Global Upstream Investments to Fall by 20% in 2015, Says Statoil

Statoil CEO Eldar Sætre has said today that global upstream investments are estimated to fall by 20% in 2015. In a speech at the company's annual Autumn Conference, the CEO also recognised the role of renewable energy, but said that oil and gas still maintained an important role in the energy mix as energy demand increases. 

“We know that energy demand is growing. We also know that renewable energy will have to meet most–if not all–of this increased demand. Oil and gas will remain critically important energy resources," Mr. Sætre said on Monday. "Even in a 2 degree world we need oil and gas roughly at today’s levels in 2040."

Mentioning the energy union and the new UK energy strategy unveiled last week, he said that there is still positive news for the oil and gas industry. 

"I was encouraged by the signals on the important role of gas," Sætre commented.

In a news release on its website, Statoil said it is trying to become the world’s most carbon-efficient producer of oil and gas.

"Energy demand is growing and emissions must be reduced. This will lead to large shifts 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."

Earlier this month, the company said it is increasing its environmental commitment on the Norwegian continental shelf (NCS) for 2020 by 50%.