Norway is making more money from oil and gas exports than ever.
Ole Berg-rusten | Afp | Getty Images
Norway’s skyrocketing oil and gas wealth is expected to climb to new heights this year, boosted by higher fossil fuel prices in the wake of Russia’s nearly year-long onslaught in Ukraine.
The ballooning petroleum profits of the Scandinavian country put Oslo in a unique position: As many in Europe are struggling to cope with the region’s worst energy crisis in decades, Norway — already extremely rich — is getting richer still.
It has ignited an impassioned debate about international justice, with many questioning whether it is fair for Norway to rake in record oil and gas revenues at the expense of others’ misfortune.
Opposition lawmakers, prominent economists in the country, and even titans of Norway’s energy industry have called on the government to set an example to the world by pumping its fossil fuel revenues into a new international solidarity fund that helps countries meet their climate goals.
Norway’s Finance Ministry expects the state’s revenues from oil and gas sales to climb to 1.38 trillion Norwegian krone ($131 billion) this year. That’s up from a previous record of 1.17 trillion krone last year, and a nearly fivefold increase from 288 billion krone in 2021.
“They are war profits,” Lars-Henrik Paarup Michelsen, director of the Norwegian Climate Foundation think tank, told CNBC via telephone.
“Most European countries are getting poorer because of the war. Norway is getting richer — much richer.”
Opposition lawmakers, prominent economists and even titans of Norway’s energy industry have called on Prime Minister Jonas Gahr Store’s government to set an example to the world by pumping at least some of its fossil fuel revenues into a new international solidarity fund.
Michelsen said he was fearful that by choosing to pocket its bumper oil and gas profits, Norway is damaging its international reputation, warning that the country is at risk of being perceived as “very egocentric.”
“We are in a completely different position than the rest of Europe and I think, with that, it also bears a responsibility,” Michelsen said. He called for the government to redirect its extraordinary windfall to further help Ukraine, accelerate Europe’s energy transition and provide climate finance for low-income countries.
“This situation is certainly not of our making and not to our liking,” Norway’s Deputy Foreign Minister Eivind Vad Petersson told CNBC via telephone. He argued that it is critically important for Europe’s energy security that Norway keeps gas production high.
Petersson said the government’s financial support to Ukraine is approaching 1.5 billion euros ($1.63 billion), adding that the country’s policymakers are working on a multi-year program to continue to help Kyiv.
Oil companies are getting richer and richer, but we don’t see that money — and who is really paying for this?
Ingrid Fiskaa
Foreign affairs spokesperson for Norway’s Socialist Left
When asked about accusations that the country is war profiteering, Petersson replied, “No, not really … The indirect effect, we fully acknowledge, is that our revenues have increased, but I do not accept that label.”
“We are very well aware of the responsibility that comes with the fact that we have these resources. Of course, the responsibility to protect it, bearing in mind the crucial role of energy security now in Europe for this winter and possibly next,” Petersson said.
He added that Norway’s government is also “fully aware of the responsibility that comes with being a supporter and donor, not only to Ukraine but also other countries across the world suffering the effects of Russia’s war.”
‘We should contribute more with this money’
Norway, which last year overtook Russia as Europe’s biggest natural gas supplier, has been one of the world’s top crude producers for the past half-century. That’s thanks to its gigantic North Sea petroleum deposits — the spoils of which have been used to provide a robust safety net for current and future generations.
The Norwegian government’s net cash flow from petroleum sales is transferred into Norway’s $1.3 trillion sovereign wealth fund. The government can only spend a small part of the fund each year, but this is still estimated to amount to nearly 20% of the government budget.
The so-called Government Pension Fund Global, among the world’s largest sovereign wealth funds, was established in the 1990s to invest the surplus revenues of Norway’s oil and gas sector. To date, the fund has invested in more than 9,300 companies in 70 countries around the world.
Norway, which last year overtook Russia as Europe’s biggest gas supplier, has been one of the world’s top crude producers for the past half-century.
Jp Black | Lightrocket | Getty Images
“These excess profits, as we may call it, are a direct result of the war,” said Ingrid Fiskaa, foreign affairs spokesperson for Norway’s Socialist Left, whose support is critical for Prime Minister Jonas Gahr Store’s minority government.
Fiskaa highlighted that legislation in Norway limits the use of oil revenues in the domestic economy to avoid high inflation — and that, she argues, strengthens the case for investing in international solidarity.
“There should be a lot more debate on this issue,” Fiskaa told CNBC via telephone. “Oil companies are getting richer and richer, but we don’t see that money — and who is really paying for this? It is the rest of the world. We should contribute more with this money.”
Norway’s aid budget has hovered near 1% of its gross national income for more than a decade, making it one of the world’s most generous donors.
Store’s government was sharply criticized last year for proposing to cut the proportion of GNI it spends on foreign aid to 0.75%. That level is still significantly above the Organization for Economic Cooperation and Development’s average of 0.3%, but civil society groups described the move as “embarrassing” at a time when Oslo was making money like never before.
Norway’s foreign ministry has since pledged to deliver on its aid budget target of 1% of GNI in 2023.
Exxon Mobil reported first-quarter earnings Friday that beat Wall Street expectations, but declined from the prior year as crude oil prices have fallen sharply on fears that President Donald Trump’s tariffs will hit global demand.
The oil major said volume growth in the Permian Basin and Guyana combined with cost-cutting measures largely offset lower earnings from weak oil prices. U.S. crude prices have fallen 18% this year as Trump’s tariffs raise fears of slower demand at the same time producers in OPEC+ plan to increase supply.
