It is the story of Farouk al-Kasim, an Iraqi who by a quirk of fate ended up organizing Norway's government oversight authority for oil exploitation, the Norwegian Petroleum Directorate. As the article points out. Putting an Iraqi in charge saved Norway from the poisonous fate of almost all resource-rich countries.
It is an amazing story. Here are some bits:
But al-Kasim’s most immediate problem on arriving in Oslo that morning was how to fill the day: his train to Solfrid’s home town did not depart until 6.30pm. “I thought what I am going to do in these hours?” he says. “So I decided to go to the Ministry of Industry and ask them if they knew of any oil companies coming to Norway.”Go read the whole article. It is fascinating. Here is a case where bureaucracy is part of the solution, not the problem. The right wing, anti-social message needs to be tempered by factual stories like this.
He deposited his luggage and walked to the ministry, where he was received by a baffled official who told him to come back that afternoon. When he returned, expecting only an address list, several men were waiting for him. “They were keen to know what had I been doing, what kind of education I had, whom I worked for. Did I work as a petroleum engineer? Did I work as a geologist? What did I do?” His request for a list of possible employers had turned into an impromptu job interview. “They must have been absolutely desperate for expertise!” says al-Kasim. They were indeed. At the time of his surprise call, Norway’s oil administration numbered just three officials, all in their thirties and all learning essential parts of the job as they went along. Meanwhile, the North Sea exploration results were pouring in and required careful analysis. Al-Kasim must have looked like a godsend: a man rich in academic training and practical experience of the oil industry – and one in need of work.
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Al-Kasim and his family wouldn’t have left Iraq but for their son’s medical problems, but even so, the move was politically sensitive. In the past, he’d been stopped at the border on orders from the secret police, who considered him a key figure for any future nationalisation of the oil industry. Now it took months to secure permission to take his son for what they had to pretend would be short-term medical treatment abroad. “It was a smuggling operation … we were only trying to save the life of our youngest child. But in Iraq, these things don’t matter.”
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“Farouk is perhaps the greatest value creator Norway has had,” says Olsen. And with good reason. Most of the oil found in the world is never recovered: the average extraction rate worldwide is around 25 per cent. Norway averages 45 per cent, and for that, Olsen gives al-Kasim much of the credit: he pushed the government to increase extraction rates; insisted that companies try new technologies, such as water injection in chalk reservoirs or horizontal drilling; and threatened to withdraw operating licences from companies that balked. “It is this culture, a culture of ‘squeezing the last drop out’, which he cultivated,” says Olsen.
The extraction rates al-Kasim forced through significantly boosted oil and gas revenues – and so indirectly, the size of the savings fund. But the culture of pursuing the “last drop” brought greater benefits than just money pouring in. It spurred the development of technological expertise that has enabled Norwegian companies to compete with the best in the world. This, then, is a striking case of strong state regulation ultimately benefiting the private sector. “Norway is the only country in the world where the state and the capitalistic entities work together as partners, and the co-operation works, really works,” says al-Kasim.
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