Statoil ASA


Statoil ASA

            Statoil ASA is a multinational organisation with headquarters based in Stavanger in Norway[1]. The company specializes in gas and oil as a petroleum company. It has been noted that Statoil operates in more than thirty six nations, surveys done by Forbes magazine indicated that Statoil, in reference to the revenue is positioned at number eleven in the global gas and oil organisations; and position twenty six in the world among the largest organisation dealing with oil and gas. The workforce of Statoil ranges to more than twenty three thousand employees.

Statoil came into operations in 2007 following the merger of the Norsk Hydro department dealing with oil and gas and Statoil. It has been noted that the Norwegian government is the biggest shareholder with an average of sixty seven shares of Statoil; thirty three percent of the remaining shares are owned by the general public. Ministry of Petroleum and Energy in Norway controls the distribution of the ownership interests. Baerum offices are used for international operations and corporate functions[2].

SWOT analysis

SWOT analysis on Statoil is an important component in identifying the position of the organisation in the oil and gas market. The operations of Statoil organisation are channelled to development, exploration and production of natural gas and oil along the Norwegian Continental Shelf (NCS), but the organisation has diversified to renewable sources of energy. The strengths of Statoil indicated that the organisation is positioned in a strong market that is promising, Statoil has operations that are vertically integrated and that the Statoil has a wide customer base[3]. The Weaknesses with Statoil organisations is in that the organisation has a weak asset concentration, the reserves are declining and that the organisation over depends on Europe for the generation of revenues.

The Opportunities with Statoil Company is in that the organisation has diversified the available asset base, the demand for the natural gas in the Europe is ever high, diversification into renewable sources of energy and that the organisation has discovered new reserves of oil and natural gas[4]. The threats faced by the Statoil are pegged on the ever increasing competition, instability of international political operations and by the fact that the industry and the economic spheres are facing downturns that are unpredictable.

Statoil Investments

The consumer market of energy is experiencing rapid changes with an accelerated need for renewable energy. Statoil has responded to the changing market through developing alternative sources of energy mainly from the wind power. Statoil in the recent past has been concerned on investing in wind energy as part of developing renewable energy. Statoil asserted that offshore winds had great potential, that were partially exploited; with Statoil targeting to be the world biggest organisation dealing with the offshore wind operations. Statoil is in the processes of disposing wind power production sites in the mainland and farms, commonly referred to as the onshore wind mills.

Information from the manufacturing, Processing and Renewable Energy Vice President indicated that the firm was pleased concentrating on the core competencies pegged in the delivery of renewable energy as part of the responding to the changes in the world[5]. The firm was carrying out exits in areas of onshore portfolio, and that the firm will continue coordinating with the new owners of the onshore portfolios.

In building a profitable business in offshore renewable energy in wind market, Statoil has collaborated with Stackraft of England, the project in Sheringham Shaol is expected to supply energy to more than two hundred and twenty thousand households in Britain. The project is still under construction and it is expected to be operational in the near future.  The project has eight offshore wind turbines that are fixed with the capability of delivering three hundred and seventeen Megawatts of power. The development construction is spearheaded by Statoil[6].

Statoil has also invested with Forewind consortium, it is expected that the new project will be one of the most magnificent development in offshore wind turbines. The partnership will spearhead the building of Dogger Bank Field. It is expected that the project will generate more than thirteen Giga Watt of energy[7].

Statoil has also invested in the wind turbine floating on the sea commonly known as the Hywind. The project is the first of its kind in the world, which backed up with technological development. The testing of the new technology was carried out in Karmoy in Norway and it’s expected that the commercialisation of Hywind will supply the much needed energy resources basing on the rapid socialisation and globalisation. Statoil is reflecting on innovations, the company has invested heavily in research and design in making sure that it’s the market leader in the renewable sources of energy[8].

Statoil developed new ideas basing on environmental pollutants and emissions of the greenhouse gases (GHGs) in creating a new market edge, in alleviating the challenges facing the world. The global trends indicates that the world after the support of the renewable energy in aspects of the products and services. Statoil is strategically placing its production and services in line with the demands of the target market.

