Norway has been held up as a success in terms of avoiding Dutch disease following the discovery of hydrocarbons in 1969. Manufacturing employment has developed in line with other industrial countries, and productivity has not suffered. A tax system has been designed to enable the government to absorb the entire resource rent, deposit all of it in the Government Pension Fund Global, and limit spending to the fund’s expected real return. However, a strong home bias caused the demands created by the post-2000 investment boom to be directed towards the domestic, non-oil economy. As a result, prices and wages were bid up significantly above those of surrounding countries. The implied reduction of oil company profits cut tax revenues, so that arguably about half of the resource rent was diverted to the private sector and added to the spending boom. The talk will document these findings and discuss the future prospects for the Norwegian economy in view of the recent global cost increases and the eventual end to the petro saga.