Price level stops StatoilHydro projects

March 6, 2009

Øystein Michelsen, Executive vice president, Exploration & Production Norway. Photo: StatoilHydro.

The global market price of oil has dropped more than 100 USD over the last nine months. StatoilHydro might stop 40 planned projects because of the current price level, reports the Barents Observer.

StatoilHydro believe that the current price level for oil will last for a long period. This force the company to adjust some of their future development plans. The costs are too high compared to the income. Therefore the Norwegian energy company is evaluating 40 of their planned projects on Norwegian continental shelf.

Øystein Michelsen in StatoilHydro calls on the entire Norwegian petroleum industry to cut costs in order to manage trough the period of low prices. He believes that if nothing happens, than it will have consequences for many companies. It is especially new projects which will be difficult to make profitable.

Source: BarentsObserver.com / DN.no