New Product Development (NPD

New Product Development (NPD) employed by Statoil was pegged on generation of ideas, idea screening, concept development and testing, business analysis, Beta testing and market testing, technical implementation, commercialisation and new product pricing. Idea generation was done after working out the SWOT analysis as defined above. Statoil research and design (R&D), consumer trends, market trends, focus groups, competitors, salespeople and workforces among others were applied in defining the product features and new product lines[9]. Ideas on renewable sources of energy were brainstormed and generated, which was then subjected to the second stage known as the idea screening.

Idea screening was applied in eliminating unclear concepts and clarifications were made on the Statoil’s target market, growth forecasts, current and expected pressures in the market, possible market trends and industry sales, technical feasibility of the ideas and the profitability of the project of renewable sources of energy.

Concept development and testing stage involved developing engineering and marketing details relevant in the generation and distribution of renewable sources of energy. Issues of intellectual property were looked at, target market was revisited, the features of the product were also revisited, benefits of the project were discussed, the possible reaction of the target market to the new product was spotlighted, model of effective generation of the new product was brainstormed, feasibility of the project was revisited and the cost of production was revisited. The concept of renewable sources of energy was tested through random questioning of the target consumers on their opinions on the project.

Business analysis stage addressed issues of selling prices of the new product basing on the customer feedback and the competition. The sales volumes were estimated through the application of Four Woodlock equation depending on the size of the target market. Break-even point was determined through estimation of the probable profits.

Market testing and Beta testing were carried out by Statoil through mock up and through a physical prototype. Statoil understands that testing the product is essential in defining the preferences of the target market, mainly in areas of packaging of the services. Customer reviews were conducted in diverse focus groups, the results enabled Statoil to make any relevant adjustments in accordance with the customer preferences to foster customer acceptance of the new product[10].

Statoil is in the phase of technical implementation, commercialisation and setting new product pricing for the renewable sources of energy. Statoil has partnered with other likeminded organisations in delivering the desired results to the target market. Areas being addressed identifies with initiation of new programs, finalizing quality management system, estimation of resources, planning engineering operations, scheduling, collaborations with other stakeholders, planning issues of logistics, setting contingencies and monitoring among others[11]. Commercialisation of the renewable sources of energy by Statoil will involve product launching, setting promotions and advertisements, distributing the product to the consumers and setting a clear critical path analysis. New product pricing will involve analyses on the impact of the product portfolio on the market, setting competitive technologies, overdoing the existing systems, setting clear value segments, defining product costs and forecasting revenue, unit volumes and the profits.

Sustainability of Statoil projects

Sustainability of Statoil projects are pegged on past and current performance and the key targets that are in line with the direct needs of the market. Statoil has been committed in meeting the growing energy needs in the world in an environmentally, socially and economically responsible ways[12]. Statoil has the belief that doing business in a responsible way is not enough and that sustainability and social challenges must be addressed in spotting opportunities in the business development and in innovations. Statoil engages in developing mechanisms of meeting the challenges, developing sound principles and policies, effective governance, dealing with risk management, engaging all the stakeholders on the current and intended developments, liaising with the suppliers and the partners and developing competitive capability building and training as part of the product development processes in the development of renewable sources of energy.

Statoil argues that hitting global prosperity is propelled by reliability, efficiency and supply of energy that is affordable to the target market. The energy needs are constantly growing with the rise of the human population and industrialisation of nations[13]. Statoil in committing in increasing the energy output while at the same time reducing emissions which lead to negative environmental impacts.

Statoil is backed by the technology, capital and the skills in creating sources of energy that offer future solutions and not negative environmental impacts as in GHGs. The challenges faced by Statoil is addressing external context that are ever changing, obtaining the licenses to operate in different nations, creating a competitive edge in carbon efficiency and exploiting the natural gas among others.

