• 4 hours Russia Approves Profit-Based Oil Tax For 2019
  • 8 hours French Strike Disrupts Exxon And Total’s Oil Product Shipments
  • 10 hours Kurdistan’s Oil Exports Still Below Pre-Conflict Levels
  • 12 hours Oil Production Cuts Taking A Toll On Russia’s Economy
  • 14 hours Aramco In Talks With Chinese Petrochemical Producers
  • 15 hours Federal Judge Grants Go-Ahead On Keystone XL Lawsuit
  • 16 hours Maduro Names Chavez’ Cousin As Citgo Boss
  • 23 hours Bidding Action Heats Up In UK’s Continental Shelf
  • 1 day Keystone Pipeline Restart Still Unknown
  • 1 day UK Offers North Sea Oil Producers Tax Relief To Boost Investment
  • 1 day Iraq Wants To Build Gas Pipeline To Kuwait In Blow To Shell
  • 1 day Trader Trafigura Raises Share Of Oil Purchases From State Firms
  • 2 days German Energy Group Uniper Rejects $9B Finnish Takeover Bid
  • 2 days Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 2 days Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 2 days Oil Prices Rise After API Reports Major Crude Draw
  • 2 days Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 2 days Gazprom Speaks Out Against OPEC Production Cut Extension
  • 2 days Statoil Looks To Lighter Oil To Boost Profitability
  • 3 days Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 3 days Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 3 days Whitefish Energy Suspends Work In Puerto Rico
  • 3 days U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 3 days Thanksgiving Gas Prices At 3-Year High
  • 3 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 3 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 4 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 4 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 4 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 4 days ConocoPhillips Sets Price Ceiling For New Projects
  • 6 days Shell Oil Trading Head Steps Down After 29 Years
  • 6 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 6 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 6 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 7 days Venezuela Officially In Default
  • 7 days Iran Prepares To Export LNG To Boost Trade Relations
  • 7 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 7 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 7 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 7 days Rosneft Announces Completion Of World’s Longest Well
Overcoming Wind Energy’s Biggest Obstacle

Overcoming Wind Energy’s Biggest Obstacle

New research suggests that smaller,…

The Hidden Cost Of Electric Cars

The Hidden Cost Of Electric Cars

As countries across the globe…

Statoil Undergoing Big Changes Under New CEO

Statoil Undergoing Big Changes Under New CEO

Eldar Saetre has been shaking up the leadership of Norway’s government-owned energy company since he took over as CEO three months ago, and doesn’t seem ready to stop. He has already ousted some top managers, including its chairman, and on May 12 he announced a series of new plans for executives.

One of these plans, and perhaps the most intriguing, is setting up New Energy Solutions (NES), a division that will focus on renewable energy – profitable renewable energy. The company said in a statement that the new unit will be led by Executive Vice President Irene Rummelhoff, who was previously the director of exploration in Norway.

In the statement, Saetre said he would make addressing climate change a top priority. So far the company’s focus has been on producing oil and gas, controlling more than 70 percent of Norway’s offshore drilling.

Related: 3 Ways Oil Companies Can Survive Low Prices

Statoil already has wind-power projects, but the company said, “The ambition is to grow and potentially expand into other sources of renewable energy [to] seek new opportunities to deliver attractive returns through technology and business innovation, as well as venture activities.”

Statoil has five wind-power projects in the North Sea, yet its only commercial wind farm is Sheringham Shoal off the east coast of England and the company has invested in a second such project nearby. Still, it reduced its investment in both projects in 2014.

But that was before Saetre became CEO. Now, he said, he wants Statoil to increase its focus on the “transition of the global energy system to a low-carbon society.” He said the creation of NES “reflects the aspirations to gradually complement the oil and gas portfolio with profitable renewable energy and other low-carbon energy solutions.” As director of NES, Rummelhoff will report directly to Saetre.

Related: Alberta Election Result Changes Little For Oil Industry

The company said it has only begun to outline a business plan for NES, but stressed that “[a]s a starting point the existing offshore wind portfolio will constitute our activities in the area.” But the statement said to expect the focus to widen to other sources of renewable energy that have “appropriate financial structures,” meaning they must be profitable as well.

These changes at Statoil aren’t sudden. They began in February when Saetre was promoted to CEO, replacing Helge Lund, who moved out to become the CEO of the British energy company BG Group. Since then Saetre has instituted many changes in the company, most involving efficiencies and cost savings. He’s even reported to have improved Statoil’s relations with trade unions.

Related: Here Is Why Predictions For Lower Oil Prices Are Wrong

As part of the shakeup announced May 12, Saetre promoted Hans Jacob Hegge to replace Torgrim Reitan as chief financial officer. Reitan was named the director of Statoil’s US operations, replacing Bill Maloney, whose contract was not renewed.

Part of Statoil’s recent cost savings have included a write-down and a reduction in investments in US shale production, but Reitan’s appointment appears to show that the company may be looking for a fresh approach to conducting business in America.

One analyst, Christian Yggeseth of the Norwegian firm Arctic Securities, told Reuters, “[t]ransferring CFO Torgrim Reitan to North America shows that they will not put less weight on their North America division, and they might consider a different model of ownership.”

By Andy Tully of Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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