Exxon shares were up less than 1% in premarket trading after the results.
Here is what Exxon reported for the first quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
Earnings per share: $1.76 vs. $1.73 per share expected
Revenue: $83.13 billion, vs. $86.72 billion expected
Exxon said its profits declined 6% to $7.71 billion, or $1.76 per share, from $8.22 billion, or $2.06 per share, in the same quarter last year.
The oil major’s global production business posted earnings of $6.76 billion in the quarter, an increase of about 19% from $5.66 billion in the same period a year ago. Profits in the segment rose due to growth in the Permian and Guyana as well as cost savings.
Earnings in Exxon’s U.S. production segment soared more than 70% to $1.87 billion from $1.05 billion in the same quarter in 2024.
Exxon’s global production came in at 4.55 million barrels per day, an increase of 20% compared to 3.78 million bpd in the year-ago period.
Exxon said first-quarter capital expenditures of $5.9 billion were consistent with its guidance of $27 billion to $29 billion for 2025.
The company said it returned $9.1 billion to shareholders in the quarter, including $4.3 billion in dividends and $4.8 billion in share purchases.
Chevron stock fell on Friday as the oil major’s profit declined, hurt by the steep drop in oil prices this year.
U.S. crude oil prices have fallen about 18% this year as President Donald Trump’s tariffs are expected to weigh on demand at the same time OPEC+ plans to pump more supply into the market.
The oil major said it plans to repurchase $2.5 billion to $3 billion of its own stock in the second quarter, which is lower than the $3.9 billion it bought back in the first quarter.
Chevron shares were recently down more than 2% in premarket trading.
Here is what Chevron reported for the first quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
Earnings per share: $2.18 adjusted vs. $2.18 expected
Revenue: $47.61 billion vs. $48.09 billion expected
Chevron’s net income declined more than 30% to $3.5 billion, or $2 per share, from $5.5 billion or $2.97 per share, in the year-ago period. Excluding one-time items, Chevron earned $2.18 per share, which was in line with Wall Street estimates.
Chevron’s U.S. production business posted a profit of $1.86 billion, a decline of more than 10% from $2.08 billion in the year-ago period, as it experienced higher operating expenses and lower commodity prices.
The oil major’s U.S. refining business swung to a profit of $103 million after posting a loss of $348 million in the fourth quarter of 2024. The segment’s earnings, however, declined 77% from $453 million in the year-ago due to lower margins on refined product sales.
Chevron’s produced 3.35 million barrels per day in the quarter, largely flat compared to 3.34 million bpd in the year-ago period.
Capital expenditures declined about 5% to $3.9 billion, down from $4.1 billion one year ago.
Zero Motorcycles has announced that its newest line of electric motorbikes will see a price increase in the US due to the Trump Administration’s tariff policy. But the saving grace is that the company is allowing reservations made in the next few weeks to secure pre-tariff pricing.
Zero launched its new X-line of smaller electric motorcycles late last year, ushering in a Sur Ron-style pair of bikes that cost a mere fraction of the company’s larger street bikes.
Designed for off-road use in the US or both on and off-road use in Europe, the Zero XB and XE were designed to be as affordable to new riders as they are approachable.
The XB was unveiled with a price tag of a mere US $4,195 or €4,500, while the larger and more powerful XE carried a price tag of US $6,495 or €6,500.
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The pair were part of the motorcycle maker’s plans to have six unique models all priced at under US $10,000 in the next two years. However, those plans may face increasing pressure after the Trump Administration imposed harsh new tariffs on imported goods to the US, forcing many manufacturers to increase prices.
Zero’s push for more affordable electric motorcycles is made possible mainly by its partnership with Chinese electric motorcycle manufacturers like Zongshen. While such companies have years of experience manufacturing motorcycles at more affordable prices, their relative cost advantage could take a serious hit under the US’s aggressive stance towards foreign-produced goods.
The first XB and XE motorcycles are expected to be delivered to existing reservation holders this Summer. However, for anyone who doesn’t yet have a pre-order in place, Zero says that it will still honor the existing pricing for reservations placed before May 18, 2025.
Bikes reserved in the next two weeks are not expected to ship until later this year, meaning they will almost certainly be subject to increased tariffs, though it appears Zero is prepared to eat those tariffs for an early group of reservation holders.
“Zero Motorcycles remains committed in our mission to deliver industry-leading electric motorcycles while maintaining an accessible price point for consumers around the world,” said Sam Paschel, CEO of Zero Motorcycles. “Our customers are at the heart of everything we do. And by honoring prices for early reservation holders – despite the shifting global economy – we’re reinforcing our position as the leader in the electric space and building the future of two-wheel transportation.”
Electrek’s Take
What a time to double down on Chinese partnerships. I feel for Zero, who was obviously looking for a way to reach more riders, especially young riders in the Sur Ron/Talaria demographic, and found the obvious way to do so by going to the world’s biggest market for producing e-motorcycles.
That’s not to say that US-based production isn’t possible. Zero used to do more production locally before slowly shifting more and more of its manufacturing overseas. There are still companies like Ryvid who manufacture in the US, though even those companies rely on many imported components and will still likely take a hit from tariffs.
The long and the short of it is that the entire electric motorcycle industry is going to be shaken by these tariff policies, and no US consumer will spared. Or at least, none after May 18th.
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