Simon Jack
BBC commercial editor
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Managing Director Anders Opedal said that the transition to lower carbon energy moved more slowly than expected
The Norwegian energy giant Equinor half reduces investments in renewable energies over the next two years while increasing oil and gas production.
Managing Director Anders Opedal said that the transition to lower carbon energy moved more slowly than expected, the costs had increased and that customers were reluctant to engage in long -term contracts.
Opedal told the BBC that he was convinced that Rosebank – a new giant oil field in the North Sea – would go ahead, despite a recent court decision that consent was illegally attributed.
He also warned that gas prices could increase next winter, because European gas storage levels were lower than this era last year.
“We reduce our investments in renewable energies and low carbon solutions because we do not see the necessary profitability in the future,” said Opedal.
It will reduce investments in renewable energies to $ 5 billion in the next two years, compared to around $ 10 billion.
It will also lower an objective to spend half of its fixed asset budget for renewable energies and low carbon products by 2030.
On the other hand, Equinor will increase oil and gas production by 10% over the next two years.
Rosebank “not simple”
It is believed that the controversial rose bench oil field contained 500 million barrels of oil.
A Scottish court recently ruled that consent had been illegally granted because the request did not take into account the complete environmental impact of the project.
Many in the British government – including the EDRI Miliband Energy Secretary – oppose it.
Opedal admitted that it was a division problem but insisted that it was good for the British economy.
“This is an important project for us. It provides local jobs in Scotland, local jobs in the United Kingdom, we therefore think that this project goes ahead,” he said. “We believe that Western Europe and the United Kingdom should produce the oil and gas it uses instead of being dependent on other countries outside of Europe.”
Climate activists and the petroleum industry both won victory for the Supreme Court’s decision, because although consent was revoked, the court authorized preparatory work to continue on Rosebank while new consents are requested .
The government said it had “already consulted” on extracted oil and gas combustion emissions, and will incorporate the results of the consultation when revising environmental councils.
“Our priority is to provide an equitable, ordered and prosperous transition to the North Sea in accordance with our climate and legal obligations, which heads for our own energy future of energy security, lower invoices and good long -term jobs” , the “spokesman added.
Tessa Khan, from the Uplift environmental campaign group which, with Greenpeace, brought legal exams to stop the development of Rosebank, said that Equinor was getting ahead.
“I think it is in the interest of the industry to give the impression that it is a tick box exercise to get Rosebank on the line,” she said.
“There is a regulatory process that must be satisfied, and there are very strong arguments of public interest against the development of Rosebank, so we do not think that it will be a simple decision.”
She added that the new oil and gas fields will not abandon British bills or improve the energy safety of the United Kingdom, as renewable energies, because oil is drilled and sold for export.
“I think we must be honest as to whether oil and gas companies are partners in good faith in the energy transition and interested in reducing people’s energy bills. I think the answer is now very clear” no “” she said.
“Positive” Trump position
Equinor follows other energy companies in reducing investment in renewable energies. Shell and BP have both reduced their future plans.
Mr. Opedal seemed to welcome Donald Trump’s invitation to the industry to “Forer, Baby, Forest”, but said that energy prices, not the American president, would dictate exploration and future production .
“When I hear” Drill, Baby, Exercise “, I see this as a positive feeling for the oil and gas sector, but I think companies will still decide drilling programs according to price signals” declared Mr. Opedal.
“If prices drop, fewer wells will be drilled, if it increases, the more drilled.”
When asked how it was compatible with his goal of making Equinor Net Zero by 2050, he conceded that drilling more would now make things more difficult in recent years.
Opedal also warned that low gas storage levels in Europe, as it is released this winter could mean higher prices next year.
“Gas storage levels will be lower this spring, which means that Europe will have to fill in larger quantities of gas to keep it at the same level,” added Mr. Opedal. “The increase in underlying gas demand from China means more competition for energy that has the potential to increase prices.”
