Engen, OA; Langhelle, O; Bratvold, R
For many researchers in economics and po liti cal science, Norway serves as the archetypal state that has avoided the resource curse. When discussing whether a state's policies will lead it to become a successful or unsuccessful energy exporter, the common refrain is whether it would like to be "Norway or Nigeria." Hence, Norway appears to be a successful example of how it is possible to develop large- scale oil operations in a way that increases the societal wealth and benefi ts the whole population. Many contemporary studies of the Norwegian oil industry focus on reasons for the absence of "Dutch disease" and why Norway lacks the structural characteristics of a "petrostate." ? In general, the explanations have focused on Norway's "po liti cal foresight" and its ability to build a sophisticated institutional framework.? Th e country's main po liti cal objective has been to further develop the future welfare state through the revenues from the oil business and from the growth of the government pension fund. At the same time, Norway wants to attain the position as a world leader in environmental politics. Due to the tension between climate change targets, biodiversity concerns, and petroleum production, the Norwegian petroleum policy has increasingly been challenged on environmental grounds. A division of interest between the petroleum industrial complex on one hand and environmentalists on the other has emerged to become an important cleavage in the Norwegian po liti cal system. Accordingly, while Norway has succeeded in averting many of the typical traits of major oil- And natural gas- exporting states, a number of perils have also affl icted the state. Chiefl y, a "petroleum industrial complex" has emerged in Norway that has signifi - cant infl uence on po liti cal outcomes in the state. Th e complex has succeeded in blocking any challenge to the predominance of fossil fuel production and consumption in Norway. Second, this complex has also succeeded in foiling many environmental policies, especially in the sphere of combating climate change. If Norwegian oil policy appears successful in a historical perspective, it is a result of the fact that it developed within a demo cratic framework. In the mid- 1960s, the Norwegian po liti cal system faced powerful multinational companies that were known for taking the law into their own hands wherever they operated. Multinational companies had a free rein wherever corrupted po liti cal elites secured control over the channels of wealth. In Norway, strong trade unions, community organizations, a growing environmental movement, and active public opinion contributed to give oil operations a diff erent development trajectory. Th e demo cratic forces, however, could hardly have won out if it had not simultaneously been possible to work together with Norwegian companies and utilize Norwegian technological skills to gain the largest possible share of the Norwegian continental shelf. Th e basic idea of the politics and policies was to ensure that the largest possible proportion of oil revenues remained in Norway. Th e most important tool for achieving this goal was the establishment of the Norwegian state oil company, Statoil, in 1972.? As the oil and gas fi elds on the Norwegian continental shelf have matured, Norwegian and foreign petroleum companies increasingly appear to working as a united front. Th e companies themselves and the suppliers, consul tants, stock traders, and public institutions that work hand in hand with the industry have created intricate industrial networks. Th e privatization of Statoil in 2001, followed by the 2007 merger between Statoil and the secondlargest Norwegian oil company, Hydro Oil & Gas, have further strengthened these networks that constitute dominant power constellations in the country. ? In this chapter, we call these constellations "a petroleum industrial complex." ? Th e Norwegian petroleum industry constitutes a power elite that seeks and possesses po liti cal infl uence on a variety of the state's policy decisions, especially those in the environmental sphere. From this perspective, the Norwegian petroleum industry no longer represents an unambiguous force for prosperity and wealth but a possible threat to a more sustainable future. Th e remainder of this chapter is structured as follows. Th e next section provides a brief overview of the development of the petroleum industry in Norway. Th en we discuss why Norway has managed to avoid the resource curse and the development trajectories that characterize typical petrostates. Th e second half of the chapter focuses on Norway's environmental challenges as a petroleum- producing country. Finally, we question whether the powerful oil and gas industry in Norway reduces the country's legitimacy as an environmental leader in a world increasingly concerned about man- made climate change. Copyright © 2012 University of Pennsylvania Press. All rights reserved.