Statoil Kept Its Head Above Water During European Crisis
Statoil worked really hard over the past year. Espeically despite the fact that the European markets have been a mess over the last year. 2011 may have been a tough year for Statoil, but they seemed to have some out on top. Dan Caplinger explains how STO did over the 2011 year.
How did Statoil advance this year?
Statoil isn’t the best known Big Oil company, but it’s an important player in the world oil market. The Norwegian company is strategically placed near the North Sea’s energy reserves, in which the company recently announced a huge new find.
Acquisitions have increasingly played a big role in gaining exposure to promising new exploration and development areas. Statoil acquired Brigham Exploration earlier this year to get into the lucrative Bakken shale play, while Marathon Oil (NYSE: MRO ) spent a whopping $3.5 billion to pick up significant assets in the Eagle Ford. Statoil’s move follows previous buys of U.S. shale plays, including Marcellus acreage from Chesapeake Energy(NYSE: CHK ) and Eagle Ford exposure from SM Energy (NYSE: SM ) .
But Statoil has also found opportunities on its own. Statoil got some good news earlier this month, as it won a contract for exploration rights to ultra-deepwater fields off the coast of Angola. Among the other winners were Cobalt International Energy (NYSE: CIE ) andTotal (NYSE: TOT ) , but if the fields prove as lucrative as similar formations off the Brazilian coast, then there should be plenty of oil for everyone. Statoil recently got an exploration license in Indonesia as well.
Statoil has positioned itself well to benefit from currently high oil prices. As long as the oil market stays favorable, Statoil should be able to buck any negative trends from Europe.
It took a lot of hard work to make sure that they didn’t sink with the European market. This shows the strength of STO. This give me great hope for 2012 so be sure to look into this stock!
Quotes taken from report by Dan Caplinger, Read the entire article here.
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