Editing Economy of Norway (section)

===Petroleum and post-industrialism===

====Oil-exporting country====
{{main|Energy in Norway}}
[[File:Oil production Norwegian North Sea.PNG|thumb|Oil production, Norwegian sector; Source: Statistics Norway]]

In May 1963, Norway asserted sovereign rights over natural resources in its sector of the [[North Sea]].  Exploration started on 19 July 1966, when [[Ocean Traveler]] drilled its first well.<ref name=":1">{{Cite web |title=Norway's petroleum history |url=https://www.norskoljeoggass.no/en/about-us/oljehistorien/ |access-date=2022-04-12 |website=www.norskoljeoggass.no |language=en |archive-date=27 July 2022 |archive-url=https://web.archive.org/web/20220727091611/https://www.norskoljeoggass.no/en/about-us/oljehistorien/ |url-status=dead }}</ref> Oil was first encountered at the [[List of oil and gas fields of the North Sea#Northern North Sea 2|Balder oil field]] at flank of the [[Utsira High]], about 190&nbsp;km west of [[Stavanger]], in 1967.<ref name=Riberetal2015>{{cite journal |last1=Riber |first1=Lars |last2=Dypvik |first2=Henning|last3=Sørlie |first3=Ronald |date=2015 |title=Altered basement rocks on the Utsira High and its surroundings, Norwegian North Sea |url=http://njg.geologi.no/images/NJG_articles/NJG1_Vol95_1_Riber_Pr.pdf |journal=[[Norwegian Journal of Geology]] |volume=95 |issue=1 |pages=57–89 |access-date=3 February 2018}}</ref> Initial exploration was fruitless, until [[Ocean Viking]] found oil on 21 August 1969.<ref name=":1" />  By the end of 1969, it was clear that there were large oil and gas reserves in the North Sea.  The first oil field was [[Ekofisk]], produced {{convert|427442|oilbbl}} of crude in 1980.  Since then, large [[natural gas]] reserves have also been discovered.

Against the backdrop of the Norwegian referendum to not join the European Union, the [[Norwegian Ministry of Industry]], headed by [[Ola Skjåk Bræk]] moved quickly to establish a national energy policy.  Norway decided to stay out of [[OPEC]], keep its own energy prices in line with world markets, and spend the revenue – known as the "currency gift" – [[The Petroleum Fund of Norway|wisely]].  The Norwegian government established its own oil company, [[Statoil]] (now known as Equinor), and awarded drilling and production rights to [[Norsk Hydro]] and the newly formed [[Saga Petroleum]]. Petroleum exports are taxed at a [[Tax rate#Marginal|marginal rate]] of 78% (standard corporate tax of 24%, and a special petroleum tax of 54%).<ref>{{cite web |url=http://taxsummaries.pwc.com/ID/Norway-Corporate-Taxes-on-corporate-income |title=Norway – Corporate – Taxes on corporate income |access-date=2018-01-14 |url-status=live |archive-url=https://web.archive.org/web/20180114140733/http://taxsummaries.pwc.com/ID/Norway-Corporate-Taxes-on-corporate-income |archive-date=14 January 2018 }}</ref>

The North Sea turned out to present many technological challenges for production and exploration, and Norwegian companies invested in building capabilities to meet these challenges.  A number of engineering and construction companies emerged from the remnants of the largely lost shipbuilding industry, creating centers of competence in [[Stavanger (city)|Stavanger]] and the western suburbs of [[Oslo]].  Stavanger also became the land-based staging area for the [[offshore drilling]] industry. Presently North Sea is past its [[peak oil]] production. New oil and gas fields have been found and developed in the large Norwegian areas of the [[Norwegian Sea]] and the [[Barents Sea]], including [[Snøhvit]].

====Reservations about European Union====
[[File:Exports and imports as pc of GDP 1865 2003.PNG|thumb|Exports and imports in Norway]]
In September 1972, the [[Stortinget|Norwegian parliament]] put to a referendum the question whether Norway should join the [[European Economic Community]].  The proposal was turned down with a slim margin.  The Norwegian government proceeded to negotiate a trade agreement with the EU that would give Norwegian companies access to European markets.  Over time, Norway renegotiated and refined this agreement, ultimately joining the [[European Free Trade Association]] and the [[European Economic Area]].

Although Norway's trade policies have long aimed at harmonizing its industrial and trade policy with the EU's, a new referendum in 1994 gave the same result as in 1972, and Norway remains one of only two [[Nordic countries]] outside the EU, the other being [[Iceland]].

