The Petroleum Sector and the Norwegian Economy

Abstract

Economic developments in Norway between 2000 and 2014 were marked by the steep rise in oil prices in the same period. Demand from oil companies operating on both the Norwegian continental shelf and in the rest of the world increased sharply, contributing to rapid market growth for Norwegian firms specialising in deliveries to the petroleum sector. In 2014, around 300 000 jobs in the Norwegian economy were likely linked to the petroleum sector, nearly twice as many as at the turn of the millennium. In addition, increased petroleum revenues have provided room for higher consumption. In sum, this has boosted revenue growth for Norwegian firms and pushed up wage growth to a level that has been considerably higher than among Norway’s trading partners. At the same time, developments have been weak for many firms that are exposed to foreign competition, but that do not supply goods and services to the petroleum sector.