Jobs

Norway Ends Lockout Threat in North Sea Oil Fields

The government of Norway has ended a 16-day strike against offshore oil and gas producers and killed the threat of an industry lockout that was set to begin at midnight last night. The labor minister said the decision was made to end the strike and potential lockout to protect the “vital interests” of the country. The government owns the controlling interest in Statoil ASA (NYSE: STO), the largest producer in the offshore oil fields. Other firms with interests in the North Sea offshore Norway include Total SA (NYSE: TOT), Eni SpA (NYSE: E), Royal Dutch Shell plc (NYSE: RDS-A) and (NYSE: RDS-B), BP plc (NYSE: BP), Chevron Corp. (NYSE: CVX), ConocoPhillips (NYSE: COP), and Exxon Mobil Corp. (NYSE: XOM).

The central issue in the strike had been the unions’ demand that workers be allowed to retire with full benefits at age 62 rather than the current 65. The Labor government waited until the very last minute to invoke its power to end the strike, presumably hoping to avoid offending its main constituency.

A lockout would have cut 2 million barrels/day of crude out of the market and a substantial amount of natural gas as well. Producers stood to lose as much as $300 million/day if the lockout had occurred.

The issues that led to the strike will now be heard by an arbitration panel. By threatening a lockout, the producers threatened not only the Norwegian government’s royalty earnings, but also the country’s reputation as a dependable supplier. Norway has never allowed a strike or lockout to stop offshore production and the producers wagered that it would not do so in this case. That was a sure bet.

Paul Ausick

The #1 Thing to Do Before You Claim Social Security (Sponsor)

Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.

A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.

Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.

 

Have questions about retirement or personal finance? Email us at [email protected]!

By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.

By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.