The Norway situation you describe is correct. Normally an influx of wealth from oil (or other natural resources, even humanitarian aid) will suppress the count

The Norway situation you describe is correct. Normally an influx of wealth from oil (or other natural resources, even humanitarian aid) will suppress the country's abilities to be competitive in manufacturing or other (non-oil) sectors. It's often called a "Resource Curse" or "Dutch Disease". Avoiding the curse requires not to spending the oil money directly... and instead to invest it and spend only the interest.