A leading company in the energy transition
A leading company in the energy transition
Transforming Equinor to be a leader in the energy transition.
Our investment plans clearly demonstrate our commitment to transform.
By 2030, we expect to direct more than 50% of our gross investments towards renewables and low carbon solutions. By 2025, we expect this to be more than 30%. We aim to be a global offshore wind leader. With 12-16 gigawatts of installed renewables capacity by 2030, we are moving our existing ambition forward by five years. We also believe that we have what it takes to be the largest player in floating offshore wind.
Create value as an early mover and industry shaper
We aim to generate substantial cashflow from oil and gas over the next ten years. This cashflow will be used to add to our portfolio, drive the transition and create value for shareholders and society.
The Norwegian Continental Shelf (NCS) is expected to continue delivering resilience at low prices, short payback times, world-class break evens and production cost. Internationally, the oil and gas portfolio will contribute significantly to after-tax cashflow as high-value development projects come onstream from mid-2020s. Our growing offshore wind portfolio will also contribute to significant value creation.
Decarbonise and set a credible path to net zero by 2050
Climate change increasingly forms a basis for the decisions made by governments, societies, and companies.
We have already stated that we aim to be a net zero emissions company by 2050 and have committed to a clear plan to reduce our world-leading emissions from our operations.
We now aim to reduce our net carbon intensity by 20% in 2030 and by 40% in 2035. We will achieve this by continuing to reduce emissions from operations (already at 50% of the industry average), growing our renewable capacity, setting up value chains in CCS and hydrogen, and using high-quality carbon sinks.
Why we are changing
Climate change is the greatest challenge of our time. The world’s energy systems are in rapid transition to meet the challenge. The journey towards net zero creates new industry opportunities, and Equinor is ready to seize these opportunities.
As Equinor transforms, we must strike the right balance between generating cashflow to enable the transition, supporting our core, growing business in new energy areas and continuing as an attractive investment for our shareholders.
As energy systems transform, we will create value in new ways
Fast, structural changes can create new localised business models and offer new ways for consumers to access energy.
Oil and gas will stay in our long-term energy mix, but only the most robust upstream projects will be developed, and carbon considerations will continue to influence all our portfolio choices.
For renewables and low carbon solutions, close collaboration with customers, regulators and industry will be key to develop new markets and lay the foundation for future value creation.
Focusing on our core strengths, we will carefully select the right markets in which to develop and grow our business.
Net zero creates new industry opportunities
Climate change and the energy transition have quickly become mainstream concerns for governments, societies and investors.
European energy companies are expected to reach net zero by 2050, and they are judged by the actions they are taking today to reach that long-term ambition.
The demand for oil and gas is expected to decline in the long term, particularly in OECD (Organisation of Economic Co-operation and Development) countries, as other industries also pursue net zero ambitions and seek to reduce emissions from the life cycle of their products and services.
Therefore, functioning markets for low carbon solutions will emerge and new opportunities will arise for developers of these solutions.
As policy and regulations shape energy markets, the social licence to operate and the ability to run a profitable business will be closely tied to how companies act on their net zero ambitions.
Market dynamics set margins under pressure
Worldwide energy demand is expected to grow in the short to medium term. However, an abundance of energy from competing sources could lead to a decline in long term energy prices, exposing the industry to new competition and increasing the pressure on margins.
The energy landscape is transforming, with innovative technologies, new customers, new competitors, and new ways of creating value. A margin mindset will be important to stay competitive.
Technology excellence and innovation define winners
As the magnitude and speed of change intensifies, technology, digital and innovation will be key enablers.
New ways of working will evolve. We will continue to build on our existing competence and experience, and develop capabilities in new areas. A culture of innovation, learning and empowerment is needed to stay competitive. Companies that acknowledge and embrace the speed and impact of the change can create a competitive edge.
How we will get there - together
With a highly skilled workforce, our values and a long history of technology and innovation, Equinor is in a unique position to become a leading company in the energy transition.
Everything we do starts with safe and secure operations. Each of us is responsible for safety as we carry out our daily work. We will continue to improve our safety performance. Taking care of people, the environment and operations is at the core of our license to operate. As a company we must be open about our improvement potential and share learning to further strengthen Equinor.
We are open, collaborative, courageous and caring. Our values are at the core of who we are, how we relate to each other and how we run our business. As always, how we deliver is just as important as what we deliver.
We are now set up to deliver on our strategy. We have the competence, the technical skills and the industrial muscle to make a difference, and we will develop the capabilities we need to accelerate our transformation.
Developing our business, we must continue to build a diverse and inclusive Equinor. As we enter new markets, we will need to attract people from a variety of backgrounds and be an attractive employer for a diverse workforce.
Strong partnerships with our suppliers and peers, with the industry, regulators and society has been vital for our development in the past and will be at the core of shaping a profitable business for the future.
Building on collaboration inside and outside Equinor will be key to our success.