A Wall Street Transcript Interview with Oswald Clint of Sanford C. Bernstein & Co., LLC, Institutional Investor All Europe Top 3 Senior Research Analyst Covering the European and Russian Majors and Large-Cap E&Ps: Global Oil Production Shifts from Volume to Value

Wall Street Transcript

67 WALL STREET, New York - January 31, 2014 - The Wall Street Transcript has just published its Oil & Gas: Exploration & Production Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Oil Price Expectations - Shale, Offshore and Deepwater Drilling - Unconventional Resources - Domestic Crude Prices - Capital Expenditures and Consolidation Activity - Frontier Exploration and Development - Offshore Deepwater Oil Discoveries - Offshore Capex Growth

Companies include: Eni SpA (E), StatoilHydro ASA (STO), Total SA (TOT), BP plc (BP) and many others.

In the following excerpt from the Oil & Gas: Exploration & Production Report, an expert analyst discusses the outlook for the sector for investors:

TWST: You cover the European and Russian oil and gas sector, is that correct?

Mr. Clint: Yes, the largest integrated oil companies in Europe, the largest oil and gas companies in Russia and some of the largest pure-play exploration companies in Europe.

TWST: From your perspective, what are the most important drivers in the space that you are watching right now?

Mr. Clint: Firstly there is always the oil price, and today the market has numerous concerns and questions about supply and demand despite prices and the forward curve being relatively stable recently; however, from a company perspective, views on oil prices seem to vary across the companies based on asset selection, for example, who is pursuing LNG and oil sands developments and who is not. However what is happening is that oil prices worries and sticky high costs are causing an increasing number of companies to back away from sanctioning new developments.

In 2013, we had about 10 projects where the majors oil companies took their foot off the project sanction accelerator. Simply put, development costs coming in from the construction sector prevents the majors exceeding their internal hurdle rates on new developments. In a world of flat oil prices with downside risk and finely balanced dividends, shareholder discontent and excessive sector derating, then it's encouraging that they are saying no. Hence I think we will see more companies not sanctioning projects as readily, and this is one of the key drivers in the space that I'm watching.

Then that leads to the question of whether free cash flow of the companies improves as a result...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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