The big drop in oil price has created a quite unexpected effect in Norway, that is also one of the world’s biggest gambling nations, and one of the largest exporter of salmon and oil. A barrel of oil is now cheaper than salmon. Norway is known for its massive export of oil, and it has also been the main source for the countries wealth, however time has changed and salmon is now one of the main most valuable exports.
Salmon is mostly valued based on 4,5 kilo, and today the price was higher comparing to a barrel of oil which normally is based on 159 liter, if you compare the two.
The reason for this price drop is of course collapse of the oil price we seen the last months. As a comparison a barrel of the high quality Bren oil has dropped a massive 75% in value since the summer 2014. The new year has continued in the same direction, and the oil price has continued to drop to low $30 per barrel.
Another negative effect to the oil price and increase in price for salmon for the Norwegians is of course devaluation of the norse krone.
A second negative effect the drop in oil price has resulted in is that much less investments are going into the oil- and gas industry as the market is carefully awaiting to see where the oil price is heading. High level management in the Norwegian oil industry are expecting to see the oil price to start recovering in 2019 to its old hight levels.
In total it is estimated that Norway has a export value of $50 billion dollars for oil- and gas per year.