Morningstar Rating

Stock Research and Analysis

by Allen Good, CFA

Bulls Say

Recent discoveries on the NCS in the Barents Sea indicate that resources remain and allow the company to use existing infrastructure to fast-track production.
Statoil benefits from proximity to continental Europe, where natural gas demand is expected to increase as a result of usage for electricity generation to meet carbon emission reduction goals.
Statoil is at the forefront of innovation and use of technology in exploration and production. Reserves in harsh environments and deep water, such as the Arctic, are within the company's reach because of experience and subsea technology. Read more 

Bears Say

With 80% of production coming from the NCS, Statoil is highly leveraged to production fields that have been in decline since 2001. Efforts to increase production from declining fields could be costly.
We think efforts to hold returns steady returns will prove unsuccessful as we expect lower oil prices than management's assumptions.
Statoil is a relatively new entrant into U.S. unconventional resources. Its lack of experience may result in poor performance or lackluster returns. Read more 

Management

Helge Lund, who had been CEO and president of Statoil since 2004, recently departed to become CEO at BG Group. Eldar Sætre, president of the marketing segment, was named interim CEO until a successor is found.
The Norwegian government retains a majority   Read more 

Profile

Statoil is a Norway-based integrated oil and gas company. It has been publicly listed since 2001, but the government retains a 67% stake. Operating primarily on the NCS,  Read more 

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