Norway has expensive fuel, but Norway is a huge oil exporter, and money goes to the sovereign fund, or officially, the Government Pension Fund Global.
Currently, their fund is above $2 trillion and basically guarantees the financial security of future generations. That is by far largest sovereign fund in the world.
Norway has a huge petroleum industry (Statoil), and basically, they sell it elsewhere, and most of the profits fill that fund. They on other hand choose to go EV, hydroelectric.
Some 20 years ago, I was talking at some event with one of the founders of Greenpeace, who left the organization because he was pushing hydroelectric as renewable, and others were just, well, not open to it. It is that game of black and white.
As for 1.6% of military spending, Norway could do better. They border Russia, and considering their finances, they should be spending 2% of NATO's minimum, which they agreed to some 20 years ago. I think current events will change that dynamic.