The largest field ekofisk was discovered in the north

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Unformatted text preview: dget constraint or less opportunities for innovation and agility in the SOE. The OECD has underscored that there is also a risk for competition: “to promote a more direct and active state ownership” (as the Parliament usually demands) could imply a “move in the direction of an interventionist industrial policy that would undermine the reforms taken the past two decades and exacerbate tensions related to good governance and competitive neutrality” (OECD, 2003). On the other hand, the policy of preserving headquarters of nationally strategic companies in Norway has succeeded. 4. The Oil & Gas Supplier Cluster Unlike most oil and gas producing nations, Norway has developed a significant domestic cluster of suppliers to oil and gas operators. The supplier cluster employs 114,000 people in Norway and achieved sales of $52 billion in 2010, $20 billion of which were sales to customers outside of Norway (Sasson, 2011; Skjellevik, 2011). The cluster succeeded, because the Government put in place effective policies that enhanced pre ­ existing competences in related industries (shipping, shipbuilding, and mining), and the firms were forced to innovate under harsh demand conditions. The cluster is strategically positioned as a technology ­driven innovator. The oil & gas cluster in Norway 14 History of Oil and Gas in Norway The discovery of gas off the coast of the Netherlands in 1959 prompted Phillips Petroleum to apply for permission to explore off the coast of Norway. The largest field, Ekofisk, was discovered in the North Sea in 1969, and production began in 1971. The oil and gas sector has dramatically transformed the economy in a mere 40 years, as can be seen in Figure 12. Oil production peaked in Norway in 2001...
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