Norwegian Oil Giant Cuts Green Investment In Half

Norwegian energy giant Equinor is halving its investment in renewable energy over the next two years while increasing oil and gas production, Simon Jack reported for BBC News.

Equinor will cut its renewable investments to $5 billion over the next two years—down from around $10 billion. I Photo: Equinor Facebook

Chief Executive Anders Opedal cited a slower-than-expected transition to low-carbon energy, rising costs, and a lack of long-term customer commitments as reasons for the shift.

He expressed confidence that Rosebank—a massive new oil field in the North Sea—would proceed, despite a recent court ruling that its approval had been granted unlawfully.

The controversial oil field is believed to contain 500 million barrels of oil. Opedal also warned that European gas prices could rise next winter due to lower gas storage levels compared to last year.

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

Equinor will cut its renewable investments to $5 billion over the next two years—down from around $10 billion. The company is also abandoning its goal of spending 50% of its fixed asset budget on renewables and low-carbon projects by 2030, instead planning to increase oil and gas production by 10% over the next two years.