Norway. Natural gas vs crude oil 1:0
It has happened! According to the analytic data this year (probbly first time in history) will see Norway profiting more from the export of natural gas than crude oil. It is common knowledge that this is a side effect of unstable low prices of crude oil in the world which have prevailed since the beginning of 2015.
As estimates show, the total sale of natural gas in 2015 will reach the worth of EUR 25.2 billion as compared to EUR 23.4 worth of crude oil.
Economy of Norway runs on crude oil and this why it has slowed down in the first three months of 2015. And it is no wonder, over a year ago oil cost more than $100 a barrel (159 liter) whereas now half the price.
The unemployment rate – lowest over the past 11 years – is an evident result of the disturbances in Norwegian economy. It will most likely exceed 4.5 per cent at the end of the year. According to Norwegian statistical data there were 93,000 unemployed registered in August. Nearly 22,000 people lost their job in the oil industry or were transferred to so-called ‘permittering’, that is a rest period during which an employee is entitled to the unemployment allowance even though they are formally employed and are considered to resume their positions if there is enough workplace or new assignments turn up.
Economic slowdown will also be suffered by those receiving their wages in Norwegian krones. A Norewgian currency systematically weakens against a dollar, euro, Polish zloty or Swedish krone. The last time when a Norwegian krone was so weak in comparison to a Swedish one was 15 years ago.
It is worthwhile to follow the news regarding Norwegian economy, especially if we are related by business with this country. All the more so because almost all analysts agree that economic slowdown will affect the Norwegian national budget and this may mean budget cuts next year.