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.

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

In Statoil, we don’t debate climate science, we act on it. We recognise the IPCC reports on human-induced climate change and how rising surface temperature will have adverse effects on the environment.

We don’t question the scientific consensus on human-induced climate change. The future quite clearly has to be low carbon, and we support the need to meet the two-degree scenario that gives an 80% chance of limiting average global temperature increases to 2°C. But even in this scenario, renewables will not be able to keep up with demand and in 2035 the world will need to find new oilfields equal to 20 times Norway’s current daily oil production.

What are we actually doing?

We are innovating for a low carbon future, drawing on our expertise and innovating to find new solutions. We are actively working to benefit societies around the world, reduce climate emissions and encourage policymakers to put a price on carbon. Our industry is needed to be part of the solution.

In 2012, we established carbon emissions intensity targets for 2020 for our operated assets. Our targets were long-term and reflect the ambition to be an industry leader in carbon efficiency. But four years ahead of schedule, we were close to achieving our aim of reducing CO2 emissions by up to 800,000 tonnes on the NCS by 2020. We therefore increased our target by 50% to 1.2 million tonnes.

We have established company-wide quantified targets for carbon efficiency in the different business segments in which we operate. They are probably the most comprehensive and transparent goals any oil and gas company has put on carbon emissions—ambitious, but achievable.


Emissions 2020 graph

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