Mummelmann said:
Back home (in Norway), the effect of this would be much more severe since oil and gas companies are more or less state-owned and the industry makes up about 35% of the total GDP. The state would essentially tank (pun intended). In a market where the interest and ownership are largely private though, the consequences are much less dire. So, yeah, I think and hope you're right. The oil industry has extremely high profitability and productivity rate per capita and employee, so the actual number of layoffs would be much smaller than if another sector or industry was hit as hard. |
You finally made me post here because there are so many half truths and falsehoods in this post that I had to address it...
The oil industry makes up 14% of GDP and 19% of government tax revenue, plus a few percentage points for offshore service industry. (https://www.norskpetroleum.no/okonomi/statens-inntekter/)
Of the many oil companies that operate in Norway, the government has a significant ownership in one of them (Equinor), where they own 67%.
In addition, over 50% of petroleum exports from Norway aren't oil, but natural gas, where the price has fallen much less.
Last edited by Teeqoz - on 21 April 2020
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