The 'trillion pound' oil fund the government believes Britain could have built
The UK government has launched an Energy Wealth Fund with £2bn in funding, sparking a debate over the country's failure to establish a sovereign wealth fund from North Sea oil revenues. Treasury officials estimate that such a fund could have been worth £1 trillion if managed like Norway's.
Why it matters
It highlights a significant historical economic missed opportunity for the UK while the nation faces record-high debt levels.
Image caption, The Jackdaw gas platform and drilling rig in the North Sea.
Economics editor Published 2 hours ago After a half-century wait, the United Kingdom now has an oil fund.
Chancellor John Healey announced the creation of an Energy Wealth Fund at the Jackdaw gas approval announcement on Wednesday, with £2bn of funding diverted from the existing National Wealth Fund.
A selection of energy exporting countries, mainly in the Gulf, but also including Norway, over the years have amassed multi-trillion funds using oil and gas revenues to create epic national piggy banks.
It has been a long-standing debate in UK economic policy circles. If neighbouring Norway has amassed a $2.4tn war chest from the same North Sea, where exactly did the UK's sovereign wealth fund go?
It is an apposite question on the week when the national debt also hit £3tn for the first time.
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