Statoil has the ambitions of hitting a double digit in the production of renewable energy by 2020[14]. Statoil being a global leader in renewable sources of energy exposes the organisation to potential liabilities, new responsibilities and diversity in stakeholder interfaces. Statoil has managed to deal with risks that are non-technical in nature, while at the same time propelling business performance is an important tool in dealing with the current challenges. The current challenges faced while venturing into a new production line identify with entry into frontier and new regions which display sensitive and complex social, political and environmental contexts[15].



Challenges faced by Statoil

It has been noted that Statoil also faced challenges in pursuing of unconventional resources that require diversity of technologies, which were not fully exploited before. Onshore exposure maintains the long term relationship with the target market. Oil and gas organisations are expected to actively contribute in creation of local value, which at times are pegged to content requirements to investments at the social or national levels[16]. Statoil is expected to actively contribute to building of infrastructure, enhancing access to affordable energy, creating jobs at the local levels, contributed to supplier development and meeting social needs[17].

Statoil admitted that acquiring the relevant licenses to operate in various jurisdictions is a challenge; surveys showed that external context is subject to diversity of changes, which has in return presented opportunities and challenges within Statoil. Statoil believes that trust with the current and future stakeholders is one of the major licenses that allow the organisation to operate. Statoil is addressing the issue of diminishing resources through development of reserves and extending explorations with minimal influence to the environment and the people[18]. Statoil top management teams has the notion that business development, operations and execution is linked to the timely identification of social, environmental and other non technical risks. Statoil is committed in working locally in Norway and internationally in creating value with all the stakeholders in an inclusive and transparent manner.

Statoil is gearing at developing a competitive edge through establishment of efficiency in carbon emissions in addressing the current challenges with environment and social arena, as part of the business development and innovations. The corporate strategy and the approach to sustainability are linked to growth and efficiency in low carbon technologies and also in renewable sources of energy. Carbon efficiency and HSE gives Statoil the green light to operate, in a world faced with diminishing resources.

2012 International Energy Agency’s World Energy Outlook showed a rapid increase in the exploitation of renewable sources of energy as the world diversifies in increasing need for more and more energy. Statoil will reduce negative environmental impacts brought around by burning of hydrocarbons; by lobbying for increased use of renewable sources of energy and production of low carbon oil and gas.

Natural gas supply in a reliable manner is one f the concerns of Statoil, as a way of resolving climate and energy dilemma. Ratings have shown that Statoil is positioned second in the supply of natural gas considering European market. Statoil believes that natural gas has sustainability and attractive as a future energy carrier, in areas dealing with cleanliness, abundance, fossil based energy and on the price competitiveness. The main challenge is developing a cost effective systems and enhancing sustainability.

Innovation process on new product development requires scientific and creativity analysis. Statoil has heavily invested in research and design to cultivate a culture of innovations within the organisation as a way of enhancing a competitive edge. Renewable sources of energy are the current trend that consumers are sensitive with, an indication that Statoil is sensitive to the exact needs of the target consumers[19]. Achieving execution and inspiration calls for combined efforts of the business growth, organisational culture and the will to develop to the next levels with line to the changing needs of the target market.

Organisational Culture

Surveys show that Statoil has been sensitive on the organisational culture. Organisational culture influences everyone and everything within and outside the organisation. A positive organisational culture encourages high productivity through the motivated human capital. Top management teams within Statoil through experience believe that an all inclusive organisational culture cultivates high productivity, high morale, minimised costs, high profits, high safety, efficiency in the supply chain, minimised claims and injuries, low rates of insurance, high customer service satisfaction, high retention of employees, low absenteeism of employees, fair recruiting of employees, sound relations in the management of unions and the organisation gets open in accepting changes[20].

Other benefits of a positive organisational culture identify with high involvement of the stakeholders, effective leadership, productive meetings, smooth mergers, high cooperation among the members, improved teamwork, high responsibility of the human capital, enhanced working relationship and high levels of happiness, pleasure, satisfaction and joy among the people associated with the organisation. It can be argued that doing away with the organisation culture spells doom to the future of the organisation.

