Norway's Performance on the Resource Governance Index
Norway received a "satisfactory" score of 98, ranking 1st out of 58 countries. It performed well on all components.
(out of 58)
(out of 100)
|1||Institutional & Legal Setting||100|
|1||Safeguards & Quality Controls||98|
Institutional & Legal Setting (Rank: 1st/58, Score: 100/100) learn more
Norway earned a perfect score, the result of a legislative framework designed to create long-lasting benefits to society.
The separate roles of the Petroleum and Energy Ministry, the Petroleum Directorate, and Statoil are clearly defined, and the government has clear rules for managing petroleum income. The Finance Ministry ensures that the state receives all payments from oil companies, which are transferred to a natural resource fund. Expenditures are regulated in order to maintain a sustainable budget and save for future generations. All petroleum revenue, including that of state-owned companies, is included in the public sector balance.
A Freedom of Information Law includes extensive disclosure requirements, and relevant petroleum legislation is easy to access. Environmental and social impact assessments are required before extraction can begin. Norway has been a leader of global transparency initiatives and became an Extractive Industries Transparency Initiative compliant country in 2011.
Reporting Practices (Rank: 2nd/58, Score: 97/100) learn more
With thorough public access to information on the oil and gas sector, Norway received a "satisfactory" score of 97.
Comprehensive information on licenses, including locations, operators, and owners, is made public, and fiscal terms are standardized in Norway's petroleum legislation, leaving no discretion to the Petroleum and Energy Ministry. Environmental and social impact assessments are published online.
Government agencies publish comprehensive information on the industry. The Finance Ministry publishes timely statistics on revenue collection, and the Petroleum and Energy Ministry produces public reports for parliament. The Petroleum Directorate provides comprehensive and timely statistics including data on reserves, export values, investment, production costs, field-by-field production volumes, and disaggregated revenues.
Safeguards & Quality Controls (Rank: 1st/58, Score: 98/100) learn more
Norway's "satisfactory" score of 98 is the product of strict audit requirements and effective checks on petroleum licensing and revenue collection.
Petroleum and Energy Ministry officials are not allowed to deviate from licensing policies defined by legislation, and there is a set process for appealing licensing decisions. Parliament oversees all aspects of the petroleum industry, though lawmakers do not review individual licenses or take part in commercial decisions. Government regulators are independent from state-owned companies, and civil servants are required to disclose potential conflicts of interest.
Independent state auditors review national revenues and the results are reported annually to parliament. Several parliamentary committees are specifically charged with reviewing resource revenues.
Enabling Environment (Rank: 1st/58, Score: 98/100) learn more
Norway was ranked at the top of global measurements of accountability, democracy, and the rule of law.
State-Owned Companies (Rank: 1st/45, Score: 99/100) learn more
Several state-owned companies are active in the extractive industry. The largest is Statoil, which produces 70 percent of all oil and gas from the Norwegian continental shelf. The company is 67 percent state-owned but is subject to commercial regulations and does not participate in policy formulation. As a publicly traded company in Oslo and New York, Statoil must comply with disclosure requirements. It publishes regular audited reports that include comprehensive production data and financial information.
Natural Resource Funds (Rank: 1st/23, Score: 100/100) learn more
All government income from petroleum is deposited in the Government Pension Fund Global, previously known as the Petroleum Fund. The fund consists entirely of resource revenues and the return on its investments. At the end of March 2012 it was valued at $613 billion. The Finance Ministry oversees the fund, with operational management by the central bank. National law clearly defines the rules for deposits, investments, and withdrawals; comprehensive audited reports are published quarterly.
INSTITUTIONAL & LEGAL SETTING
SAFEGUARDS & QUALITY CONTROLS
To explore all data and compare country scores, use the RGI Data Tool.
Key Economic Indicators
|GDP (constant 2011 international $ billion)||214.8||344.3||485.8|
|GDP per capita, PPP (constant 2005 international $)||43,975||47,626||46,982|
|Oil and gas revenues (% total government revenue)||33||30|
|Extractive exports (% total exports)||70||74||74|
|Sources: Oil and gas revenue as share of total government revenue from the Economist Intelligence Unit and the International Monetary Fund. All other data form the World Bank. Oil and gas revenues 2011 data from 2010; Oil and gas revenues 2005 data from 2007.|