• 5 minutes Mike Shellman's musings on "Cartoon of the Week"
  • 11 minutes Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 13 hours Newspaper Editorials Across U.S. Rebuke Trump For Attacks On Press
  • 3 hours Venezuela set to raise gasoline prices to international levels.
  • 8 hours WTI @ 69.33 headed for $70s - $80s end of August
  • 2 hours The Discount Airline Model Is Coming for Europe’s Railways
  • 7 mins Pakistan: "Heart" Of Terrorism and Global Threat
  • 1 day Corporations Are Buying More Renewables Than Ever
  • 12 hours Batteries Could Be a Small Dotcom-Style Bubble
  • 17 mins Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 6 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 9 hours Starvation, horror in Venezuela
  • 1 day Renewable Energy Could "Effectively Be Free" by 2030
  • 15 hours France Will Close All Coal Fired Power Stations By 2021
  • 14 hours Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
The Productivity Problem In The Permian

The Productivity Problem In The Permian

The pipeline capacity crisis in…

Oil Prices Jump As Saudis Cap Oil Supply

Oil Prices Jump As Saudis Cap Oil Supply

Oil prices rose on Tuesday…

James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

Statoil Steals Market Share from Gazprom with New Gas Pricing Strategy

The model has worked fine for many years, however oil prices are now at constantly high levels and the European utilities are starting to complain and pressure their suppliers to drop the link with oil and create more flexible pricing models based on spot gas markets, such as the British National Balancing Point.

Statoil first took the initiative and linked their gas prices to the spot market, rather than the oil market, meaning that they now sell more than half of their natural gas exports under contracts linked to spot prices; this share is expected to increase even further in the future. As a result of this early move, Statoil were able to steal a lot of market share off their larger competitor, Gazprom.

Related article: A Carbon Tax may Curb the Rise in Natural Gas Flaring

The Oxford Institute for Energy Studies explained that, “if Gazprom is determined to preserve oil-indexation then it will lose market share.”

In 2012, despite the fact that the European gas market shrank overall, Statoil exported record volumes to the continent, causing Russian gas exports to Europe to fall by around 10 percent.

Gazprom has made its move to try and counter Statoil’s aggressive expansion strategy by making billions of dollars of price concessions. However, it is still determined to link its gas prices to the oil markets; only time will tell if this is enough to secure its market share.

By. James Burgess of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News