The Norwegian Oil Fund
A guide for newcomers about how the Norwegian Oil Fund (the world’s largest sovereign wealth fund) supports healthcare, education, and infrastructure.
Norway’s Oil Fund—formally known as the Government Pension Fund Global—is the largest sovereign wealth fund in the world. If you’re new to Norway, it’s helpful to know how this fund supports public services like healthcare, education, and infrastructure.
History and background of Norway's oil fund
Norway hasn't always been a wealthy country. Its transformation began in the late 1960s when oil was discovered beneath the North Sea.
After the Dutch discovered oil in the 1960s, Norway started exploring the natural resources of its coast as well. In 1969, American company Phillips discovered one of the largest offshore oil fields in the world. Production from this field (Ekofisk) began in 1971 and it is expected to be running until 2050.
This discovery created enormous wealth in a very short amount of time. The state-owned oil company Equinor (previously Statoil) was established in 1972, with the principle that 50% of each oil license should be state-owned. The Norwegian government currently owns 67% of Equinor, ensuring that oil profits benefit the public.
To manage this wealth responsibly, the Norwegian government established the Government Pension Fund Global (colloquially known as “the oil fund”). The oil fund invests surplus revenue from the petroleum industry to secure long-term financial stability for future generations.
There is strict control over the oil fund, and a high level of transparency. The fund is tightly regulated and highly transparent. It is managed by Norges Bank Investment Management (NBIM) and follows strict ethical guidelines, avoiding investments in industries like tobacco or weapons.
While oil wealth has contributed to Norway’s prosperity, the foundations of the country’s social model—including universal healthcare, education, and welfare—were laid long before oil was discovered. The Oil Fund helps sustain these services today, supporting everything from pensions and unemployment benefits to infrastructure and public health.
Recent public debates surrounding Norway's oil fund
Recent years has seen continuous public debates about what will and should happen regarding further extraction of oil. These debates have centred around both the ethical aspect of the industry, as well as the question of how Norway can remain wealthy after putting a stop to the oil and gas extraction.
These issues were especially relevant in the public debate in Norway and internationally around untouched oil resources in the Arctic in 2019, and the development of the Rosebank field in the North Sea.
Key facts and figures: The Norwegian oil fund...
- owns 1.5% of all public companies in the world, with over 9,000 stocks in 69 countries.
- is the largest owner of European stock.
- owns stocks in thousands of individual companies like Apple, Amazon, Unilever, Microsoft, and Visa.
- owns hundreds of properties and real estate in cities like London, New York, Berlin and Tokyo.
- aspires to invest ethically and responsibly. This means that they do not invest in companies like tobacco producers that cause harm to the environment.
- transfers at most 3% of its worth to the Norwegian budget each year. This money supports social services like healthcare, unemployment benefits, pensions, infrastructure projects and education.
Norway is the 8th largest producer of oil and 3rd largest producer of natural gas in the world. The oil industry accounts for 40-70% of all of Norway’s export.