2025 Autumn Conference: Reflections from our CEO

When I reflect on the past five years there are three key perspectives I keep returning to:

• First, the speed of the energy transition.

• Second, the maturity of technologies and energy markets.

• Third, Europe’s competitiveness.

Let me elaborate.

Perspective number 1: There is a clear urgency to reduce emissions to reduce climate change. At the same time, even some of the world’s largest economies have put the brakes on for the energy transition train. Rising cost hit utility bills. Affordability is key. We must continue to reduce emissions. But in a way the economy can handle to avoid political backlash. We risk derailing the transition if it lacks public support.

My second perspective: The maturity of technologies versus the maturity of markets. Debate and policy related to the energy transition is often linked to specific technologies. Green hydrogen targets, offshore wind ambitions, solar build-out. But the challenges we face are not technical. The technologies actually work.

Thank you, Shaun!

The challenges are systemic: The costs are still too high, markets not mature enough. We need a more balanced, technology-neutral and efficient way to continue driving the transition forward.

This leads me to my third perspective: competitiveness. Europe needs to decarbonise and strengthen its competitiveness in a world of tariffs and barriers. The transition has to support Europe’s ability to compete.

These three perspectives all highlight the need for striking the right balance in the energy trilemma.

There are two ways we can contribute.

First - To safeguard energy security and affordability Europe still needs Norwegian oil and gas.

Second - To promote energy sustainability we need to continue investing in the transition with the right timing, where it gives the best combined impact on cost and emissions.

Let me talk about oil and gas to Europe first. It is encouraging to see Europe building so much renewable energy capacity. But looking through the lens of my three initial perspectives, another thing is also clear. Oil and gas are needed for longer than many expected a few years ago.

Europe needs a diverse energy mix. We can help strike the right balance. Energy from Norway will help Europe reduce its carbon footprint with lower cost, safeguarding competitiveness.

Energy from Norway will help stabilise an energy system with more intermittent energy generation from solar and other renewables. Energy from Norway will provide security to a continent where energy has been used as a weapon.

In short – energy from us is needed to manage a balanced energy transition.

Our role is not wishful thinking. We do this today. And our contribution has become more important in recent years. 

Let me take you on a trip around Europe to illustrate my point. Let us start on the other side of the North Sea in the UK. Norwegian gas has helped replace coal, reducing Britain’s carbon footprint. 

Now: We build the world’s first gas power plant with Carbon Capture and Storage. We build the world’s largest offshore wind farm. We continue to produce oil and gas.

In Poland, we are growing our presence as a “broad energy company”. Developing battery parks and onshore and offshore renewables. We trade power, supply gas through Baltic pipe and oil from Johan Sverdrup. All this helps Poland reduce dependency on coal and their big neighbour.

In Germany, we deliver around 35% of the gas demand. Important energy, but also important material for German industry. The ten-year contract we signed with the largest chemicals producer in the world B.A.S.F. is a good example. 60% of the gas will be used as material in industrial processes, 40% for energy.

Finally, Czechia. The last country on our gas map – for now. On Friday, I signed a contract with Pražská plynárenská to deliver gas for ten years. Last in a string of long-term contracts demonstrating that Europe needs and wants our gas while transitioning.

This is the energy transition playing out and we play a key role.

The energy transition is not a straight line. The pace will go up and down in different markets and economies. We need to be pragmatic, to find a realistic way forward. To create a balanced energy mix, oil and gas are not enough. We need to get renewables and low carbon solutions at scale into the energy system. 

We have identified three technologies where we can help scale up and bring something new to the world. Transportation and storage of CO2, blue hydrogen and floating offshore wind. 

We still believe in these technologies. But we were too optimistic about how fast they would break through. But we are not giving up. We continue to push forward to shape policies, mature markets and reduce cost for these technologies.

I am still convinced they will play a crucial role. But I am more uncertain about when.

So – what is needed to make a balanced energy transition happen? Two things: One - preparing the Norwegian Continental Shelf for the next chapter. We aim to maintain production in Norway at 2020 level until 2035. 

This might sound like “business as usual”. But this is anything but “business as usual”. Fighting decline on a mature shelf calls for one of the largest industrial plans Norway has ever seen - in my mind.

We know there is a lot of energy still in the ground on the NCS. 70% of our production in 2035 will come from future wells and new projects. We plan to invest around 60 billion kroner every year for ten years. Drilling 250 exploration wells. Developing 75 subsea fields. More than 600 production wells. This is the next chapter in the history of the Norwegian Continental Shelf.

Thank you, Siv. You and your colleagues will be busy!

We will still explore for elephants. But we cannot plan for finding new Sverdrups and Castbergs. Even without new elephants there is one thing I am sure about: The NCS will continue to be the backbone of this company.

My second point: We need stable framework conditions. The stop work order on the fully permitted Empire wind project in the US was described as unprecedented. But I see similar developments in many countries. 

This Thursday, Stortinget will have a hearing where electrification at Melkøya will come up – again. The second time this year, even though the project was approved and started two years ago.

Don’t get me wrong; Our industry in Norway is built on open debate and due democratic process. But it takes one election cycle to mature a project. Another to build it. And then it will produce for three to five cycles. We want to build industry, infrastructure and local communities. To do that, we need predictability.

Norway can continue to be Europe’s trusted energy partner. We need to show we deserve Europe’s trust.

Clear message from Thomas!

Norway can continue to be Europe’s trusted energy partner. We need to show we deserve Europe’s trust.