.
Hei Talos, thanks for watching the episode! Yes we are very fortunate that we had some very clever politicians back then. And also that we still have politicians that can agree on some long term goals no matter what their party is
This is really interesting, I knew much of the base info as I work for a place with many ties to Norway, but the detail filled in gaps. Interesting thing I noticed when in Norway a few years ago, you seem to have the most electric cars of any place I have visited. I couldn't help but thinking of the disconnect between oil fueling the ability to purchase pricy electric cars.
Hei John, you are right, it's a paradox that we have such a high percentage of electrical cars, but at the same time we are not a very green country... I think there is a lot of awareness about this, but it's definitely a discussion we will see more and more of in Norway in the future. Many of the youth parties of the leading political parties want to see an end to the oil production, and we might be heading in that direction sooner that many would like to think. Glad you enjoyed the video! :)
I’m an American 🇺🇸 but my great grandparents came from Norway 🇳🇴
Shows good management can grow wealth
Yep that's true.
liked it so much!
Thanks!
Un ejemplo a seguir para todos los paises del mundo , para que los recursos se utilicen para el bien común , algún día visitare Oslo , lo conozco por videos y tiene todo lo que me encanta para vivir, sus parques ecologicos , lagos , museos , bibliotecas , ríos , zonas de esquí en montaña , fiordo para nadar y navegar y su transporte publico de calidad , saludos desde el salvador .
Muchas gracias :)
Haha, this is so incredible well done my friend 👏🏻 The amount of time finding all the sources and put it together this great just blows my mind 🔥 I have worked some year in the North Sea, mostly on the Oseberg platforms, I did know some of this, but you manage to educate me on some details there. Good on you mate 👏🏻 Thank you
Thank you! Finding the clips took more time than filming AND script together..hehe.. Cool that you have worked on the platforms, it would have been really fun to be able to visit one :)
@ Well, that is much easier said than done... it is really strict rules for that, if you don't have any work, and you need to have the safety course with the helicopter roll before allowed out. You can off course look closer at it, but guess it is more trouble than it's worth. I have been to almost every platform in the north sea... The bottom of the Troll A shaft is insane 👏🏻
@@tshansen Aha I see, not so easy then... But there is probably a big market for "platform tourism" :D Something Norway can live from when the oil era is over ;)
@ Have you ever visited the petroleum museum in Esbjerg in DK? They have some huge parts of old oil rigs on their display 👍🏻
@@tshansen No I have not! But now I have a reason to go there. Thanks for the tip. I've only been to the oil museum in Stavanger.
Respect for the norwegian people.
Paul, please man, why not mentioning farouk al kasim and what he did to norway?
Well said 👏
Please care the Palestinians ❤
Very well done. So - when can we immigrate? My father's whole family came to the US from Sweden's Gotland Island but at least we love herring. Probably not close enough huh.
Thanks Tom! If it was up to me I'd let you immigrate anytime you'd like :) Gotland seems a fascinating place, and looking forward to sailing there some day
It's sad to think Brazil could have followed the same path if it wasn't the military dictatorship. We did a small progress between 2005 and 2010, but then the oligarchs made their moves behind the scenes and now even those near misery are supporting their politicians. What makes a country rich is to invest in well being of its people, not giving 99% of country's wealth to the 1% of population. Norway did well to take the right decisions at the right time.
Yes we were lucky to have good leadership back then. I’m sorry Brazil did not see the same use of its wealth…
Veldig bra 👍👍👍
Mange Takk :)
Hi nabo. I'm dansk and grown up in the 70ties on Esso, which became Norges company in early 90ties after USA sold it. Don't know why. But it was rich in the 80ties. Remember that so clearly. Now, after norge bought it, it's just a shadow of itself. So much of it is locked down. My parents tryed to continue on the gas station by getting statoil into court. They lost, and norge just reduced everything. Even the home I was grown up in. Do you know what happened more closely in the Earl 90ties?
