Norway

E

Forestry

The Norwegian forestry industry accounts for a relatively small proportion of Norway’s yearly GDP. More than one-fourth of Norway is forested, with the densest woodlands in the east, where most of the timber is felled. In 2005 annual timber production totaled 9.7 million cu m (341 million cu ft), most of which was spruce and pine.

Forestry work is seasonal and usually lasts from November to April. Two-thirds of the forests are privately owned, but all forests operate under close government supervision. The government subsidizes the planting of new trees.

F

Fishing

An important source of wealth for Norway is its fishing industry. Norway is one of the world’s leading fishing nations, accounting for about 3 percent of the world’s total catch. The nation’s large fishing fleet has an expansive catch area that extends to the banks of Newfoundland and Labrador in Canada. Since the early 1970s, the government has helped finance the development of a fish-farming industry (particularly of salmon and sea trout). The total yearly marine catch in 2004 was about 3.2 million metric tons. Important species caught include capelin, herring, mackerel, cod, sand lance (sand eel), pollock, salmon, and prawns.

Norway paused commercial whaling in 1988, following a moratorium on the practice issued by the International Whaling Commission (IWC). However, Norway resumed commercial hunting of the minke whale in 1993. As a member of the IWC, Norway has consistently resisted efforts to ban the slaughter of whales. Today, the Norwegian government sets a yearly quota of whales that can be killed based on estimates of the whale population.

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G

Mining

Before offshore drilling for petroleum and natural gas began in the 1970s, mining was relatively unimportant in Norway, and the country had to import most of its fossil fuels. This sector now accounts for about one-eighth of Norway’s GDP; the percentage in any given year depends on world oil and gas prices.

Large petroleum and natural gas reserves were first discovered in Norwegian areas of the North Sea in the late 1960s, and petroleum production began on a trial basis in 1971. In 1974 a pipeline was completed to carry crude oil to Teesside in northeastern England. By 1975 Norway was producing enough petroleum to satisfy all of its domestic needs and also to export large quantities to Europe. By 2004 annual crude petroleum production was 1.04 billion barrels; natural gas production was 73.4 billion cu m (2,592 billion cu ft). Natural gas is piped to both Scotland and Germany. Today, Norway is the world’s third largest exporter of petroleum, behind Saudi Arabia and Russia, and one of the world’s top exporters of natural gas.

Other mineral products of Norway include iron ore, lead concentrates, titanium, pyrite, coal, zinc, and copper. The largest iron mines are located at Sydvaranger, near the border with Russia. Coal is mined in the Svalbard archipelago.

H

Manufacturing

Manufacturing accounts for 11 percent of the annual GDP. The electrochemical and electrometallurgical industries form an important sector of manufacturing. These industries need an abundance of inexpensive electrical power, which Norway’s well-developed waterpower resources can supply. Although the raw materials for aluminum—one of the chief products of the country’s electrometallurgical industry—must be imported, Norway produces about 4 percent of the world’s supply of refined aluminum. It is also an important producer of ferroalloys. A major product of the electrochemical industry is nitrogenous fertilizer, produced from nitrogen that is extracted from the air using large amounts of electricity.

Norway was traditionally a major shipbuilding nation, but by the mid-1980s Norway’s share of the world’s new shipping capacity had declined to less than 1 percent. Shipbuilding contracted dramatically in the late 1970s as the industry encountered financial problems; many shipyards have since shifted some of their capacity to the production of equipment for the oil and gas fields. Other major manufactures include confections and processed fish, chemicals, paper, machinery, and electronic goods. The country has several petroleum refineries and a major integrated iron and steel plant at Mo i Rana, which is situated near the Arctic Circle.

About half of Norway’s manufacturing occurs in the counties surrounding Oslo. However, manufacturing facilities are located in many parts of the country, especially along coastal areas. Factories are typically small, and few enterprises employ more than 500 people.

I

Services

Services contribute 55 percent of Norway’s annual GDP. Services encompass a broad economic sector that includes public administration, banking and financial services, wholesale and retail trade, and the hotel and restaurant business, among other activities.