Statoil’s Exit from Alaska ‘Disappointing’ -NOIA
Randall Luthi (Photo: NOIA)
NOIA President Randall Luthi, issued a statement on Statoil (STO)’s decision to exit the Alaskan Arctic, calling the departure “disappointing” yet “understandable” due to a tough economic and regulatory climate.
The Norwegian oil major said on Tuesday it will pull out of Alaska as its exploration leases in the Chukchi Sea no longer looked competitive.
"Statoil's decision to withdraw from the Alaskan Arctic is disappointing yet understandable given current tough economic and regulatory conditions,” Luthi said. “These are challenging times for the oil and gas industry with continued low commodity prices making for hard choices, and I know this was a difficult one for Statoil. The company has a substantial investment in the U.S. Arctic and had hoped to become a producer of both energy and economic growth there for Alaskans and for our nation.”
"Statoil's decision to withdraw from the Alaskan Arctic is disappointing yet understandable given current tough economic and regulatory conditions,” Luthi said. “These are challenging times for the oil and gas industry with continued low commodity prices making for hard choices, and I know this was a difficult one for Statoil. The company has a substantial investment in the U.S. Arctic and had hoped to become a producer of both energy and economic growth there for Alaskans and for our nation.”
"Hopefully, another company will step in to fill the void left by Statoil,” Luthi continued, “but given the harsh economic climate and the difficulty obtaining lease extensions, the outlook is rather bleak.”
