– It might not be Friday and party time. It’s Monday. It’s time to roll up our sleeves and get to work, says Statoil’s chief financial officer at Pareto conference Wednesday .
In the oil industry faces declining oil production, lower oil prices and the future dividend capacity is put under pressure, also tightened their belts before the undergrowth of companies that feed on oil investments.
– Fundamental changes
Expectations were therefore set as the oil company Statoil and CFO Torgrim Reitan opened the lecture series at this year’s offshore and oil services conference in Holmenkollen Wednesday.
– We face fundamental challenges across the industry, says Reitan .
Now is the time to learn from other industries that have been under margin pressure for many years, he said.
– From champagne to whiskey
Statoil-top is convinced that the room for improvement is greater if industry work.
– Someone suggested to me that the mood has shifted from champagne to whiskey. As CFO of Statoil I expect to be the most popular person here, said Reitan.
The CFO, however, was introduced at this year’s conference as one that had often been quoted as saying that “$ 100 is the new $ 30 “barrel. In high praise of the group’s development in recent years, guided the oil analyst Trond Omdal him into the lion’s den.
– This is the best introduction I’ve ever gotten. I wish my mother were here to hear it, said Reitan as he entered the stage and the audience chuckled.
Despite the fact that the CFO becoming baptized lecture “balancing return versus growth”, it was far from pessimism to track the messages.
– Higher investment
He was rather surprised that everyone now talking about that one had to get authorities to intervene to increase activity on the shelf, while two years ago was concerned that oil rapture would have a negative effect on other parts of the Norwegian economy. Oil Census figures from Statistics Norway, as oil companies’ own estimates are lower than they have been, but Statoil peak suggested that this was misunderstood.
– We see higher investment, said Reitan.
He untyped that total investment is now at 227 billion this year, up from 212 last year. At the same time, the estimate for 2015 of 185 billion, 12 billion higher than the jubilee 2012. Statoil also has a project portfolio that is bigger than ever on over 100 projects. Just these alone constitute 205 billion, before drilling and well construction, and most of the Norwegian continental shelf, emphasized Reitan.
– Newborn plan
He appears wheat is also Johan Sverdrup, the largest found on the Norwegian continental shelf in the last 30 years. The project is not part of the SSB figures, and will require 100-120 billion in investments, according to the CFO.
– Newborn today to plan a career in the Johan Sverdrup said Reitan.
Statoil-top was still evident that the group is running a strong cost and efficiency focus. The company’s guiding principles of the Capital Markets Day in February remains unchanged. That means an optimization of projects and investments of up to $ 20 billion, efficiency gains that will provide an improvement in cash flow of $ 1.3 billion by 2016, and “competitive returns” to shareholders and quarterly dividends.
– Return and the bottom line is important, not production, says CFO.
Key to this is that the industry must cooperate more. At the same time other times for creativity and innovation, pointed Reitan.
– Is there one thing I have learned is that for each of the challenges, we have come out stronger, he said.
Increase for all sources
The background is too bright. The rising standard of living in the world is expected to increase demand for oil and gas significantly in the coming years. Statoil expects a demand growth of 40 percent from today to 2040.
– And we expect the demand to increase for all energy sources, said Reitan.
Statoil considers that hydrocarbons will be the main source in the future. The CFO estimates that oil and gas will meet 75 percent of total demand in 2040, compared to 81 percent today. Meanwhile, non-renewable energy sources will be sufficient to replace the lower production, says Statoil-top.
– We need to actually replace four times Saudi Arabia’s oil production and five times Norway’s gas production, he said.
Read more: Oil investments declined substantially – Will felt pretty good
Performance Press
The major publicly traded oil companies have long been concerned about the high investment required just to maintain current oil production.
The cost increases, coupled with increasingly fierce taxation, allows companies barely manage to deliver excess returns to their investors. 
Petroleum Consultant Jarand Rystad in Rystad Energy said to DN recently that oil companies may look far for super profits they used to go into.
– industry struggling to get returns over cost of capital of eight percent, said Rystad last week.
Are the oil companies estimate, use 42 billion less on the Norwegian shelf next year, namely 227, 3 billion. For 2015, the estimate of 185.3 billion dollars.
| Income Statement | 2013 | 2012 |
|---|---|---|
| Net sales | 637 400 000 | 723 400 000 |
| Operating | 155 500 000 | 206 600 000 |
| Profit before tax | 138 500 000 | 206 700 000 |
In thousands
Prefer Exchange
Statoil share contributed big to Oslo Børs is up approximately twelve percent so far this year, with an increase of around 20 percent, before dividends.
The State domestic oil company priced Now over 560 billion, or about 10 percent of the Fund, also known as the Government Pension Fund Global.
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