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Case

Norway discovers oil

By Talamàs Vilardaga, Eduard / Ide, Enrique

Finance

In 1969, Norway discovered substantial oil reserves in the North Sea, significantly impacting its economy previously centered on traditional sectors like fishing, forestry, and agriculture. Extracting these resources required extensive capital investments, posing immediate economic challenges.

Collection: IESE (España)

Ref: ECON-436-E

Format: PDF

Number of pages: 2

Publication Date: Jun 12, 2025

Language: English

Description

Geographic Setting: Norway

Industry Setting: Financial

Learning Objective

This case explores the implications of Norway’s discovery on economic variables such as consumption, investment, and government spending, examining the contrasting outcomes if Norway were a closed versus an open economy. Additionally, the case raises questions regarding the economic rationale behind Norway's prolonged current account surpluses in the decades following the oil discovery.

Norway discovers oil

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Norway discovers oil

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Learning Objective

Norway discovers oil

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