Oil and gas are often painted as the dirtiest sector within the energy industry, but major companies have begun to invest in renewable technologies to clean up the economy. Despite the growth in renewables, big oil companies only spent 1% of their combined budget on green energy schemes in 2018.
In an analysis conducted by Rystad Energy, investments in solar and wind (RE) energy projects by the world’s larger oil majors, it is expected to exceed 18 billion USD by 2025. Taking a closer look at the numbers, it reveals that some $10 billion, or 55% of the amount, is expected to be invested by a single company – Equinor.
Renewables, especially wind and solar, are taking a role of increasing importance in the energy industry. Therefore, oil majors are progressively positioning themselves in the proclaimed energy transition. In a press release, Equinor announces a new climate roadmap aiming to ensure a competitive and resilient business model in the energy transition, fit for long term value creation and in line with the Paris Agreement.
Equinor aims to:
- Reduce net carbon intensity, from initial production to final consumption, of energy produced by at least 50% by 2050
- Grow renewable energy capacity tenfold by 2026, developing as a global offshore wind major
- Strengthen its industry-leading position on carbon-efficient production, aiming to reach carbon neutral global operations by 2030.
The analysis considers solar and wind investments that were announced prior to June 1st, 2020 and that can be pinpointed to specific projects. The analysis also states that if needed, due to the pandemic, a 20% CAPEX cut across overall investment portfolios could be achieved while easily avoiding any cuts to renewable projects.
We all must try to move away from fossil fuels because they are finite, whereas solar and wind are not. Roadmap, like Equinor, illustrates a pathway to be a shaper in the energy transition and the future of energy. It also appeals to consumers, producers, and governments to work together as a team on the necessary actions to combat climate change. Also, renewables, like solar, can be the catalyst for restoring the economy post-pandemic. In these difficult times, we must remember, “the only limit to our realization of tomorrow will be our doubts of today”, Franklin D. Roosevelt. It is the right time to realize that we all can make a difference. Switch to solar for a better future and invest in a better tomorrow for future generations. For any questions please contact Staten Solar!