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Norwegian oil strike threat rises as union breaks off wage talks

  • Norwegian onshore oil workers break off pay negotiations with employers, increasing the risk of a strike, as the industry fails to achieve full or partial deals in three separate discussions with workers on offshore platforms, supply bases and at oil service companies.
  • The Industry Energy union, which represents more than 75% of 5K onshore workers at companies like Statoil (STO) and BP, ended talks yesterday; negotiations now move to public mediation, where failure may result in a strike.
  • A strike would cut off ~50K bbl/day of oil at Exxon's (XOM) Ringhorne, Jotun and Baler fields, 28K bbl/day of oil and 11M cm/day of gas at GDF Suez’s (GDFZY) Gjoea field, and 22K bbl/day of oil from STO’s Vega field that goes through Gjoea.
Comments (5)
  • Overanalytical
    , contributor
    Comments (842) | Send Message
     
    Maybe this will give me the opportunity I've been waiting for to start a position
    4 Jun 2014, 11:15 AM Reply Like
  • saratogahawk
    , contributor
    Comments (2400) | Send Message
     
    Inn which one?
    4 Jun 2014, 11:17 AM Reply Like
  • Overanalytical
    , contributor
    Comments (842) | Send Message
     
    Sorry should have clarified. BP is the one I want to start in
    4 Jun 2014, 11:27 AM Reply Like
  • pigeonguy
    , contributor
    Comments (123) | Send Message
     
    The oil companies are in a good position on this one. The workers go on strike, less crude is produced, the news travels fast and the price of Brent Crude goes higher. This sounds like heads the oil companies win and tails the oil companies still win. I am long oil companies and oil services.
    4 Jun 2014, 02:35 PM Reply Like
  • User 353732
    , contributor
    Comments (4975) | Send Message
     
    Norway is becoming notably less attractive as an oil and gas investment area, between rising taxes and worker extortion. There are so many investment opportunities today for Big Oil that Norway does not have the negotiating leverage it had even 3 years ago,
    4 Jun 2014, 03:44 PM Reply Like
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