Norway Has Advice For Ohio

Here is an article my favorite podcast, Planet Money, had on Norway Has Advice For Libya. This advice is appropriate for any state that is looking at expanding drilling such as Ohio.

Perhaps, even more amazing is what the Norwegians decided to do with the money they made off the oil. Initially, they decided that the citizens of Norway wouldn’t see any of it. They choose not to spend it on schools, roads or sports stadiums. Instead, in the beginning, they reinvested almost all the money they got back into the developing the oil industry ”” into drilling new wells, doing new explorations and developing new technologies.

Today all that money is in a savings fund called the Government Pension Fund Global, and the Norwegian government only gets to spend the interest that fund makes. The size of the fund right now is about $547 billion dollars.

Tom Blumer wrote a related article on, Blumer: Kasich’s tax could affect OH job growth. It looks like if Ohio can develop the oil well service business, Ohio unemployment problems in south eastern Ohio could dramatically improve for many years. If Ohio can develop  a viable long term industry, Ohio might be able to put together a trust fund like they have in Texas that provides capital improvements on state universities and slows down the growth in college tuition expenses.