Norwegian energy company shifts focus back to oil and gas

Norwegian energy giant Equinor is cutting its renewable energy investments in half over the next two years while boosting oil and gas production by 10%.

Simon Jack reports for BBC.

In short:

• Equinor will reduce its renewable investments to $5 billion from $10 billion, citing slow returns and hesitant buyers, while abandoning a pledge to allocate half its fixed assets budget to renewables by 2030.
• The company remains committed to the controversial Rosebank oil field in the North Sea, despite a court ruling that its environmental impact assessment was inadequate.
• CEO Anders Opedal warned that low European gas storage levels and increased demand from China could drive up gas prices next winter.

Key quote:

“We are scaling down our investments in renewables and low carbon solutions because we don't see the necessary profitability in the future.”

— Anders Opedal, CEO of Equinor

Why this matters:

Equinor’s shift reflects a broader trend of oil majors pulling back from renewable energy, raising concerns about the pace of the global energy transition. Increased fossil fuel production could slow efforts to cut carbon emissions, while rising gas prices may strain consumers and economies.

Related: Norway boosts oil production, defying environmental concerns