Hi Nickey, sorry to hear about your parents loss. I have to admit I'm not expert on the history of the company Esso, and you probably know more than I do. We used to have an Esso close to where I live, but it disappeared a few years ago
@ thanks for your answer anyway 😊 I had just wondered about why norge went so minimalistic for their gas station for years. Seems I must continue to think it's weird for further years. Hahaha.
@@nickeypetersen5622 hehe.. well most of them were taken over by Circle K, a Canadian company. Or the food section is run by 7-11, Deli de Luca etc, but then the pumps are served by an oil company
@ hello again. I don't know this circle k. But everybody know 7 11. Shouldn't surprise me if they also have a shop on the moon. But my logic tell there is a lack of customers. Haha. Well, at least you know Esso existed in different from you getting people... Hope you don't mind I will show you a scary thing, because this is reality.... Try in search field write, how one company can rule a entire country. Shell in Nigeria... It's hard to look at. I know this because, jenten min er fra Nigeria. I had to know her life ofcourse. This company is a kind of hell.
@@nickeypetersen5622 haha I bet there is a 7-11 on the moon, next to a Tesla dealer and an Amazon warehouse 🤣
Yea some oil companies have claimed too much influence, and even got some blood on their hands. I'll make that search and see what pops up. Have a nice day
👌👌
HOW MUCH DOES NORWAY HAS OIL AND NATURAL GAS RESERVES,SOME SAY THAT NORWAY HAS MORE OIL RESERVES THAN SAUDI ARABIA ,PLZ REPLY IN DETAIL,THANX
Hi Khurram, you can find statistics here : en.m.wikipedia.org/wiki/List_of_countries_by_proven_oil_reserves
Most likely Norway will have oil and gas reserves for as long as there will be a demand for it. Considerable areas of the North Sea has not yet been explored
Can I do a work contract visa, knowing that I am a welder of gas and oil pipelines?
You'll have to contact UDI about this: www.udi.no/en/
@ Thank you very much my friend
The entire norwegian oil program is due to the efforts of the Iraqi Farouk Al - Kassim. Strange you are not mentioning him, he put the plan and made the 10 oil commandments and was the man and mind behind the norwegian oil program.
Shame you are not mentioning him
Yes I should have mentioned him. Perhaps in another episode. Happy New Year to you.
You should remember the Iraqi scientist who made this happened. His name is Farooq Qasim read about it 1969
Pal, let me tell you one thing too...is awesome to have grate politicians as you have in norway...but on thing is for sure: norway is in europe and occident countries have status quo With US and the UK. If some latinamerican or african country, tax 70% an anglo oil company, in 3 months there is a dictatorship goverment ....its a shame, but a true one
Hi German, yes you are right, we probably have higher tolerance for tax here. But I also think that what we achieved back in the 70s-80s, would not have happened today. There would have been much more privatization (and lower taxes).. Thankfully we found the oil while Norway was a very strong social democracy
I have to wonder how much different the mindset of a typical Norwegian is today as compared to the parents of the family i lived with who grew up in the depression and were young adults at the end of WW II.
Hi Michael, that is a good question, but I don't think I have a very good answer... I think Norway's wealth has changed us quite a bit though.. in terms of not being as modest as we once were
Hi, I am about to start working with Norwegian multinational crude oil inc. My question is does this entreprise really exist? I am afraid it's a fake one, and got through fake job interviews.
I don’t know, but I can’t say I ever heard about that company name
I'm still curious about how Norwegian people spend the oil money, like people from Dubai or Saudi Arabia spend it's oil money for luxury things.
Anyway great video!
Hi Mukhammad, compared to other countries in Europe, Norwegians have a pretty high standard of living, but in the same time it does not come across as luxurious. But a lot of people can afford having a cabin, a fancy car (MANY Teslas here) and travel abroad for vacation several times of year. Also remember that most of the oil revenue goes to the state, so we don't have any "oil billionaires" like you see in other oil producing countrires where private corporations end up with most of the profit.
