Norwegian oil giant Equinor cuts green investment in half
Published On Feb 5, 2025, 7:05 PM
Norwegian energy company Equinor has announced a significant reduction in its investment in renewable energy, cutting it from about $10 billion to $5 billion over the next two years. The CEO, Anders Opedal, stated that the transition to lower carbon energy was slower than expected due to rising costs and client hesitance towards long-term contracts. Equinor plans to increase oil and gas production by 10% during this period and continues to push for development of the controversial Rosebank oil field in the North Sea, which could produce around 500 million barrels of oil despite recent legal challenges. The company’s shift reflects a broader trend seen in the energy sector towards prioritizing traditional fossil fuel projects amid ongoing market uncertainties.
Stock Forecasts
EQNR
Positive
Equinor's cut in renewable investments while ramping up oil and gas production indicates a bearish outlook on renewable energy profitability in the near term, alongside a potentially bullish stance on oil prices due to increased production and lower gas storage levels in Europe. Legal challenges surrounding the Rosebank project could also introduce volatility. Overall, the outlook for fossil fuel investment and prices seems positive for Equinor specifically.
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