Nicolai Tangen gives his insights in a recent interview, appearing on the social media X platform, where he interviewed the CEO of Shell, Wael Sawan, about the future of fossil fuel in a modern economy. The zero carbon cult will not like what the Shell CEO had to say about the future of carbon fuel in advanced economies.
A man who likes to ask hard-hitting questions, Nicolai Tangen gives insights into numerous perplexing issues
Nicolai Tangen manages the largest capitalized wealth fund in the world, Norway Government Pension Fund Global, ranked in first place, valued at $1.6 trillion of sovereign wealth to date.
Only China Investment Corporation comes in a distant second place with $1,350,000,000,000, and even that is a fall of approximately 300B USD.
“Nicolai Tangen manages the largest capitalized wealth fund in the world”
WEALTH TRAINING COMPANY
But China has a population of 1.41 billion (2022) compared to 5.4 million people in Norway, and you get the idea that Norweageans are seriously wealthy. The lowest corruption and equitably well-managed investments from its vast oil and gas reserves means a $1.6 trillion wealth fund with one of the highest GDP per capita.
Does (socialized) wealth make populations happy? The World Happiness Report rates Norway as among the happiest countries in the world.
Perhaps that famous Scandinavian Norwegian smile could have something to do with the generous Nordic welfare state thanks to a massive honey pot sovereign wealth fund and small population.
But Nicolai Tangen gives insights into why Norwegians rank amongst the happiest people in the world, and it is not what you think.
Nicolai Tangen, a public servant in Norway, commutes to work not in a helicopter, a private jet, not an armoured limo or even a supercar but a scooter (probably electric).
“Nicolai Tangen, a public servant in Norway, commutes to work not in a helicopter, a private jet, not an armoured limo or even a supercar but a scooter”
WEALTH TRAINING COMPANY
Hedge fund managers in the US fly everywhere, with helicopters being their taxis. Could you imagine the head of a wealth fund in the US, London, Switzerland, Singapore or the UAE with half the size of Norway Government Pension Fund Global scootering it to work?
“I typically wake up at six hundred hours and then exercise, or take a dip in the ocean, followed by a sauna. Then I scooter to work,” said Nicolai Tangen.
So, a sauna is the key to happiness! Even @TheEconomist agrees is themsecret behind the world’s happiest country.
“Oil and Gas are a critical part of the energy system” – Nicolai Tangen
Nicolai Tangen gives his insights into Shell’s view on the future of carbon energy
Nicolai Tangen starts interviewing Shell’s CEO Wael Sawan on X. with a predictable, loaded question.
“Is it a fantasy to say we will phase it out?” asked Nicolai Tangen
“Oil and Gas are a critical part of the energy system. In fact, fossil fuels today are over 80% of the energy system,” Shell CEO, Wael Sawan.
“But is it a transition,” Aren’t we just adding one energy source onto another energy source,?” said Nicolai Tangen.
“You are right, we are doing that,” Shell CEO, Wael Sawan.
So there we have it. Fossil fuels currently represent 80% of the energy system, and as US hegemony is competing with a rival China-Russia BRICs alliance that focuses on economic growth and prosperity outside the US-centric sphere of influences, survival of the status quo is likely to take precedence over the debated science of climate change due to the use of fossil fuels.
Moreover, the worst cost of living crisis in nearly half a century is putting stress on the fiat monetary system, and it would be foolish to think a change to the energy system is coming soon.
The UK has just elected a labour government that wants to boost growth and build 1.5 million new homes.
Every productive endeavour requires a plentiful supply of affordable energy. So the UK labour government is unlikely to promote sustainable energy while its base struggles to make ends meet and pay more from their forever shrinking real wages to heat their homes and for transport.
Across the Atlantic, Trump 2.0 presidency, “drill baby drill” looks like a virtual certainty, God willing, and a new squad of decent-sized bodyguards shielding his body and head in public.
Oil and gas energy stocks could outperform the index, as home building and public infrastructure works require fuels for heavy machinery.
“AI is a real productivity driver for society and is hugely exciting”
– Nicolai Tangen
On the radar of the head of Norway Government Pension Fund Global, Nicolai Tangen, gives his insights
Artificial Intelligence AI and inflation both feature prominently in Nicolai Tangen’s mind.
He is ultra bullish on AI and makes no effort to hide it neither here nor in the investments he manages.
“We are working on several important projects, and the most important ones involve how we can use AI to reduce trading costs and improve timing,” said Nicolai Tangen.
“AI is a real productivity driver for society and is hugely exciting. I am worried about the world fragmenting and how Europe is growing less slowly than other regions,” he added.
He has many hours in the day to worry. Tangen is not a 9-to-5 man, nor are those who work for him, waking up at 6 am, working until 10 pm and sending emails around the clock.
Nicolai Tangen is a regular attendee at Davos, an invitation-only conference in the Swiss Alps for the elite ultra-wealthy, senior politicians and anyone important enough to gather and discuss pressing issues the world is up against.
Norway Government Pension Fund Global has currently invested in 8,859 to date, including companies like Apple, Microsoft and Nestlé.
Davos, of all places, is where Nicolai Tangen gives his insights into CEO pay
Corporate pay is out of proportion, warned Nicolai Tangen in Davos 2022.
“It has never been a worse time to show that kind of corporate greed because we have this (cost of) living crisis,” Tangen said. “It’s just not the thing to do in this particular period.”
“Such behaviour is bad for business,” he added, as paying CEOs too much can create tension within the company.
When CEO pay packages fail to meet its standards, Nicolai Tangen votes against them.
