Norway Faces New Economic Realities With Oil’s Price Decline --- Most of the Revenues from the Nation’s Oil Industry Have Been Invested in Its Sovereign-wealth Fund --- OSLO—As global oil prices slide, there are signs Norway’s luck is running thin. -- On Wednesday, Statoil AS A, the oil and gas major 67%-owned by the Norwegian government, posted its first quarterly net loss since it floated on the stock market in 2001. The company blamed heavy write-downs on investments that look less profitable after the near-25% fall in oil prices since June. -- Separately, Norway’s $838 billion sovereign-wealth fund—the largest of its kind in the world that long has been fueled by oil revenues—said it achieved a slim 0.1% return on investments in the third quarter, thanks to a loss on its substantial holdings of European equities. -- The twin set of bad news was compounded by weaker-than-expected economic data that showed Norway’s retail sales declined in September while its unemployment rate rose in August. That pushed Norway’s currency to an eight-month low against the euro at 8.48 kroner for each euro. --- For a country used to strong growth and high standards of living, the reversal in fortunes is a shock. -- With a population of around 5 million, Norway has the second-highest gross domestic product per head in Europe after tiny Luxembourg. As the eurozone contracted in both 2012 and 2013, Norway’s mainland economy grew by 3.4% and 2% in both those years. -- “When we lose the boost from the oil sector, we may become more similar to other countries,” said DNB Markets analyst Kyrre Aamdal in an interview. --- Last year, Norway’s oil and gas sector invested a record 212 billion kroner ($31.88 billion), equivalent to about 10% of the country’s mainland GDP. But the fall in oil prices means the industry likely will cut its spending in each of the next three years, DNB said Wednesday. The bank previously had expected only a short-term decline next year. - Read More, WSJ, http://online.wsj.com/articles/norway-faces-new-economic-realities-with-oils-price-decline-1414607069