Norway's Equinor pledges 50% emissions cut by 2030, records Q4 output surge

Norway's state-controlled Equinor said Feb. 9 it aimed to cut emissions from the assets it operates by 50% by 2030 as it reported a surge in both its oil and gas output in home waters.

The pledge came as Equinor, the largest producer of oil and gas in the North Sea, said it had increased its Norwegian oil output by 6% year on year to 656,000 b/d in the fourth quarter of 2021, reflecting increases from the giant Johan Sverdrup field. Its Norwegian gas output surged 17% to 813,000 b/d of oil equivalent over the same period.

Globally, Equinor increased its oil and gas production by 5% year on year in the fourth quarter to 2.01 million boe/d, with the increases at home offset by reductions in both its 'international' and US-focused upstream divisions.

It said its overall group production would rise by 2% this year, with a maintenance impact across the global business of 40,000 boe/d on average.

The new emissions commitment echoes a pledge by BP on Feb. 8 to curb emissions from its operations by 50% by 2030, on a path to net-zero emissions by 2050. Equinor added that 90% of its pledged 2030 cut would be on an absolute basis, rather than through the use of offsetting mechanisms such as forestation.

Equinor already boasts some of the lowest emissions in the industry thanks to upgrades to enable offshore platforms and facilities to source power from the country's renewables-based electricity grid. It said it had reduced emissions from the assets it operates globally from 8 kg/boe in 2020 to 7 kg/boe in 2021.

Equinor also reported a reserves replacement ratio of 113% for 2021, making for an average over the past three years of 61%.

Following record-high adjusted earnings of $15 billion for the fourth quarter, Equinor said it expects to increase its capital expenditure from $8.1 billion in 2021 to $10 billion in 2022 and 2023, followed by $12 billion in 2024 and 2025.

"We are capturing value from high prices for gas and liquids with excellent performance and increased production. This resulted in very strong adjusted earnings after tax for the quarter and the full year," CEO Anders Opedal said in a results statement.