Industry has just “scratched the surface” of what is possible in a low oil price, Statoil’s Eldar Saetre said.
Statiol’s chief executive made a rallying call at this year’s ONS to strengthen the ties of collaboration as the sector enters year two of a depressed oil price.
The company leader, who was employee 535 at the Norwegian operator, said: “In my view we have only just scratched the surface of what is possible if we direct our energy to smarter ways of working together, joining forces on initiatives such as standardisations.”
Two years ago, Eldar’s predecessor took to the ONS stage with oil at an even $100 a barrel.
“Falling oil price exposed us all,” Eldar said.
It is an exposure which will see Statoil strip $2.5billion out of its costs by the end of this year.
This year the company chief opened the show with the news that Statoil’s flagship Johan Sverdrup development had a break-even cost of sub $25.
“I can think of no better way to start ONS,” he said.
But a reduced cost base is only on part of the industry’s answer to today’s challenges, according to the chief executive.
WATCH: Johan Sverdrup – Building for the future
Examples such as the recent Paris agreement dictate the opportunity for the sector to re-establish itself.
“The future of energy will have to be low carbon,” he said.
“Again we need a culture and mind-set where we look for the opportunities. Oil and gas will be part of the energy mix for decades to come we must show not by our words but with our actions that we belong in a low carbon future.”
Statoil is on track to reduce its C02 emissions by 2.5million tonnes by 2030.
The resolve the sector will need to overcome this downturn is greater than any “individual company or change”, according to Saetre.
“Let me assure you Statoil is ready to do the job,” he said.
“We are fully committed to the Norwegian Continental Shelf for the next 50 years.”
Saetre also referenced the sector’s plight over the past 50 years.
“50 years ago when the first exploration well was drilled in the NCS, I was a 10-year-old boy. The NCS has gone beyond anything we could have imagined.”
He added: “I am confident that at the other end of the downturn we will see a stronger industry.”
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