Friday, April 15, 2011

Statoil: The Goose That Lays the Golden Eggs for Norway

Full article at Seeking Alpha:

Statoil (OSE: STL, NYSE:STO) is an international energy company primarily focused on upstream oil and gas operations. The company is headquartered in Norway and employs over 30,000 people worldwide in 42 countries. The Norwegian state is the largest shareholder in Statoil, with a direct ownership interest of 67%.

Statoil has 40 producing oil and gas fields and is one of the world's largest net sellers of crude oil. It is also the second-largest exporter of gas to Europe. Approximately 80% of oil and gas production of the company comes from Norway. The rest of the operations are scattered throughout the rest of the world.

Strategically, Statoil is positioned as a technology-driven upstream energy company. Currently some 80% of oil and gas production of the company comes from Norway, but in the long run this is likely to change. While the production outlook remains stable towards 2020 in Norway, according to Statoil, it's looking for growth elsewhere in the world.

The Norwegian state benefits immensely from Statoil. It is the largest shareholder in Statoil and also imposes high taxes on the profits (above 70%). Therefore, Statoil is the goose that lays the golden eggs for the state of Norway. Looking at the key figures and the peer review, Statoil is a good choice also for an individual investor. It offers an excellent alternative to US- and UK-based oil giants in a stable region.
I have no position in Statoil.

Friday, April 1, 2011

How High Can Gold Go?

No matter which gold price diagram you look, the price of gold seems to be going upwards. We are above old all time highs. Is it just a huge bubble or is the price justified? I wanted to look further than the customary 10 year charts available. In my previous article about gold, I took a look at 110 years of gold price history. In this article I examine gold price history from 1971 until today in various currencies:

• US Dollar
• Australian Dollar
• Canadian Dollar
• Euro
• UK Pound
• Yen
• Indian Rupees
• South African Rand

The article has been exclusively published via Seeking Alpha so you need to read it from there: