How & why

Fundamental changes are happening in our industry—and faster than ever before. Geopolitical shifts, industry fundamentals, market dynamics and the need for a low carbon future are posing new challenges. Here we explain the reasoning behind our strategic direction.

infographic shapingthefuture

In Statoil, we see these changes as opportunities to shape and improve the energy industry of tomorrow. We aim to set an example for how the oil and gas industry must develop, show leadership and point the way to bolder and better solutions.

CEO ELdar Sætre 2017
Photo: Ole Jørgen Bratland

Eldar Sætre
President and Chief Executive Officer

We are an energy company committed to long term value creation in a low carbon future.

We will maximise and develop the value of our unique NCS position and our international oil and gas business, focusing on safety, cost and carbon efficiency.

We expect 15-20% of our investments to be directed towards new energy solutions by 2030.

We are a values based company where empowered people collaborate to shape the future of energy.

illustration of Statoil strategy

We strive to be recognised as an industry leader in safety, and we believe that accidents and incidents related to people, environment and assets can be prevented. Our vision is zero harm.

We focus on preventing personal injuries and major accidents, and the goal of zero injuries has become part of how we think and work, with a strong focus on continuous improvement. The safety standards we have today build on experiences and incidents from the major operations and projects we have carried out over the last 40 years.

We will actively shape our portfolio to deliver high value with a low carbon footprint. These principles guide us as we form a Statoil portfolio that remains fit for the future towards 2030 and beyond

Cash generation capacity at all times

Capex flexibility

Capture value from cycles

Low-carbon advantage

We believe a low carbon footprint will make us more competitive in the future. We also believe there are attractive business opportunities in the transition to a low carbon economy.

Statoil wants to be a part of this transformation in order to fulfil our purpose of turning natural resources into energy for people and progress for society.

Our strategy focuses on high value and low carbon. Embedded in the strategy is a set of principles to guide our decision-making. One of these principles is that we should leverage our low carbon advantage.

Our Climate Roadmap explains how we plan to achieve this and how we will develop our business, in support of the ambitions of the Paris Climate Agreement.

By 2020 we expect up to 25% of research funds to be devoted to new energy solutions & energy efficiency

Aiming to achieve annual  CO2 emission reductions of  3 million tonnes by 2030 compared to 2017.

By 2030 new energy has the potential to constitute around 15-20% of investments/annual capex

CO2 emission reductions of 3 million tonnes per year by 2030

Portfolio carbon intensity of 8kg CO2/boe by 2030

Methane emissions from the Norwegian gas value chain below 0.3%

Eliminate routine flaring by 2030
 

New energy solutions with potential to represent around 15-20% of capex by 2030

Up to 25% of research funds to NES and energy efficiency by 2020

Invest USD 200 million through our new energy ventures fund

Partner in the USD 1 billion OGCI Climate Investments

Continued support for carbon pricing

Minimum internal carbon price of USD 50 per tonne C02

Climate risk and performance embedded into strategy, incentives and decision-making 

Amplifying our climate actions through collaboration
 

Curious to find out more? See the video of Bjørn Otto Sverdrup - Senior Vice President of Sustainability in Statoil - discussing our climate roadmap towards 2030

The world's remaining hydrocarbons are located in ever more remote areas, greater water depths and harsher environments.

New oil and gas fields are needed to fill the gap from keep up with demand declining production in existing fields—but finding and developing them requires ever more innovation and determination.

Energy companies like ours must effectively balance combined challenges of exploration uncertainty and subsurface risk while improving recovery rates and reducing costs. We have to achieve it without causing harm to people, the environment, communities or material assets, and in accordance with ambitious goals for carbon efficiency.

We believe that the answer to all of these challenges lies in the use of innovative technology. Take for instance 4D modelling, innovative ultra-deepwater drilling and carbon capture and storage projects—all of which are examples of cutting-edge technologies that we have developed in Statoil.
 
We have more than 40 years of experience in overcoming challenges from one of the most inhospitable climates of the earth—the Norwegian continental shelf—and inevitably, it has shaped us. It has left us with a can-do attitude that means we approach every problem with the belief that it can be solved. And through collaboration, dedication and commitment, problems get solved in new, surprising ways.

Cost effective solutions

Everyone in our industry is facing new realities these days. Uncertainty has increased in the wake of falling oil prices, increasing concerns over carbon emissions and climate change. At the same time, increasing resource complexity, over-specification and increased regulatory complexity have driven costs into an upward spiral.

Our response is to standardise our operations, simplify solutions and focus on value-adding activities. Our ambition is to be lean and stay competitive at all times.

Increased recovery

We are endeavouring to push reservoir recovery to the next level. We already lead the way in improved oil recovery (IOR), with our average expected recovery rate on the Norwegian continental shelf oil fields as high as 50%, while the industry world average is about 35%.

However, we believe it is possible to do even better, and our ambition is now to recover 60%. It requires us to keep innovating. We have established a state-of-the-art IOR centre in Trondheim, Norway, to help improve our recovery rates even further.

Collaborating with GE

Enhanced collaboration runs as a common thread throughout the improvements we are making. Our teams work together in new ways, across the company, with regulators, authorities and with our industry partners.

An excellent example is our collaboration with GE. We have come together to identify new approaches to create efficient, low-cost technologies for oil and shale gas production while simultaneously reducing emissions. We believe that the challenge of achieving more efficient and sustainable energy production is too large for one entity to address alone. That is why collaboration is a key component to achieving important positive change.

Statoil Innovate

Innovation is about opportunities. Taking on the challenge of meeting energy demands creates tremendous opportunities to invent, innovate and improve. “Innovate” is Statoil's channel dedicated to challenge-driven open innovation, aimed at encouraging external experts to bring their ideas and work with us.

In addition to the challenge owner, we work closely with colleagues across disciplines to secure a high-quality evaluation process and a smooth handover to relevant investment, development or implementation channels.

Statoil Technology Invest

Technology and innovation are critical for us to reach our ambitious production and efficiency goals by 2020. Statoil Technology Invest (STI) is looking for young companies with exciting technology that will improve the effectiveness of Statoil’s oil and gas or renewables operations.

Through equity investments and active participation on the boards of these small companies we help management accelerate their companies’ development, spurring them on to become profitable and independent suppliers to Statoil and the rest of the energy industry.

*All figures from Annual report unless otherwise stated