Equinor cuts renewable investments and boosts fossil fuel targets

In a major policy shift, the Norwegian state-backed oil company Equinor, previously known as Statoil until 2018, has announced significant cuts to its renewable energy investments. The company, which is also focused on developing one of the UK's largest untapped oilfields, plans to reduce its spending on renewable energy projects to $5 billion from now until 2027, excluding project financing. This decision marks a stark turn away from the company’s initial commitment to expand its clean energy initiatives. Moreover, Equinor has adjusted its projection for clean power capacity growth from a range of 12 to 16 gigawatts down to between 10 and 12 gigawatts by 2030. This revised target indicates a broader trend among global energy companies, with key players reconsidering their green power investments amid market fluctuations and geopolitical pressures. As these changes unfold, Equinor also aims to raise its fossil fuel production targets significantly. Equinor’s decision reflects a growing trend among oil and gas companies to prioritize fossil fuel extraction over renewable investments while claiming to remain committed to a transition toward greener energy. The implications of this shift may be far-reaching, impacting not only the company's operational strategies but also the broader energy landscape and climate commitments. As the world grapples with the energy transition, Equinor's scaling back of its renewable initiatives showcases a critical juncture for the industry, revealing the challenges and complexities in balancing immediate energy needs with long-term sustainability goals. The company’s focus on increasing oil production to 2.2 million barrels per day signals a major commitment to fossil fuels at a time when many are advocating for a shift to sustainable energy sources.