Thanks for watching the video!
@ nice, and i saw both of Norwegian government and people also having a good financial management. Like they don't build any tallest buildings, man-made islands, buying fancy cars, gold ATM, gold plated dinner, hosting annual sport events, etc. Norway is better than Gulf countries for managing it's oil money
@@lemagnifique1573 Yes I think you are right... the money is spent mainly towards good infrastructure, health care, social services, culture etc. We probably all have something to learn from each other :)
is just a matter of having alot of oil. yes, yes it is.
having a lot of it, and managing it well I guess
Unfortunately you missed to mention the role played by Iraqi Immigrant name FAROUK AL QASSEM
It's a shame we can't import a few of your politicians en-masse to other countries. I can only wish you continued successes as a nation in everything you collectively do. I'm an American and can only shake my head and sigh when considering how we've mismanaged our own country!
Hi Paul, yes we've been mostly very fortunate with our politicians. Especially at those important times for our nation back in the 60-80s. Hopefully it can inspire other countries around the world.. Thanks for watching the episode, Pål
It is socialism in practice.
@@exentr neh, soisal capetalisme, is more correct.
This year - in July - we are going to visit Norway (for the first time). Three reasons: 1) sight seeing, 2)hiking 3) to see with our own eyes that such a wonderful place (with honest and responsible people and politicians) really exists on our planet 😉
Yay! I hope you’ll have a great stay 🙏👍🇳🇴 I do believe they exist here ;)
you will regret. money wasted. People are unghinged, unmannered, cold and wont care too much about foreigners. There are 1 season : shitty weather. Politicians are corrupt and only 2023 alone the country has found 3 ministers in power, and some of their spouses to be directly stealing from the people. Oh and their upcoming non royal rave partying queen, has been to epstein island a number of times with the citizens tax money but thats okey because Norway has no bad people right, were all white ! hahaha... do not fool yourself.
@@TheCriticalAnalyst I have already visited Norway and I liked it a lot. Nice, civilized, friendly people everywhere I went. The nature is beautiful. And their politics of spending their oil money for the citizens of the country rather than making a few billionaires (like USA) is brilliant. Their GINI index is one of the lowest in the world - in other words there are fewer poor people. Do google the GINI index before talking nonsense. In the USA - where you are likely from - ALL politicians steal from the people.
Argentine people and Argentine politicians should wacht and learn from that.
I think so too.. All though I am not sure if Norway would have taken the same good choices today, as we did back then. Times have changed and the "free market" has become more important
@ You’re right, times have changed: in my opinion free market policies don’t necessary mean more sustainable citizenships. But we Argentines lost our chances many years ago. Decades passed, problems are always the same. No one can think beyond partisan slogans, beyond next week. In the meanwhile, the country is being torn apart. And nobody seems to care about it. Winning next election it’s the only thing that matters.
@@redfive5123 Yea.. the free market only works if it is heavily regulated.If not the rich uses it to their advantage.
I know a bit about the economical hardships in Argentina, you've gone through hard times for sure, and I guess things aren't looking so bright nowadays either.
El tema aca también es donde esta noruega....ojalá tuviésemos la mitad de la intrigas y honestidad de los políticos noruegos....pero por otro lado, sabemos que hay un status quo en Europa que no se toca...en cualquier país latinoamericano pones 70% de impuestos a las petroleras y tenemos un golpe de estado a la semana. Lamentablemente eso también nos afecta
what is Norway's position concerning oil and climate change? Is there still a huge supply of untapped oil in the North Sea? What does Norway intend to do about this? Will Norway eventually stop drilling for oil and develop cleaner energy sources?
Hei Louise! Personally I would like to the see the oil being phased out and replaced by energy sources with less (or none) carbon emission. However, In Norway right now there is no political majority for this to happen, so there is no "end date" set for producing oil. Our oil production did peak a few years back, so whether we like it or not we will have a declining production in the coming years. There is a growing opposition in Norway who wants to end our oil industry, but as I said they are not in majority, but changes are definitively coming, many of the youth parties of the bigger established parties are not in favor of oil. So perhaps a glimpse into a greener future.
