Selling Norway's oil shares 'won't save it from fall'

By On August 25, 2018

Selling Norway's oil shares 'won't save it from fall'

Miles Costello

The Times

  • Economics
  • Europe
  • Energy
Norway is Europe’s largest oil producer thanks to the North Sea, with its profits reinvested by its sovereign wealth fund
Norway is Europe’s largest oil producer thanks to the North Sea, with its profits reinvested by its sovereign wealth fundGetty Images

Norway’s huge sovereign wealth fund should hang on to the tens of billions of dollars of shares in oil and gas companies that it holds, according to a government commission that has contradicted earlier findings by the country’s central bank.

The commission said that dumping its energy shares would not protect the $1 trillion fund from a long-term slump in the oil price.

It also said that owning shares in oil majors, such as BP and Royal Dutch Shell, only slightly increased the oil-rich nation’s exposure to fluctuating prices.

Oystein Thogersen, chairman of the commission, said in the report published yesterday: “Divestments of the energy stocks in the [fund] is not an effective insurance against a permanent decline in oil prices. The energy stocks only…

Source: Google News Norway | Netizen 24 Norway

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