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Price Will Rise 12-24 Months, Energy Industry Must Cut Unsustainable Costs: Statoil CEO $STO $UWTI $DWTI

Costs in the energy industry have become unsustainable, and executives must change current practices to grapple with a volatile price environment, the chief of Norway’s largest energy company said Tuesday.

“What we have to address now fundamentally is the structural cost. We have seen a factor of three, maybe more, cost increases in the industry. It is not sustainable,” Statoil CEO Eldar Saetre told CNBC’s “Squawk Alley” during an interview on the sidelines of the IHS CERAWeek energy conference in Houston.

“Exploration is a very long-term part of this industry. We need to think long term, so to cut back significantly on exploration is something I would not like to do because what comes out of exploration now is going to benefit us for the next decades,” he said.

Originally Aired: April 21, 2015
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