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Sector Update: Energy

Energy stocks turned sharply lower Monday with a steep afternoon decline for crude oil, with the NYSE Energy Sector Index slipping 1.8% while shares of energy companies in the S&P 500 were down almost 1.6% as a group. Crude oil for December delivery settled $1.76 lower at $78.78 per barrel while December natural gas jumped 17 cents to finish at $4.05 per 1 million BTU.

In company news, Statoil ASA ( ASA ) declined Monday despite the state-owned Norwegian energy giant today saying the new Johan Sverdrup field in the North Sea could produce nearly $200 billion in revenue for the company over its expected 50-year life.

According to STO, the 200 square kilometer field will be developed in stages, with the company and its partners currently considering various development scenarios to ensure that the first construction phase forms the basis for an overall, integrated development. A final plan is expected to be agreed on by the parties by February 2015.

Based on early estimates, STO sees the new field generating between 550,000 to 650,000 barrels of crude oil per day at full production and producing as much as 1,350 billion krone ($198.5 billion) over its expected 50-year life.

STO American depository shares were down more than 2% at $22.37 apiece shortly before the closing bell, just a penny above its intra-day low. The stock has traded within a 52-week range of $22.08 to $31.95 per ADS, retreating almost 5% over the past year heading into Monday's session.

In other sector news,

(+) EEP, Q3 revenue rises 8.5% year over year to $1.94 bln, topping consensus view by around $70 mln. EPS of $0.25 lags Wall Street expectations by $0.01 per share.

(-) BWP, Reports Q3 net income of $29.2 mln, or $0.12 per share, down sharply from $62.3 mln profit last year but matching Capital IQ consensus. Revenue rose 1.2% year over year to $278.9 mln, also beating estimates by around $25.67 mln.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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