Equinor ‘Well Positioned’ for Future Gas Investments, CEO Says
And as your take on these results and
what it tells us about how the business
is positioned for the quarters ahead.
Ed, good morning.
Yes, we are well positioned to the to
the future.
We had very strong results this quarter,
as you mentioned, driven by production
growth in in oil and gas and really
solid operation, enabling a very strong
cash flow from operations of 5.8 billion
U.S.
dollar.
We have an active project portfolio both
in renewables and also in oil and gas.
So we are well positioned for future
earnings as well.
And of course, we focus on the European
gas storage story, which is seeing what
quite a remarkable turnaround, of
course, in the last two years on this.
What what is the investment case for
Ecuador?
Now, you were essential during the start
of that conflict, Russia invading
Ukraine and the gas challenges there.
There’s an argument that you’re less
essential now.
What is the investment case for your
business at a place and a time when the
inventories and the stockpiles of gas
here in Europe are full?
You’re right, of course.
The gas prices are substantial lower
prices now than they used to be, you
know, pre-war and also just before the
war and during the war, and have been so
essential that we’ve been able to
produce gas to Europe to to have energy
security for Europe.
But we’re still producing at an
extremely high level for gas production
from Norway.
Remember, we can deliver a gas to all
the liquids hubs in Europe and we can do
it at a very low production and
transportation costs.
So we are very much well-positioned for
future gas investments from the
Norwegian Continental Shelf also to gas
deliver gas to Europe that will need it
also in the future.
And also remember that the gas prices in
Europe are now set by the LNG price.
Before it used to be set by the pipe gas
costs and now it’s set by the LNG costs.
So we see a very good investment case
for gas also in the future towards
Europe.
What’s your outlook for gas prices then?
Towards the end of this year,
particularly when we think about the
Middle East tensions as well and as.
Yes, sir.
So what what you said earlier is Europe
is in well position in terms of gas
storage Now, it’s been another mild
winter in Europe.
So Europe in a good position in terms of
storage for next year and are able to
fill up the storages.
But we know that the weather, the energy
supply, the demand increase in China
also is home industry demand.
Pick up in Europe will all affect the
prices we see.
The market is fairly well
now balanced, but there are, you know,
small changes in energy geopolitics and
the supply chain disruption, you know,
can have a big changes in the into gas
prices.
So we are thinking it’s a slight upside
risk to higher prices in that in the
future.
The chief executive officer of Norway’s Equinor, Anders Opedal, said the company is still producing gas at “extremely high level” and that it is “well positioned for future gas investments.” Speaking on Bloomberg Television, Opedal also said he sees a slight upside risk to gas prices in the future. Equinor saw a decline in first-quarter earnings due to lower gas prices, but the results topped those in the prior quarter as fields at home and in the Americas drove up liquids output.
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