Photo: Oyving Hagen Archives Scanpix Norway/AFP
Norway is the largest producer of hydrocarbons in Western Europe.
The largest sovereign fund in the world, that of Norway, itself fuelled by petrodollars, will divest from oil companies in order to reduce the exposure of the scandinavian countries to the black gold, has announced the Norwegian government on Friday.
If this decision is dictated by financial considerations and not environmental, the disengagement of an investor who weighs more than 1000 billion dollars will nevertheless be certainly seen as a great blow to fossil fuels, polluting. “The goal is to reduce the vulnerability of our common wealth in the face of permanent reductions in the price of oil,” said the minister of Finance, Siv Jensen, in a press release.
This decision, which focuses on “companies for exploration and production of oil follows a recommendation by the Bank of Norway. Responsible for managing the huge wool socks, commonly called… “oil fund”, it had caused a sensation in November 2017 and by advocating for an output of values related to the black gold to reduce the exposure of public finances to a sharp decline in courses such as that seen in 2014.
Norway is the largest producer of hydrocarbons in Western Europe. Oil and natural gas account for nearly half of exports and 20% of the revenues of the State, which will contribute to the sovereign wealth fund where Oslo then draws to fund its budget.
At the end of 2018, the fund had approximately $ 37 billion of shares in the sector, with the participations of weight in Shell, BP, Total and ExxonMobil in particular.