The oil and gas industry has a strong position, not just at the west coast of Norway. Recent numbers show that as many as 45,000 people in Oslo and Viken counties have connections to the industry.
This emerges in a report prepared by Menon Economics on assignment from Norwegian Oil and Gas. The report maps both the economic and employment ripple effects of the petroleum activity in Norway.
“Everyone knows the industry is the source of many jobs in Western Norway. But I don’t think as many are aware of how many ‘oil workers’ we have here in Eastern Norway,” says Kristin Færøvik, Managing Director of Lundin Energy Norway.
Overall, calculations show that the oil and gas industry provides jobs for around 205,000 people. If we distribute these jobs by county, Rogaland and Vestland obviously come out on top. However, the next two spots are occupied by Viken and Oslo, with a total in excess of 45,000 people. These people work in oil companies, in the supplier industry, or in companies that provide goods and services to the oil industry.
“With these high numbers, I think we can say that almost everyone in Eastern Norway knows at least one ‘oil worker’. But since we don’t have many shipyards, vessels or platforms in this part of the country, we’re not so easy to spot,” says Kristin Færøvik.
Lundin Energy Norway is one of just two operating companies with headquarters in Eastern Norway.
Significance for the country
Menon’s report shows that the petroleum industry still generates the greatest value in the country, by far, with a total value creation effect of nearly 600 billion kroner in 2019. About half of this, 310 billion, was tax revenues in the form of personal taxation, company tax and petroleum tax which the oil companies pay to the Government Pension Fund Global (the Petroleum Fund).
The percentages for 2019 show that around 20% of the State’s revenues came from the oil industry in 2019, and that value creation in the industry accounted for 17% of Norway’s total gross domestic product, GDP.
Graphics: Menon Economics