Consultation of the report on energy stocks in the Norwegian Government Pension Fund Global

An expert group led by professor and rector at the Norwegian School of Economics has assessed whether the GPFG should be invested in energy stocks. The group submitted its report (NOU 2018: 12) to the Ministry on August 24, 2018.

The background for the report was the advice from Norges Bank in November 2017 on removing the oil and gas sector from the GPFG’s benchmark index. The Bank’s advice was sent on public consultation in February, 2018.

In accordance with the mandate, the expert group has based its assessments of whether the GPFG should be invested in energy stocks on a broader set of considerations than Norges Bank. The group has assessed the vulnerability of the Norwegian economy and national wealth for a permanent decline in the oil price, and the benefit and costs associated with divesting from energy stocks. The group has also called to attention alternative measures that may reduce the risk. Based on an overall assessment, the group has concluded that the GPFG should continue to invest in energy stocks.

– The expert group’s assessments are based on a broader set of considerations than Norges Bank’s advice. The expert group has also called to attention other ways of reducing the risk. We would like the best possible basis for deciding on this important matter for the management of our common wealth. We therefore also circulate the expert group’s report for comments, says Minister of Finance Siv Jensen (FrP).

The deadline for submitting comments is November 28, 2018.

The Government aims to present its assessments to Parliament in early 2019.