@André See my reply to Louise. I could almost make a separate episode about this. And you are right... Norway is a very "oil dependent" economy, and it's hard for many politicians and people to envision a Norway without oil production. Let's see what the future brings.
When the oil runs out, Norway will still have 1.2 trillion dollars in the fund! I believe Oslo has banned cars in a large downtown region.
Yea, and the fund is growing at an incredible speed :o
Many streets downtown that used to be open for cars are not anymore. Most people prefer to not drive downtown anymore as it's hard to get around and also expensive or no parking. Better to bike or take public transport :)
@ Does the $1.27 Trillion fund invest in Oil stocks? Exxon, etc.
@@johnlindstrom9994 In 2019 it was decided that the fund is NOT to invest in oil companies that only searches for and produces oil. I think around 130 companies were taken off the list back then. Exxon, Shell were not one of them as they also have other energy producing activities.
Personally I think within few years the fund will withdraw its investments from all companies involved in the oil business, no matter what else they are doing. This was actually the suggestion from Norges Bank who manages the fund, but there was no political majority
I would like to point out the obvious because it rarely gets the attention it deserves…
Not one kroner of that wealth would be where it is now had Norwegians been raised to think differently.
The wealth and standard of living are a product of a particular style of thinking, not as a product of gold.
And that can easily change if the thinking of the people change.
Change in thinking comes hand in hand with exposure to new ideas and influences.
So be careful how you learn to think.
Yes I think you are right about that. We had politicians back then who made the right choices. If we found the oil today the outcome would probably have looked quite different
@ Let’s hope fiscal discipline and accountability remains transparent and guided with wisdom.
bro not giving the credit to Farouk Al-Kasim for 10 oil commands is mad.
Mad? It was Rolf Hellem from the labour party who wrote those 10 rules. Farouk Al-Kasim has for sure played an important role, but my goal with this episode was not to mention all the people the has contributed to the Norwegian oil exploration. Maybe in a future episode.
But politicians always fail. The Norwegian government gave away the fish resource to fish obligarcs. The fish recourse may be more valuable than the oil because the fish recourse are renewable. Sustainable catch may save the fish forever. This wealth fell into the hands of Norwegian obligarcs. The politicians learned nothing from the petrolium recourse.
Yes agree, I wish the fish resources would have been handled in a similar way as the oil. It's unfortunate how a few are making huge amounts of money from something that belongs to the people.
Who discovered oil in Norway?
Esso 1967
@ thank you.
so the question is ..whats wrong with our politician. with all the oil this country as why is american paying 5 dollars a gallon for gas?
I guess politicians are just like most people, full of mistakes 😂
But on a serious note, I see your point.. Politicians are often well paid, and it’s hard for them to see the struggle of everyday people I think.
That said, from what I see, having a globalized world doesn’t necessarily make a resource cheap in its own country since Everything is traded back and forth with other countries
Johnny please look at the cost of a gallon of gas in Norway, I think you will be surprised.
as usual Farouk not mentioned maybe because his name or because he is a muslim
Of course not. I should have mentioned him, and will do so if I produce a similar episode.
Norge tjener milliarder på energi priserne, på grund af krigen i Ukraine, de må give mere til Ukraine, Norge er et af verdens rigeste lande.
Ja man får se hva tiden fremover bringer, men de som tjener mest må helt klart bidra mest.
We in the USA would benefit from politicians like those in Norway. Instead we get people like Trump.
Thanks to a Muslim
Muslim or Christian.. we are all just people
farouk al kasim
iraqi man made norway so rich
Why did you not mention anything about Farooq Al Qasim from Iraq, he is the one who personally found the oil in Norway and thus making it rich!!!!!!!
Evil of you to cover such an important event in norways history!!!
A very interesting success story
I think so too :)