The Norway Threshold: The Most Dangerous Statistic In The World

norway

Photo: Wikimedia

On Christmas Eve, 1969, the history of Norway changed forever.That day, the country announced that Phillips, the American oil company, had discovered the largest oil and gas discovery in the history of the North Sea.

For the next three decades, the percentage of the country’s GDP stemming from oil exports skyrocketed, topping out at 17.5 per cent in 2000.

But in recent years, the government has attempted to enact measures to reduce the country’s hydrocarbon dependency, end its Dutch Disease, and de-peg the country’s future from the price of oil. 

As a result of such efforts, the country has reduced its oil-export-to-GDP ratio to 12 per cent.

Here’s the interesting thing about that number, though:

With just a couple of tiny exceptions, countries with an oil-to-GDP ratio above 12 per cent remain some of the nastiest, most dangerous places on earth, while those below it lead a relatively sanguine existence. 

Take a look at oil-to-GDP ratios of countries around the world (data via IMF):

  • Brunei Darussalam: 78.65%
  • Republic of Congo: 73.41%
  • Equatorial Guinea: 69.8%
  • Iraq: 66.83%
  • Angola: 62.37%
  • Turkmenistan: 57.42%
  • Kuwait: 57.1%
  • Qatar: 56.34%
  • Gabon: 53.44%
  • Azerbaijan: 52.38%
  • Saudi Arabia: 52.34%
  • Libya: 50.53%
  • Bahrain: 49.47%
  • Chad: 43.88%
  • Oman: 43.73%
  • Singapore: 41.85%
  • Nigeria: 38.44%
  • Algeria: 37.63%
  • United Arab Emirates: 30.99%
  • Kazakhstan: 30.91%
  • Venezuela: 27.9%
  • Belarus: 25.37%
  • Republic of Yemen: 24.35%
  • Islamic Republic of Iran: 23.42%
  • Trinidad and Tobago: 22.59%
  • Ecuador: 19.32%
  • Lithuania: 16.65%
  • Russia: 14.9%
  • Sudan: 14.22%
  • Norway: 11.99%
  • Côte d’Ivoire: 11.21%
  • Netherlands: 10.41%
  • Cameroon: 10.31%
  • Vietnam: 10.1%
  • Suriname: 8.94%
  • Colombia: 8.51%
  • Malaysia: 8.36%
  • Estonia: 8.21%
  • Ghana: 7.48%
  • Panama: 6.7%
  • Canada: 6.49%
  • Papua New Guinea: 5.92%
  • Democratic Republic of Congo: 5.85%
  • Tunisia: 5.59%
  • Mauritania: 5.24%
  • Albania: 3.22%

Reference

  • United Kingdom 2.54%
  • United States 0.75%

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.