Unlock the digestive of free editor
Roula Khalaf, the FT editor, chooses her favorite stories in this weekly newsletter.
The Norwegian state -backed power group that threw oil from its name as part of a renewable push is turning back into fossil fuels in the return of shareholders.
Equinor, renamed Statoil in 2018, said Wednesday that he was planning to increase fossil fuel production and halve his renovation expenses, with the chief executive Anders opedal saying that this was aiming to “create shareholders for decades ongoing. “
According to its new objectives, the company plans to produce 2.2 million barrels of oil equivalent daily by 2030, 10 percent higher than previous expectations.
It lowered its target for renewable capacity to 10GW-12GW from a previous 12GW-16GW target. Investment in renewable and other low carbon technology between 2025 and 2027 will be shortened to $ 5 billion, from about $ 10 billion ago, excluding project funding.
“Equinor is well positioned for further growth and returns of competitive shareholders,” Opeedal said as the company released its results for 2024.
The group now waited for the flower of the strongest cash, which would be achieved “by grading the portfolio high, reducing the prospect of renewable renewal investments and low carbon solutions, and improving the cost throughout our organization” , he added.
Openal said the company’s general strategic direction had not changed and that it still aimed to reach “Net Zero” emissions by 2050.
“We continue to reduce emissions from our production and build profitable business in renewable solutions and low carbon solutions,” he said. “By adapting to the situation and market opportunities, we are determined to create the value of shareholders for the following decades.”
Equinor movement comes after diluted shell and BP plans to diversify away from fossil fuels under pressure from shareholders to continue providing the return of oil and gas levels.
Analysts expect BP to fall or scale its target for renewable capacity by 2030 in an investor day this month.
Vitol, the world’s largest independent energy dealer, said this week that the global oil demand would not fall at least in 2040, while US President Donald Trump pledged last month for “training, children, training” for utilize the country’s oil resources.
Equinor’s announcement comes after she said in October she was buying a nearly 10 percent of the shares in the world’s largest offshore developer.
This action will bring the equinator closer to its renewable objectives for less money than it would cost to develop capacity from scratch in itself.
On Wednesday, on Wednesday, the chief executive of Totalienergies Patrick Pouyanné said it was not “worth” to pursue offshore wind projects in the SH.BA for the next four years because they have “little chance of being authorized” because of Trump’s opposition.
Total placed a planned wind farm off the coast of New York and New Jersey waiting in November, but Pouyanné said the group would return to the project on a later date.
Despite this, the chief executive said that the total would still invest in renovations in the US and that he was expecting projects to be supported by US states, rather than the federal government would continue.
The comments came as a total reported net income of $ 18.3 billion for 2024, a 21 percent decrease from last year to the back of oil markets and a decrease in refining margins.
But the company said it will shorten its organic investment target by 2025 from $ 18BN to $ 17BN.
