Path to prosperity

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As the end of 2026 comes into view, the year has provided important lessons on ensuring national energy security. Since late February, the Strait of Hormuz has been virtually…

As the end of 2026 comes into view, the year has provided important lessons on ensuring national energy security. Since late February, the Strait of Hormuz has been virtually closed, cutting global oil supplies by about 11 million barrels a day. Oil prices have exceeded $100 a barrel, with Brent crude recently closing at $116.93 a barrel. The International Energy Agency has had to release 400 million barrels from its strategic reserves; the largest release in its history.

In Vietnam, on March 10, the Prime Minister instructed the Vietnam National Industry - Energy Group (Petrovietnam) to maximize production and study the establishment of a national crude oil reserve. Vietnam is also at a critical juncture. The National Assembly passed the new Law on Petroleum on August 23, which will take effect on March 1, 2027. The consultation period for the implementing decree ended on October 24, and the draft is scheduled to be submitted to the government in December. This leaves a limited window to draw on international experience and refine the institutional framework governing Vietnam’s oil and gas industry.

Countries organize their oil and gas industries in different ways, but four models offer particularly relevant lessons. The first is Norway, where the State clearly separates three functions. In 1971, before significant oil production began, Norway’s parliament adopted ten principles governing the petroleum industry. In 1972, the country established Statoil, the national oil company, and the Norwegian Petroleum Directorate. Though the tax rate is high, at 78 per cent, it has remained unchanged for decades.

Rather than spending oil revenues immediately, Norway channels them into a fund that is now worth more than $2 trillion. The government withdraws only about 3 per cent of the fund’s value annually to finance the State budget.

The third model is found in the Gulf, particularly Saudi Arabia and the United Arab Emirates, through Saudi Aramco and ADNOC.

The fourth model is…

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