The management of oil & gas revenue in Norway Essay

The management of oil & gas revenue in Norway - Essay Example The development of Norwegian and Norwegian based petroleum expertise has been an important factor in Norwegian petroleum policy. (Karl 1997) Initially, there was a strong element of knowledge transfer from foreign oil companies and supply/service companies, but today Norway has a highly developed and internationally competitive petroleum industry. This applies to oil companies, the supply industry and research institutions alike. The industry provides a powerful boost for innovation and technology development to other sectors of the Norwegian economy. (Smith 2004: 234)Supply companies in Norway are active along most of the supply chain - from exploration and development to production and disposal. In a number of areas, Norwegian suppliers are among the world leaders, in particular in seismic surveying, subsea installations and floating production systems. They are present in all of the country's counties. Local and regional economies have petroleum activities that extend to a relativ ely high degree even to areas of the country not normally associated with petroleum activities. The Norwegian Directorate of Labour's latest survey, from 2003, showed that more than 75,000 people are employed in the petroleum industry in Norway. (Smith 2004: 234)Al-Moneef (1998) examines the vertical integration strategies of the national oil companies (NOC). With the changes in the market structure from an oligopolistic (international oil majors in control) to a cartel (the governments of OPEC in control) ultimately led to a separation.