Statoil Surprised by Loss as Oil Prices Hit Profits

The transcript discusses the financial struggles of major oil companies like Statoil and BP, highlighting their reliance on borrowing to pay dividends. It questions whether other companies like Total and Exxon will face similar issues. The weakening refining business is also noted as a challenge. Norway's sovereign wealth fund, supported by oil revenues, is examined, and the commitment of European companies to maintain high dividends despite financial turmoil is discussed.

What is a major financial challenge faced by oil companies like Statoil and BP?

• Excessive profits

• Struggling to pay dividends without borrowing

• Inability to borrow money

• High production costs

What is the expectation for companies like Shell and Exxon in the current oil market?

• They will focus solely on new projects

• They will outperform BP significantly

• They will face similar challenges as BP

• They will not pay any dividends

What has been a key support for oil companies during the slump, which is now weakening?

• Refining business

• Renewable energy investments

• Oil exploration

• Natural gas production

How is Norway's sovereign wealth fund related to Statoil's performance?

• It is heavily dependent on Statoil's profits

• It is entirely invested in Statoil

• It is unaffected by Statoil's performance

• It has been drawing money out due to changes

What is the core strategy of European oil companies regarding dividends?

• Reducing dividends to invest in new projects

• Maintaining high dividends despite market challenges

• Eliminating dividends to focus on growth

• Increasing dividends annually