Equinor’s CFO Sees Oil Averaging $65 a Barrel This Year

The video discusses strategies for managing business operations amid oil price volatility, highlighting the importance of a flexible cost structure. It reviews historical oil price trends and outlines the company's preparedness for potential price drops. The discussion includes cash flow management, CapEx guidance, and the company's approach to dividends and buybacks, emphasizing a focus on maintaining a strong balance sheet and strategic capital distribution.

What is a key strategy for businesses to handle oil market volatility?

• Setting up a flexible cost structure

• Ignoring market signals

• Increasing production regardless of cost

• Focusing solely on high oil prices

How did the company plan to remain cash flow positive during past oil price drops?

• By maintaining a strong balance sheet

• By cutting employee salaries

• By increasing investments

• By reducing dividends

What is the company's assumption for the average oil price this year?

• $50 per barrel

• $40 per barrel

• $65 per barrel

• $70 per barrel

Why is there no need to change the CapEx guidance according to the speaker?

• Because of a decrease in oil prices

• Due to seasonal variations in spending

• Because of increased production

• Due to a change in company strategy

What is Equinor's priority when it comes to returning cash to shareholders?

• Increasing CapEx

• Reducing debt

• Cash dividends

• Share buybacks

Under what condition might Equinor consider share buybacks?

• After strengthening the balance sheet

• If oil prices drop below $40

• When CapEx is increased

• If dividends are reduced

What is the expected cash flow after dividends and investments at a $70 oil price?

• $20 billion

• $14 billion

• $10 billion

• $7 billion