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Entries in Norway (2)

Tuesday
Jul102012

Crisis Averted: Government Ends Norwegian Oil Strike

Digital Vision/Thinkstock(NEW YORK) -- The Norwegian government intervened to prevent a lockout in the country's oil and gas industry, according to a statement issued by Statoil ASA.

Statoil and other companies were planning to shut down oil production unless the government could enforce a compulsory arbitration between the companies and the unions that represent more than 6,000 offshore workers, according to the Wall Street Journal.

During the dispute, which lasted a record 16 days, the unions demanded a retirement age of 62 instead of 65, while the companies insisted they were acting in compliance with the government's pension reforms, Businessweek reports.

Without the positive outcome, the lockout was sure to have, "vital repercussions for the Norwegian economy and also for securing deliveries to Europe," said Labor Minister Hanne Bjurstroem, according to Businessweek. A shutdown in Norwegian oil production could have caused a backlash for the U.S. and other economies as well. Norway is the world's eighth largest oil exporter, responsible for about 2.2 percent global supply, which is already stretched because of sanctions on Iranian oil.
 
Production is expected to return up to full speed within the next week, according to Statoil.

Copyright 2012 ABC News Radio

Monday
Jul092012

Gas Up 6 Cents; Norway Strike Pushes Oil Higher

iStockphoto/Thinkstock(NEW YORK) -- The average price for a gallon of regular gas is $3.41, up nearly 6 cents from a week ago, according to the U.S. Department of Energy.  This price is still 23 cents lower compared to a year ago.

Crude oil traded higher on global markets Monday. Oil futures spiked 1.8 percent thanks in part to a workers strike in Norway that is threatening to shut down the country’s substantial production operation.  The country is the world's eighth-largest oil exporter, responsible for about 2.2 percent global supply, which is already stretched because of sanctions on Iranian oil.
 
Norwegian unions are on strike demanding a retirement age of 62 instead of 65.

Copyright 2012 ABC News Radio







ABC News Radio