Norway does not have the scale of houston which has

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Unformatted text preview: both Statoil and the suppliers continue to internationalize as production shifts to geographies other than Norway, one concern is how connected these firms will remain to their Norwegian locations. Factor Conditions The strength of the human capital available is a source of concern. Norway has a lower percentage of science and engineering graduates (12%) than the OECD average (15%) (OECD, 2009); these degrees provide the foundational training for many of the roles in the oil and gas supplier cluster. In addition to the shortage of engineers, oil and gas has a perception issue. An increasing number of Norwegian engineering graduates choose to “focus on renewable energy and other technologies that are perceived to be environmentally friendly” (Sasson 2011). The share of engineers is actually declining in some of the supplier sub clusters (Topside, Geology and Seismics, and Operations Support). Firms have plugged this gap with foreign labor. The percentage of foreign labor in the cluster increased from 4% in 2000 to 8% in 2008 (Sasson, 2011). Although oil and gas is the best paid sector in Norway with an average annual salary of $120,000, the wage compression in the industry does not provide workers with The oil & gas cluster in Norway 24 sufficient incentives to advance their careers or improve their skills with additional training. (See Figure 18.) Amir Sasson identifies an interesting trend: “The significant increase in the workforce with business and economics degrees and other social science degrees over the last eight years may indicate a shift from the development of new products and services to the commercialization of already developed products and services.” This may suggest a...
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