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As part of advancing renewable energy, Norwegian state-backed energy groups have removed oil from the name, which is back to fossil fuels in search of shareholder returns.
Equinor, which renamed from Statoil in 2018, said Wednesday it plans to increase fossil fuel production and cut its spending on renewable energy in half, CEO Anders Openal said its aim is “to create shareholders” It’s worth decades.”
Under its new target, the company plans to produce 220,000 barrels of oil per day by 2030, 10% higher than previously expected.
From the previous 12GW-16GW target, it lowered its renewable energy capacity target to 10GW-12GW. Between 2025 and 2027, investment in renewable energy and other low-carbon technologies will drop to $5 billion, down from about $10 billion before, excluding project financing.
“Equinor’s further growth and competitive shareholder returns have a good position,” Opedal said, who released 2024 results.
The group now expects “to reduce investment prospects for renewable energy and low-carbon solutions through advanced portfolios and increase the costs of our organization”.
Opedal said the company’s overall strategic direction has not changed and is still aiming to reach “net zero” emissions by 2050.
“We continue to reduce emissions in production and build profitable businesses in renewable and low-carbon solutions,” he said. “By adapting [the] Market conditions and opportunities, we will create shareholder value in the coming decades. “
Equinor’s move is to diversify from fossil fuels under pressure from shareholders under Shell and BP dilution schemes to continue to deliver oil-gas-level returns.
Analysts expect BP to decline or expand its renewable capacity target by investor day this month.
Vitol, the world’s largest independent energy trader, said this week that global demand for oil will not decline until at least 2040, while U.S. President Donald Trump promised “drilling last month , baby, drilling” to leverage the country’s oil resources.
Equinor’s announcement comes in October that it bought nearly 10% of the shares of Ørsted, the world’s largest offshore wind developer.
This move will bring Equinor closer to its renewable energy targets for less money.
On Wednesday, Totalenergies CEO Patrick Pouyanné said it was “not worth it” to pursue offshore wind projects in the United States over the next four years because they “seldom have the opportunity to get authorization” due to Trump’s opposition.
The total puts the planned wind farm on the New York coast and New Jersey in November, but Pouyanné said the team will return to the project later.
Nevertheless, the CEO said the total will remain invested in renewable energy in the U.S., and he expects projects supported by U.S. states rather than federal government will continue.
Comments reported a total net income of $18.3 billion in 2024, down 21% from the previous year, while weaker net income and refining margins from the oil market have declined.
But the company said it would reduce its 2025 organic investment target from $18 billion to $17 billion.
