[ninalanyon]

The vast majority of oil tax revenue never enters the Norwegian domestic economy but is instead funnelled into the State Pension Fund (The Oil Fund) which invests outside the country. This means that the oil has little effect on inflation in the country. There is also a rule that only 3% or less of the fund can be used by the state in any one year. 3% is the expected real return so the fund should never shrink thus preserving the value for the future.

Norway has successfully avoided the Dutch Disease. But whether we will be able to successfully negotiate the decline of oil in the long run remains uncertain.