Statoil Bets on Angola, Russia; Turns Nose on US Shale Oil

Statoil bets on Angola and Russia’s shale industry and expresses some doubt on US shale oil hype, writes Reuters reporting a statement by the company’s exploration chief Tim Dodson. 

“I am very excited about (the Russian) shale opportunity,” Dodson said, adding that there is a huge, huge upside if it works.

Statoil reached a preliminary deal with Russia’s Rosneft in June to explore for shale in Siberia. The Norway-based company hopes to drill one or two wells in Siberia as soon as 2014. 

Dodson sees at the same time opportunities stemming from Angola, where it was awarded several licences. Statoil plans to start drilling next year.

“The big question mark and big hope is Angola,” Dodson said to Reuters. 

Statoil, which holds around 330,000 acres in the Bakken formation in North Dakota and Montana, said that most of the US formations hold mostly gas. Dodson doubts the potentials of US shale oil. 

“As a company, we question a little bit all the hype around shale oil,” commented Statoil’s exploration chief Dodson.