Equinor Plans Massive North Sea Oil Expansion as Green Energy Targets Reduced

Equinor, the Norwegian state-backed energy company, has unveiled plans to drill 250 oil and gas exploration wells off Norway by 2035. The initiative, one of Norway’s largest ever industrial undertakings, aims to sustain oil output on the country’s ageing continental shelf, countering the natural decline of existing reserves.

The company, listed in Oslo and headquartered in Stavanger, expects to invest approximately 60 billion Norwegian crowns—equivalent to roughly £4.5 billion—annually throughout the next decade. Chief Executive Anders Opedal outlined the challenge of offsetting the fall in production from mature fields, stating that it will require unprecedented operational scale and capital commitment.

Equinor’s shift comes after a period of less optimistic expectations for low-carbon technology adoption. Opedal acknowledged that previous forecasts for breakthroughs in carbon capture and storage and offshore wind power proved overly confident. As a result, the company has halved its spending on renewables to five billion US dollars between now and 2027, excluding project finance, and reduced its target for clean power capacity. The revised ambition is to achieve between 10 and 12 gigawatts by 2030, down from an earlier goal of 12 to 16 gigawatts.

Despite scaling back renewable targets, Equinor’s output aims remain robust. The company targets production of 2.2 million barrels of oil a day by the end of the decade, an increase from its prior guidance of two million barrels. Efforts are not confined to Norwegian territory; Equinor is advancing development in the UK, notably at the Rosebank field, which is 80 miles northwest of Shetland and recognised as the nation’s largest untapped oil reserve.

Rosebank’s progress has faced legal challenges. Although Equinor secured government approval in 2023, this was later overturned by an Edinburgh court due to inadequate consideration of downstream emissions from burning the extracted hydrocarbons. The court has permitted development to continue while the company addresses the legal requirements to regain consent.

The market response has been cautious, with Equinor shares down 1.3 per cent at 231.8 Norwegian crowns in recent Oslo trading. The developments highlight the ongoing balancing act between fossil fuel security and the transition to cleaner alternatives, reflecting both the persistence of oil demand and the uncertain pace of technological change in the energy sector.