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The Norwegian state -supported energy group, which dropped oil out of its name as part of a press on renewable energies, turns back to fossil fuels in search of the shareholders’ returns.
EquinorOn Wednesday, in Statoil, renamed 2018, it said that the production of fossil fuels and the halving of the expenses for renewable energies had claimed half of the managing director Anders Opedal “to create the shareholder value for the coming decades”.
According to its new goals, the company plans to produce 2.2 million Barrel oil equivalent a day by 2030, 10 percent higher than previous expectations.
Its goal for the capacity of renewable energies reduced from an earlier goal from 12GW-16GW to 10 GW-12 GW. Investments in renewable energies and other low -carbon technology between 2025 and 2027 are reduced to $ 5 billion, from about $ 10 billion before without project financing.
“Equinor is well positioned for further growth and competitive shareholders,” said Opedal when the company published its results for 2024.
The group now expected a stronger free cash flow that is achieved that “the portfolio is highly concerned, the investment prospects for renewable energies and low -carbon solutions reduce and improves the costs in our organization,” he added.
Opedal said the strategic direction of the company had not changed and still aimed at reaching the emissions of the “Net Zero” by 2050.
“We further reduce emissions from our production and build profitable business in renewable energies and low -carbon solutions,” he said. “By adapting to (the market situation and opportunities), we will create the shareholder value in the coming decades.”
Equinor’s step takes place to Shell and BP Diluted plans for diversification Away from fossil fuels under the pressure of the shareholders to continue to achieve oil-and-gas level returns.
Analysts assume that BP will fall for renewable capacities by 2030 on an investor day this month.
Vitol, the world’s largest independent energy dealer, said this week that global demand for oil would only fall at least 2040While US President Donald Trump promised last month to “drill, baby, drill” to take advantage of the country’s oil resources.
Equinor’s announcement is made after it stated in October close 10 percent share In the world’s largest offshore wind developer Ørsted.
This step will bring Equinor closer to its renewable energies for less money than it would cost to develop the capacity on its own.
On Wednesday, the managing director of Totalenergies, Patrick Pouyanné, said “not worth” to pursue offshore wind projects in the United States for the next four years because they “have little chance” due to Trump’s opposition.
Total put a planned wind farm off the coast of New York and New Jersey in November, but Pouyanné said that the group would return to the project at a later date.
Nevertheless, the managing director said that the total number in the United States would continue to invest in renewable energies and that he expected projects that are based on the support of the US states, and not in the federal government that would continue.
The comments came as a total net profit of $ 18.3 billion for 2024, a decrease of 21 percent compared to the previous year on the back of the oil markets and a decline in the refinery edges.
However, the company said it would reduce its organic investment target for $ 18 billion to $ 17 billion in 2025.
