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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.

Picture Alliance | Picture Alliance | Getty Images

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.

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Daily EV Recap: EVs that can power your home

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Daily EV Recap: EVs that can power your home

Listen to a recap of the top stories of the day from Electrek. Quick Charge is now available on Apple PodcastsSpotifyTuneIn and our RSS feed for Overcast and other podcast players.

New episodes of Quick Charge are recorded Monday through Thursday and again on Saturday. Subscribe to our podcast in Apple Podcast or your favorite podcast player to guarantee new episodes are delivered as soon as they’re available.

Stories we discuss in this episode (with links):

You can power your home for 21 days with a Chevy Silverado EV and GM’s new bidirectional charger

Hyundai bets on new materials to improve its upcoming electric vehicles

Tesla launches website to convince shareholders to vote for Elon’s $55 billion payday

XPeng CEO shares NGP self-driving footage in Germany, teasing full roll out coming to EU

2023 was a record year for wind power growth – in numbers

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Drop us a line at tips@electrek.co. You can also rate us in Apple Podcasts or recommend us in Overcast to help more people discover the show!

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Daily EV Recap: EVs that can power your home

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You’re reading Electrek— experts who break news about Tesla, electric vehicles, and green energy, day after day. Be sure to check out our homepage for all the latest news, and follow Electrek on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t know where to start? Check out our YouTube channel for the latest reviews.

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Disneyland faces pressure to electrify its stinky ‘Autopia’ ride, and quick

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Disneyland faces pressure to electrify its stinky 'Autopia' ride, and quick

Disney’s Autopia ride has been making headlines recently, after a park spokesperson told the LA Times that the park is “evaluating technology that will enable us to convert from gas engines in the next few years.” But activists want to put the pressure on to ensure that Disney goes all-EV with the ride, and fast.

The news was reported in many outlets suggesting that Disney is going all-electric with Autopia, but unfortunately, Disney’s statement is a little noncommittal and open on that front. We’ve seen a lot of automakers call 100% gas-powered hybrids as “electrified,” and given that Disney was nonspecific about both its timeline and powertrain source, there’s still room for pressure to ensure that Disney goes with an all-electric choice.

Autopia is a classic ride in Disneyland’s “Tomorrowland” area, but given the EV world we’re living in, its stinky gas-powered cars certainly don’t seem too futuristic.

Until 2016, Autopia vehicles were noisy, polluting two-stroke engines. Two-stroke engines differ from four-stroke in that they can create more power in small formats, but are much dirtier because the combustion process is less complete in a two-stroke engine, and thus exhaust contains ~30x higher levels of particulate emissions (for example, running a two-stroke gas leafblower for one hour can make as many poisonous emissions as driving a passenger car 1,100 miles).

The emissions from these engines cause smog and harm the health of those who breathe them – so putting them directly in front of small children isn’t the best idea. But the ride was sponsored by Chevron from 1998-2012, and that company is pretty dedicated to poisoning small children anyway, so it was apt.

Thankfully, in 2012, Disney attracted a new sponsor, Honda, and in 2016, Honda upgraded the engines to small four-stroke engines, reducing noise and pollution significantly. However, the cars still create exhaust, which is still poisonous to the children riding behind these polluting engines. It’s also poisonous to employees, to the point where Disney pays hazard pay to employees who are assigned to staff the ride.

2016 was also notably after EVs had proven themselves in the automotive realm. So upgrading to an old technology seems a little inappropriate for “Tomorrowland.” But Honda themselves have been behind the ball on the EV transition as well.

Tomorrowland is the section within Disneyland which was meant to show visions of the future. It first opened in 1955, and offers a time capsule of what a 1950s vision of the future might have looked like.

Needless to say, in the seven decades hence, things have changed somewhat. To the point where the original designer of the Autopia cars, Bob Gurr, who is now 92 and was interviewed by the LA Times, said “get rid of those God-awful gasoline fumes.”