Risk management

Risk management within Statoil is part of the management approach; this is specifically in dealing with economic, financial and political risks in making sure that the projects attached to the renewable sources of energy are a success. Statoil is committed in reducing possible harmful effects as the organisation strive to strike an edge in developing opportunities and benefits to the whole life cycle of the project. Statoil address risk management through multi-disciplinary approach, country risk assessment, HSE risk management, early phase risk management, integrated impact management and through human rights due diligence.

Statoil has diversified operational and strategic decisions in solving problems brought around by the challenges in exploitation of renewable energy sources to the commercial levels. The field has not been fully exploited, indicating that research and design are essential in delivering the desired results[21].


Statoil has truly shaped the energy sector mainly in Europe in the last forty years of operations. It is the high time for Statoil to exploit the potential within developing nations like in Africa and avoid overreliance on the European markets; this will encourage diversification of revenues and building new sources of competitive edge. Statoil should also diversify to wave power generation, solar power generation, tidal power generation, radian energy generation, geothermal energy generation, biomass energy generation and nuclear power. The organisation has experimented on a number of energy sources, but commercialisation is pending. Renewable sources of energy are promising to conserve the environment.


Statoil has existing market in over thirty nations in the international arena in meeting the energy needs of the target customers. Statoil has been in the energy market for more than forty years, an indication that the organisation has the experience, resources and capital to explore the renewable sources of energy to the commercial levels[22]. Statoil believes that energy provided to the consumers should be produced and delivered in a responsible way, through constant development of innovative and creative business solutions. There are ethics and values that guide Statoil through an all inclusive organisational culture[23].




Bibliography Statoil. 2013. (accessed July 11, 2013).


[1] Statoil. 2013. (accessed July 11, 2013).

[2] Statoil. 2013. (accessed July 11, 2013).

[3] Statoil. 2013. (accessed July 11, 2013).

[4] Statoil. 2013. (accessed July 11, 2013).


[5] Statoil. 2013. (accessed July 11, 2013).

[6] Statoil. 2013. (accessed July 11, 2013).

[7] Statoil. 2013. (accessed July 11, 2013).

[8] Statoil. 2013. (accessed July 11, 2013).

[9] Statoil. 2013. (accessed July 11, 2013).

[10] Statoil. 2013. (accessed July 11, 2013).

[11] Statoil. 2013. (accessed July 11, 2013).

[12] Statoil. 2013. (accessed July 11, 2013).

[13] Statoil. 2013. (accessed July 11, 2013).

[14] Statoil. 2013. (accessed July 11, 2013).

[15] Statoil. 2013. (accessed July 11, 2013).


[16] Statoil. 2013. (accessed July 11, 2013).

[17] Statoil. 2013. (accessed July 11, 2013).

[18] Statoil. 2013. (accessed July 11, 2013).

[19] Statoil. 2013. (accessed July 11, 2013).


[20] Statoil. 2013. (accessed July 11, 2013).

[21] Statoil. 2013. (accessed July 11, 2013).

[22] Statoil. 2013. (accessed July 11, 2013).

[23] Statoil. 2013. (accessed July 11, 2013).



Last Completed Projects

# topic title discipline academic level pages delivered
Writer's choice
1 hour 32 min
Wise Approach to
2 hours 19 min
1980's and 1990
2 hours 20 min
pick the best topic
2 hours 27 min
finance for leisure
2 hours 36 min

Are you looking for a similar paper or any other quality academic essay? Then look no further. Our research paper writing service is what you require. Our team of experienced writers is on standby to deliver to you an original paper as per your specified instructions with zero plagiarism guaranteed. This is the perfect way you can prepare your own unique academic paper and score the grades you deserve.

Use the order calculator below and get ordering with now! Contact our live support team for any assistance or inquiry.

Type of paper Academic level Subject area
Number of pages Paper urgency Cost per page: