ican wrote :
"A government run oil industry will always produces less wealth for a country than will a privately run oil industry. You don't have to look far to discover examples of that. Mexico and Venezuela are two close examples. Nationalization of any industry makes it less productive, less competent, less efficient, less innovative, and less responsive to market demands. "
-------------------------------------------------------------------------------------
seems that the norwegians are of a different opinion :
(from wikipedia)
Norway possesses the second highest GDP per capita in the world, and the highest position in the World on the Human Development Index (HDI) for the fifth consecutive year. The Norwegian economy is an example of mixed economy, featuring a combination of free market activity and government intervention. The government controls key areas, such as the vital petroleum sector and the electricity production. The control mechanisms over the petroleum resources is a combination of state ownership in major operators in the Norwegian fields (Statoil ca 70% in 2005, Norsk Hydro 43% in 2004) while specific taxes on oil-profits for all operators are set to 78%, finally the government controls licensing of exploration and production of fields. The country is richly endowed with natural resources: petroleum, hydropower, fish, forests, and minerals. Norway has obtained one of the highest standards of living in the world, partly from petroleum production. Norway also has a very high employment ratio.
and further ...
Oil-exporting country
Source: Norwegian Central Bureau of StatisticsIn May of 1963,
Norway asserted sovereign rights over natural resources in its sector of the North Sea. Exploration started on July 19, 1966, when Ocean Traveler drilled its first hole. Initial exploration was fruitless, until Ocean Viking found oil on August 21, 1969. By the end of 1969, it was clear that there were large oil and gas reserves in the North Sea. The first oil field was Ekofisk, produced 427,442 barrels of crude in 1980. Since then, large natural gas reserves have also been discovered.
Against the backdrop of the Norwegian referendum to not join the European Union, the Norwegian Ministry of Industry, headed by Ola Skjåk Bræk moved quickly to establish a national energy policy. Norway decided to stay out of OPEC, keep its own energy prices in line with world markets, and spend the revenue - known as the "currency gift" - wisely. The Norwegian government established its own oil company, Statoil, and awarded drilling and production rights to Norsk Hydro and the newly formed Saga Petroleum.
The North Sea turned out to present many technological challenges for production and exploration, and Norwegian companies invested in building capabilities to meet these challenges. A number of engineering and construction companies emerged from the remnants of the largely lost shipbuilding industry, creating centers of competence in Stavanger and the western suburbs of Oslo. Stavanger also became the land-based staging area for the offshore drilling industry.
-----------------------------------------------------------------------------------
my comments :
i'm sure there are plenty of examples of incompetence in both government and in "so called" free enterprise .
it seems to me that the norwegians have been able to come up with a rather smart system to benefit from their wealth .
as far as i understand , the norwegians realized early on that their oil and gas riches would start to deplete and eventually run out .
instesad of waiting for that to happen , they started to set aside some of the profits to be able to start other enterprises and to 'look after their future' , so to speak .
it seems that so far they have done rather well .
so i don't think i would say : government bad - free enterprise good !
imo there is plenty in betwen to benefit the people of a country .
hbg
NORWAY - WIKIPEDIA