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Its an endowment, they should be only spending a portion of the earnings not the principle. That way it will last in perpetuity instead of 10 years.
by thinkcontext 5y ago
Its an endowment, they should be only spending a portion of the earnings not the principle. That way it will last in perpetuity instead of 10 years.
- ars 5y agoDo the math. That's enough for 5K/person/year. You really think that's enough to replace the oil sector?
- thinkcontext 5y agoThe income from the wealth fund doesn't need to replace oil income forever, it should be used to invest in growing other parts of their economy. For example, Equinor is getting into offshore wind and carbon sequestration both of which use similar competencies to oil production. Anyway, they are still extracting oil and probably will continue to do so for a couple decades. That gives them time to grow their wealth fund and gradually transition their economy. They are at a huge advantage compared to other oil exporters.