Uchenna Izundu
International Editor
LONDON, Feb. 14 -- Company collaboration will be essential to address the energy industry's changing dynamics as competition increases for resources and as fiscal terms become more stringent, said StatoilHydro AS Chief Executive Helge Lund.
Speaking at CERA Week in Houston Feb. 13, Lund stressed that exploration has become more difficult because of harsher environments, heavier oils, and tougher projects. "Politically, resource nationalism is an emerging reality," Lund said.
The merger of Statoil and Hydro has given the company the clout to face the challenges with confidence. Although companies have prospered from high commodity prices, there is now limited access to exploration and production opportunities, which has intensified competition for them.
"I think we are all now faced with a new game: How to accommodate interests and expectations in a world that has prospered even [with oil at] $50-100/bbl," said Lund.
He argued that the industry is now in a phase of realignment and rebalancing of business models where companies must align interests to create genuine successful partnerships.
But any downturn in the US economy is likely to affect economies in other countries and their demand for oil. "The uncertainty is bigger than it has been in the past," Lund added at a news conference.
Contact Uchenna Izundu at [email protected].
