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Newsletter Archive

27.04.2015

The economic crisis has passed its peak in Europe. Meanwhile a political crisis is brewing caused by the rise of the populist parties.

European politics was for many decades dominated by two blocks. The conservatives worked for lower taxes and a leaner public sector, while socialists grew the welfare state and increased regulation.

This dichotomy broke down after the financial crisis. Both the right and the left have lost ground to the populist parties.

 

Forces of populism

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20.04.2015

The world economy is shifting gears. While previously the engine of growth was infrastructure investments in the emerging economies, the consumers must now pick up the baton.

The fall in oil prices is good news for all of the world's motorists. So far the reduced fuel expenses primarily have ended up as increased savings.

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13.04.2015

The Norwegian oil age has passed the peak. What will be the new engine of the Norwegian economy?

Norwegians have so far lived well from natural resources. Three industries with extreme profitability: hydroelectric power, salmon farming and oil and gas have made Norway a wealthy society.

The potential for developing more hydropower plants is limited and it is not easy to fit additional fish farms into Norwegian fjords.

Most important of all is that the oil and gas industry faces a long term, albeit gradual, decline for geological reasons.

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13.04.2015

The Norwegian oil age has passed the peak. What will be the new engine of the Norwegian economy?

Norwegians have so far lived well from natural resources. Three industries with extreme profitability: hydroelectric power, salmon farming and oil and gas have made Norway a wealthy society.

The potential for developing more hydropower plants is limited and it is not easy to fit additional fish farms into Norwegian fjords.

Most important of all is that the oil and gas industry faces a long term, albeit gradual, decline for geological reasons.

Continue reading

06.04.2015

The combination of the shale oil revolution and high debt levels constitute an existential threat for many rig, supply and seismic companies on the Oslo Stock Exchange.

The oil industry is deeply cyclical like any other commodity industry. Many forgot this in the period from 2010 to 2014 when it was apparently a fixed rate regime in the oil price.

After the previous supply-driven oil crash in the mid-80s almost all steel-owning offshore companies went bankrupt. The coming years can be just as difficult.

 

Offshore depression

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