The initiative “implies increased political risk” for oil producers, analyst Andre Baustad Benonisen, of Danske Bank Markets, said in the article. “It should lead investors to increase their return requirements when they consider investing in the Norwegian oil industry. A central impact of this is a lower activity level.”

Statoil calculates that the government’s move last week could translate to a current value loss of 20 billion kroner, or $3.4 billion, along with thousands of jobs, if it delays development of the Johan Sverdrup deposit.

Statoil is the largest component holding of the Norway country-specific ETFs, accounting for 20.4% of NORW and 19.8% of ENOR. The energy sector also plays a large role in the market, with energy stocks making up 44.9% of NORW and 43.3% of ENOR.

Global X Norway 30 ETF

For more information on Norway, visit our Norway category.