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Thursday, June 30, 2022

Oil divides industry in two

Norway’s booming oil industry has left the rest of its industrial base divided into two camps. They consist of those companies that make it possible to extract and produce oil and gas, and all the companies not tied to oil that now are struggling to survive.

Norway’s traditional forest products and metals industries, for example, are under severe pressure. Most other non-oil-related businesses also face huge challenges, and many are either going out of business or moving overseas to cut costs.

Norsk Industri, in a recent evaluation of the state of industrial production in Norway, said companies delivering to the oil industry are experiencing boom times, with revenue growth expected to hit 15 percent this year. The rest of Norwegian industry expects 1 percent growth at best, and remains deeply worried that the strength of the Norwegian currency will continue to hurt exports. Companies like Elart Metall in Vikersund are closing down in Norway.

The only good news for workers is that many of them are finding new jobs, because of Norway’s low unemployment rate and demand for workers in oil-related firms.

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