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The way Norway's oil fund works makes these decisions easier. All the oil money goes in a sovereign wealth fund. 4% of the fund's value per annum is taken as g
by dalbasal 8y ago
The way Norway's oil fund works makes these decisions easier.
All the oil money goes in a sovereign wealth fund. 4% of the fund's value per annum is taken as government revenue (like tax). So, any new oil found will only gradually increase budgets in the future. Also, the can stop drilling now and the annual revenue just stops growing (unless the market). It doesn't shrink.
Forethought.
- throw0101a 8y ago> Also, the can stop drilling now and the annual revenue just stops growing (unless the market). It doesn't shrink. Actually: if you're taking out 4%, but various investments are bringing in >4%, then the principal will continue to grow.