Envoy makes Houston a priority destination
On his first official trip outside D.C., the new Norwegian ambassador visits the U.S. energy capital
Kåre Aas, Norway’s new ambassador to the United States, visited Houston recently on his first official venture outside Washington in his new role. Numerous Norwegian businesses work in Houston, and the national oil company, Statoil, manages its U.S. onshore and offshore activities from the energy capital. In an interview with the Chronicle, Aas discussed his nation’s interests in Houston and the fund that Norway created for investing its oil wealth. Edited excerpts:
Q: Why did you decide to make Houston your first priority for travel outside of Washington?
A: I wanted to come here first because of the huge number of Norwegian businesses in Houston, as well as the large number of Norwegians living in Texas, especially Houston. There are other places, such as Minnesota and Washington state, where we have large Norwegian-American populations, but Houston is the main center for Norwegian commercial activities.
As ambassador, it is important to gain experiences from the situation all over the country. In Washington, my job has to do with the politics — issues in the Middle East, environmental issues, climate issues, the Arctic, and negotiations between the U.S. and the European Union. The focus is on increasing Norway’s understanding about the way the Obama administration makes decisions and why, as well as the consequences for our country and our international policy.
Coming out here, we are looking at the Norwegian business presence. The business activity in Houston has a clearer impact on Norway. The issues we deal with in Washington represent the more long-term issues where we have a common interest with the United States.
Q: Mexico has identified Norway as its model for developing a sovereign oil fund that will protect some of the wealth generated from the industry for future generations. What has worked and how does this oil fund shape the industry in Norway?
A: What is important about the fund is the investment for the future. The goal is to save it, not to spend it, and to increase it. We use a small part of the surplus for various social and economic development and other areas, such as road and transport. The rest we are investing abroad. For example, this fund has invested in the 2,000 biggest companies in the U.S. We are one of the top 20 largest investors for many of these companies. Many countries, including China and Mexico, have taken a great interest in our fund. We have also invested in bonds and real estate markets. North Dakota is also proposing a similar fund, after coming back from a factfinding trip to Norway.
Q: As production in the North Sea has slowed, Norway is looking at a possible post-North Sea future. What might that look like in Norway?
A: We have already expanded exploration and production into the Northern Sea and the Barents Sea. The Arctic is fragile, and we are committed to preserving the fisheries, which are home to the biggest cod stocks in the world. We have to manage both the oil and gas sector and the traditional activities in these areas coming from fisheries. There is this broad consensus within Norway about expanding north, and the government is very attentive on how to balance preservation of the fisheries with oil and gas development.
Q: In the United States, whether to drill in the Arctic has generated considerable controversy. What has the reaction been in Norway?
A: We already have production in the Arctic. The whole oil and gas history in Norway is consensus driven. We have a consensus in the parliament, so even when the production moves to the north, we are able to balance the commercial interest and the governmental interest in conserving the environment and the fisheries. There might be disagreements, but we are always able to find the necessary compromises in what we are doing that is solid for the companies, for the environment and the population.