Statoil CEO: oil and gas industry at crossroads

The energy world is going through a period of change and oil and gas industry is facing a tough reality with an estimated 20 percent fall in global upstream investments, Statoil CEO Eldar Sætre said.

Speaking at a conference on Monday, Sætre stressed that oil and gas will still have an important role in the future energy mix.

Although Sætre expects the renewables to cover the most of the growing energy demand, he stressed that even in a 2-degree world oil and gas will be needed at roughly today’s levels in 2040.

Sætre also emphasized the action needed from policy makers and the business to meet the increased demand for energy and reduce emissions at the same time through effective policies.

As energy demand is growing and emissions need to be reduced large shifts will occur in energy use and production. At the same time lower oil and gas prices are causing a rebalancing of supply and demand, putting an increasing premium on being a low-cost producer, Statoil’s CEO said.

Sætre added he sees the companies and the countries that tackle these challenges as new winners.

LNG World News Staff; Image: Statoil