Equinor, a Norwegian energy giant, is making a significant shift in its investment strategy. The company is cutting its investment in renewable energy in half and increasing its focus on oil and gas production over the next two years.
This decision comes as the transition to greener energy has been slower and more expensive than anticipated. Equinor's CEO, Anders Opedal, cited a lack of profitability in the renewable energy sector as the primary reason for the change.
Equinor will reduce its investments in renewables to $5 billion over the next two years, down from $10 billion previously. The company will also abandon its target of spending half of its fixed assets budget on greener products by 2030.
Instead, Equinor will increase its oil and gas production by 10% over the next two years. The company believes that this move is necessary to meet the energy needs of Western Europe and the UK.
Equinor's decision has been met with mixed reactions. Some environmental groups have criticized the company for abandoning its commitment to renewable energy. Others have welcomed the move, arguing that it is necessary to ensure energy security in the region.
It remains to be seen how Equinor's new strategy will impact the company's long-term profitability and its environmental footprint.
6 Comments
Comandante
“It’s important to balance green ambitions with economic viability. Equinor’s new strategy may secure energy for millions.”
Mariposa
“Cutting renewables is the worst possible decision for our environment. Equinor is all talk and no real commitment.”
ZmeeLove
“A 10% increase in fossil production won’t solve our energy needs in a sustainable way. This decision is shortsighted.”
Muchacho
“Supporting a mix of energy sources is key. Equinor’s decision could actually pave the way for a more balanced energy portfolio in the long run.”
Marishka
“Equinor is choosing short-term profit over the long-term health of our environment. Disappointing!”
Bella Ciao
“Equinor’s strategy now is a glaring example of corporate shortsightedness. Increasing fossil fuels won’t pay for an uncertain future.”