Master, Not Servant: How Norway Tamed Big Oil Without Scaring It Away
Key Takeaways The Paradox: Norway imposed some of the world's toughest terms on oil companies – and they kept investing anyway. The 78% Take: Norway captures ~78% of oil profits through taxes and ownership, far above the global average. Staged Escalation: Norway started with generous terms, then tightened as expertise grew and investments became sunk costs. Technology Transfer: Every foreign contract required training Norwegians and using local suppliers – building domestic capability. The National Champion: Statoil (now Equinor) gave Norway inside knowledge of what was actually profitable, preventing industry bluffs. When multinational oil companies arrive in a developing country, the script is familiar: “Give us favorable terms, or we’ll invest elsewhere.” The implicit threat works. Countries compete to offer the most attractive deals, racing to the bottom while oil majors capture the lion’s share of value. ...