Oil policy debates drive Norway election

Norway is heading into the final weekend of its parliamentary election campaign with the outcome too close to call, as right-leaning opposition parties try to oust Scandinavia’s only remaining left-of-centre government.

Issues at stake include how much of Norway’s oil riches should be pumped into the economy and whether the pristine Arctic coastline should be opened for oil drilling as North Sea reserves dwindle.
Two centrist parties have ruled out joining a coalition with the right-wing Progress party, the biggest opposition group, because of differences over immigration, economic policy and the environment.

This could allow the centre-left coalition to keep power or Labour may seek to form its own minority government.

The relatively shallow downturn has helped limit the appeal of the anti-immigrant Progress party, which wants to lift restrictions on oil spending to fund a huge public works programme.

Most other parties favour keeping a lid on expenditure to preserve wealth for future generations and avoid stoking inflation.

There is greater division over proposals to open the untouched Lofoten coastline to oil exploration. The Labour party, traditionally supportive of the oil industry, has sidestepped the issue because of opposition from its Socialist coalition partner. The right is also split on the matter.

The energy industry is eager for access to Lofoten – thought to hold up to 2bn barrels of oil.

Financial Times