Statoil reduces capital spending in upstream U. S. Projects in order to increase cash flow and profit. | Russell T. Rudy Energy LLC
Norwegian oil company Statoil had virtually no U. S. production in 2010 according to a recent article in “Rigzone”. However, now about 10% of its worldwide output is from shale projects here. Most recently, production was around 210,000 barrels of oil equivalent per day (boepd), primarily from the Bakken (North Dakota), Eagle Ford (South Texas) and Marcellus (Pennsylvania) shales. In fact, original plans called for 500,000 boepd from shale formations by 2020. Later this was revised down to 300,000. Statoil Chief of U. S. onshore operations, Torstein Hole, stated that while the latter figure is easily achievable, it would require a capital commitment the company is not willing to make at this time. Consequently, he anticipates output stabilizing at its current level.
Alternatively, Statoil cites competition from other investment opportunities and the need to save cash and return more to shareholders as the reasons for decreased capital expenditures in U. S. shale projects.
To read the article in its entirety, please go to www.rigzone.com/news/article.asp?hpf=1&a_id=134691&utm .