It’s certainly ironic that in California, where EVs keep setting sales records and where you can’t even buy gas-powered “small off-road engines” anymore, a Disneyland parkgoer might drive to the park in a clean EV, only to show their children a vision of the past with a poisonous, low-performing gas engine on one of the admittedly more-fun rides in the park. Just imagine how much more fun the ride could be if it were electric.

And Disney could do a lot more to update Tomorrowland with actual visions of the future, rather than an old-timey time capsule. The original Tomorrowland featured a “Carousel of Progress” show of futuristic efficient home appliances, and the Monorail and PeopleMover which both still exist. Disney could showcase more public transport or other post-car mobility options, ideas for futuristic city planning, induction cooktops and more.

But for now, making Autopia electric seems like incredibly low-hanging fruit. Electric go-karts are nothing new, and while Disney’s commitment to move away from gas in the “next few years” is good to hear, it’s been a long time coming, and now isn’t the time to wait.

To this end, local EV advocates and Plug In America are hosting a “Dump the Pump” rally this Sunday, April 21 at 10am at Walt Disney Studios in Burbank. Not a bad way to spend Earth Day weekend, perhaps after attending one of the LA-area Drive Electric Earth Month events the day before (and one of the founders of Drive Electric Week, Zan Dubin-Scott, is organizing the Burbank rally).

Given Disney’s 2030 net-zero pledge (which is ambitious compared to many companies), it’s about time they ditch gas at Autopia – and not just in the “next few years,” but maybe before next Earth Day rolls around. How about it?

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Nissan Micra EV to debut later this year as new low-cost electric car

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Nissan Micra EV to debut later this year as new low-cost electric car

Another affordable electric car is set to be unveiled later this year as Nissan looks to boost EV sales. Nissan will unveil a new Micra EV as its newest low-cost electric car.

Nissan has been teasing an electric Micra successor for several years now. The new EV was previewed as part of the Renault-Nissan-Mitsubishi alliance.

Over two years ago, the company claimed, “This all-new model will be designed by Nissan and engineered and manufactured by Renault using our new common platform.”

The entry-level EV was part of the Alliance’s plans to invest 23 billion euros ($24.5 billion) over a five-year period to kick off its EV offensive. Nissan unveiled its own business update last month as it looks to cut costs and introduce affordable EVs.

Nissan’s new “Arc” business plan aims for “significant next-generation EV cost reduction” through its partnerships and technology.

The automaker is preparing to launch five new electric cars soon. In November, Nissan revealed an up to £3bn ($3.8B) investment to build three new EVs at its Sunderland factory, including an electric Juke, Qashqai, and its LEAF successor.

Nissan-sporty-urban-EV
Nissan Concept 20-23 electric car (Source: Nissan)

Nissan Micra EV to arrive as a new low-cost option

However, Nissan will kick things off with the Micra EV, which will be unveiled later this year. It will be Nissan’s latest low-cost electric car as it looks to satisfy growing demand.

Although Nissan has yet to reveal full details, it’s expected to ride on the same AmpR Small Platform used to power the Renault 5. The Renault features up to 249 miles range from a 52 kWh battery, and the Nissan Micra EV is expected to boast similar numbers.

Nissan-Micra-EV
(Source: Nissan)

It could also offer smaller battery options, like 40 kWh, good for 186 miles range, at a lower price point.

According to Auto Express, the Micra EV will be the first of Nissan’s new electric car lineup. The new low-cost EVs’ design is expected to be closer to that of the Ariya, as sources have also indicated with the new LEAF.

Nissan-Micra-EV
Nissan Ariya (Source: Nissan)

Nissan said it aims to reduce the costs of its new electric models by 30% by developing “EVs in families, integrating powertrains, utilizing next-gen manufacturing, group sourcing, and battery innovations.”

The automaker expects that by focusing on these areas, its electric cars will achieve price parity with gas-power vehicles by 2030 (if not sooner).

Nissan also plans to introduce new EV batteries, such as all-solid-state, to gain a competitive advantage. It kicked off construction on its new all-solid-state EV battery pilot line this week.

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