The oil and gas industry is at a turning point, according to the Statoil’s chief executive Eldar Saetre.
The head of the Norwegian operator said a combination of a rise in renewables and the need to tackle emissions would influence the future make-up of oil and gas.
“Combined this dynamic will create a turning point for the industry. The companies and countries that show they can successfully tackle these challenges will be the new winners. Statoil’s response is to capture the opportunities and actively shape the future of energy,” he said.
But before the industry can forge ahead it must recognise its shortcomings, according to the company leader.
Addressing the Norwegian Prime Minister at Statoil’s Autumn Conference, he said: “First, we need to be competitive at all times and create a company that can operate profitably even in today’s commodity environment. Second, Statoil will set an example for how the oil and gas industry must transform. Our industry was unsustainable at $100 oil.”
“That’s why we need to embrace simplification and standardization, but also collaborate and share solutions to solve joint problems. And thirdly, I want Statoil to be an energy provider for a low-carbon future. Oil and gas will remain a critically important part of this future. We want to be the world’s most carbon-efficient producer of oil and gas and we will increasingly use our competence in new areas.”
He added: “We know that energy demand is growing. We also know that renewable energy will have to meet most – if not all – of this increased demand. However, oil and gas will remain critically important energy resources.
“Even in a 2 degree world we need oil and gas roughly at today’s levels in 2040.”
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