Statoil (ADR) (NYSE:STO)
An integrated oil and gas company, headquartered in Stavanger, Norway which is based on both production and reserves.
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I like non-u.s. producers and this one although state owned has discovered new finds in the artic. It is also a green stock
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world needs oil
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Norway is one of the highest growth markets globally, after Cyprus, Slovenia, and perhaps Russia.
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This is a great time to buy STO. Near its 52-week low. Oil prices will be back on the rise after the New Year.
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Statoil (STO) is a Norway based integrated oil and gas company and a leading producer on the Norwegian continental shelf. It is the world’s largest sellers of crude oil and a substantial supplier of natural gas to the European market. The company in the recent years has ventured in new international areas of the Gulf of Mexico, Angola, Azerbaijan, Algeria and Iran. STO is also in talks with PetroChina for deep-water drilling in the South China Sea through production-sharing agreements.
The company has a strong focus on natural gas, which is the new generation fuel. It was short listed as potential partners for Gazprom’s giant Shtokman natural-gas field in Russia. Based on STO’s past performance, the chances of it being selected are high. In the event of the deal materializing it would act as a major boon for the company. The Norwegian government being the majority shareholder is in favor of STO as it is unlikely to be burdened with unfavorable policies.
Visualizing the risk, STO’s presence in politically unstable areas of Algeria, Angola Venezuela and Iran is exposed to greater political risk. Moreover, the Gulf of Mexico assets are largely undeveloped, which is expected pose a problem for the company going ahead. Additionally, the company is a small player as compared to oil giants. It would be difficult for the company to get into large projects without a partner. This would limit its exposure to small projects alone. On the back of company’s strong fundamentals and growth oriented strategies, the stock is expected to march northward going forward.
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Oil. Current low prices bound to rise. What else needs to be said?
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undervalued oil, pays decent div and is expanding drilling properties,
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Unless fossile fuel becomes illegal, this is a good place to put some money. A specialist in deep sea oil exploration. Working world wide. Majority owned by the Norwegian state.
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great stock
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Oil reserves
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A politically stable oil source with low risk of disruption. Plus, the primary trend on oil is clearly up. Further, Statoil is undervalued based on its status as largely state-owned.
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International oil and oil will become scare with corresponding upward price trend. It has been beaten down recently and current price is probably near a short term low.
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Solid cautious company with
great new prospects.
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Statoil is one of the most experienced and successful seekers for new oil deposits at sea. Its being Norwegian doesn't hurt it either; those folks have a reputation for hard work, ingenuity, and good business sense.
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