Although much of the highly divisive public debate about EU membership turned on political rather than economic issues, it formed economic policy in several important ways:
* Both politicians and the public came to terms with the fact that Norway's economic development was dependent on taking advantage of its [[comparative advantage]] by specializing in certain areas for export and relying on import for everything else.  This has had a significant effect on Norway's agricultural policy, which has been reshaped to address population patterns rather than self-sufficiency.
* The proceeds from oil revenue could not fuel private or public consumption if Norway were to sustain its prosperity when [[oil reserves]] run out.
* In order to participate in European markets, Norway has had to open its domestic markets to European imports.  Although some pricing and distribution issues (e.g., alcohol and automobiles) remain unresolved, Norway's consumer, capital, and employment markets are increasingly approaching those of Europe in general.{{citation needed|date=August 2014}}{{clarify|post-text=Prices are very high in Norway!|date=August 2014}}

Norwegians have sought accommodations on a range of specific issues, such as products from fish farms, agricultural products, emission standards, etc., but these do not appear to differ substantially from those sought by bona fide EU members.  It is expected that the issue of membership will be brought to a referendum again at some point.

====Post-industrial economic developments====
[[File:GDP Norway 1865 to 2004.PNG|thumb|GDP growth 1865–2004]]
Several issues have dominated the debate on Norway's economy since the 1970s:
* '''Cost of living'''.  Norway is among [[Cost-of-living index|the most expensive]] countries in the world, as reflected in the [[Big Mac Index]] and other indices.  Historically, transportation costs and barriers to free trade had caused the disparity, but in recent years, Norwegian policy in labor relations, taxation, and other areas have contributed significantly.
* '''Competitiveness of "mainland" industries'''.  The high cost of labor and other structural features of the Norwegian environment have caused concern about Norway's ability to maintain its standard of living in a post-petroleum era. There is a clear trend toward ending the practice of "protecting" certain industries (''vernede industrier'') and making more of them "exposed to competition" (''konkurranseutsettelse'').  In addition to interest in information technology, a number of small- to medium-sized companies have been formed to develop and market highly specialized technology solutions.
* '''The role of the public sector'''.  The ideological divide between socialist and non-socialist views on public ownership has decreased over time.  The Norwegian government has sought to reduce its ownership over companies that require access to private capital markets, and there is an increasing emphasis on government facilitating entrepreneurship rather than controlling (or restricting) capital formation.  A residual distrust of the "[[profit motive]]" persists, and Norwegian companies are heavily regulated, especially with respect to labor relations.
* '''The future of the welfare state'''.  Since World War II, successive Norwegian governments have sought to broaden and extend public benefits to its citizens, in the form of sickness and disability benefits, minimum guaranteed pensions, heavily subsidized or free universal health care, unemployment insurance, and so on.  Public policy still favors the provision of such benefits, but there is increasing debate on making them more equitable and needs-based.
* '''Urbanization'''.  For several decades, agricultural policy in Norway was based on the premise of minimal self-sufficiency.  In later years, this has given way to a greater emphasis on maintaining population patterns outside of major urban areas.  The term "district policy" (''distriktspolitikk'') has come to mean the demand that old and largely rural Norway is allowed to persist, ideally by providing them with a sustainable economic basis.
* '''Taxation'''.  {{Main|Taxation in Norway}} The primary purpose of the Norwegian tax system has been to raise revenue for public expenditures; but it is also viewed as a means to achieve social objectives, such as redistribution of income, reduction in alcohol and tobacco consumption, and as a disincentive against certain behaviors.  Three elements of the tax system seem to attract the most debate:
**[[Progressive tax]]ation.  At one time one of the most aggressive in the world, the top marginal tax rate on income has been decreased over time.  In addition, Norwegians are taxed for their stated net worth, which some have argued discourages savings.
**[[Value-added tax]].  The largest source of government revenue.  The current standard rate is 25%, food and drink is 15%, and movie theater tickets and public transportation 12%.
**Special surcharges and taxes.  The government has established a number of taxes related to specific purchases, including cars, alcohol, tobacco, and various kinds of benefits.
**[[Svalbard]]. People living on Svalbard (Spitsbergen) pay reduced taxes due to the [[Svalbard Treaty]].
*'''Environmental concerns'''. A number of political issues have had their origins in ecological concerns, including the refineries at [[Mongstad]] and the [[Alta controversy|hydroelectric power plant]] at Alta.
[[File:2006Norwegian exports.PNG|thumb|right|Norwegian exports in 2006]]