(THIS ARTICLE IS MACHINE TRANSLATED by Google from Norwegian)
Most people may think that the oil industry on the Norwegian continental shelf is doing well on its own. It doesn't quite fit. The industry is subject to a number of special advantages that are not seen in other parts of Norwegian business and industry. Through the exploration reimbursement scheme, free income and generous depreciation rules, the oil industry receives in reality huge subsidies each year.
New times. The oil subsidies may have worked well for many years, but they will not do so in the future. Both companies and consumers are becoming increasingly concerned about green new investments, and the oil industry is becoming a less favored investment object every year. The Paris Agreement has stipulated that global warming should be limited to 1,5 degrees, and that we are moving towards a new world order based on green, renewable energy.
Valuable expertise and manpower are tied up in a dying oil industry when we need more to develop green technology.
The danger of subsidizing a dying industry is obvious: we risk making big investments that may not be profitable, in an industry that, in the worst case, must be closed down in not so many years. Recently, the debate on the Goliath field has shown us that not all investments by the state in oil and gas benefit the rest of society. This means that in practice we sponsor oil companies that emit a lot of greenhouse gases, without society earning anything from it.
Lack of recognition. But at least it creates jobs, you might think. The problem is that it ties up valuable expertise and manpower in an industry that will not live for so many more years, and that is when we need more wise heads to develop green technology.
The agreement among the major parties in the Storting about the oil subsidies is striking. Few people dare admit that Norwegian climate policy must also have consequences for our oil policy – the oil companies win, but it does not benefit our society.
