Statoil’s chief executive Eldar Saetre said he “can’t afford the $100 way of thinking” as oil prices continue to decline.
The boss of the Norwegian operator said oil companies have become too accustomed to a high oil price.
The 59-year-old, who became chief executive of the company last year, said firms had forgotten the “fundamental nature” of the oil and gas industry, which he described as “volatility and
cyclicality”.
He said: “In many boardrooms, they are concerned about their own house. They feel the uncertainty. They need to control their cost base. Nobody has the answer.”
Saetre revealed the first time he was offered the role of chief executive he declined, instead becoming acting head while a replacement to Helge Lund was found.
Speaking to the Financial Times, he said he had no aspirations to take the lead role at the company.
He said his mind was changed to taking in taking the new role after months acting as chief executive.
Saetre said: “The experience you get, the level of confidence, and you get the feeling you can make an impact, a difference.
“I’m a human being and I like to be appreciated.”
The business graduate said his most challenging moment in his career at Statoil, which began in 1980, was the In Amenas terrorist attacks in 2013.
The event claimed the lived of five Statoil workers and 35 other people in Algeria.
Saetre said the company learnt several things at the time.
He said: “It was personally a very tough experience, and very tough for the company.
“Being brutally honest with ourselves. Not being good enough. We needed to reshape and readjust. It can’t happen again, no way.”
Saetre said he believes the oil price will return but the “longer the downturn lasts” he said the more “forceful the rebound could be.”
After the Paris Climate Change talks in December, Saetre said he thinks oil and gas will be “sticky” from an environmental perspective.
He added: “There is no scenario from which you will get away from something that represents 50% of the world’s energy.”
Earlier today it was revealed Statoil’s Hywind project off the coast of Aberdeenshire could create hundreds of posts.
Recommended for you
