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Equinor Plans $6.7B Annual Offshore Investment Until 2035
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Equinor ASA (EQNR - Free Report) , a Norwegian energy giant, announced a significant investment plan in oil and natural gas projects offshore Norway. The company intends to invest 60-70 billion Norwegian crowns (approximately $5.7-$6.7 billion) annually until 2035. This substantial commitment was made despite the global push for cleaner energy sources and the declining production from many of Norway's offshore fields.
Investment Focus on Norway's Offshore Potential
Anders Opedal, CEO of Equinor, revealed the investment plan at a recent press event, emphasizing the company's belief in strong, long-term demand for Norwegian oil. Equinor plans to continue its aggressive exploration strategy, drilling between 20 and 30 exploration wells each year over the next decade (compared to 26 drilled in 2012).
The company aims to maintain a production level of 1.2 million barrels of oil equivalent per day (boe/d) by 2035, slightly down from 1.4 million boe/d produced in 2023. This strategic move underscores Equinor's commitment to maximizing Norway's oil and gas resources despite the natural decline in some of its existing fields and the absence of new major developments planned for the 2030s.
Sustained Gas Supply to Europe
As Europe’s largest gas supplier and a significant oil producer, Norway plays a critical role in the continent's energy security. Currently, the country pumps around 4 million boe/d. Equinor's investment plan includes a commitment to deliver approximately 40 billion cubic meters of gas to Europe each year until 2035. This steady supply is crucial for Europe, especially in light of the ongoing energy transition and geopolitical tensions that have threatened the stability of global energy markets.
Industry-Wide Investment Surge
The announcement by Equinor coincides with a broader trend of increased investment in Norway's offshore oil and gas sector. Per a Reuters report citing data from the National Statistics Office, oil and gas investments offshore Norway by all companies are expected to reach a record high this year and remain at that level through 2025. This investment boom is attributed to ongoing field development activities and rising inflation, which have increased the cost of operations.
Kjetil Hove, Equinor’s head of domestic operations, highlighted the continued attractiveness of opportunities offshore Norway.
Navigating the Future of Energy
Equinor's long-term investment strategy reflects its confidence in the enduring demand for fossil fuels, even as the world shifts toward renewable energy. The company’s focus on sustaining oil and gas production in Norway aligns with its broader goal of balancing economic growth, energy security and environmental responsibility.
SM Energy is set to expand its oil-centered operations in the coming years with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for its shareholders.
The Zacks Consensus Estimate for SM’s 2024 EPS is pegged at $7.57. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
MPLX derives stable fee-based revenues from long-term contracts, with minimal exposure to commodity-price fluctuations. The partnership’s robust capital expenditure forecast for 2024, along with significant expansion initiatives, underscores its commitment to sustainable growth.
The Zacks Consensus Estimate for MPLX’s 2024 EPS is pegged at $4.21. The company has a Zacks Style Score of B for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry, with a focus on the subsea segment in offshore basins worldwide. FTI’s growing backlog ensures strong revenue visibility and supports margin improvements.
The Zacks Consensus Estimate for FTI’s 2024 EPS is pegged at $1.25. The company has a Zacks Style Score of B for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
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Equinor Plans $6.7B Annual Offshore Investment Until 2035
Equinor ASA (EQNR - Free Report) , a Norwegian energy giant, announced a significant investment plan in oil and natural gas projects offshore Norway. The company intends to invest 60-70 billion Norwegian crowns (approximately $5.7-$6.7 billion) annually until 2035. This substantial commitment was made despite the global push for cleaner energy sources and the declining production from many of Norway's offshore fields.
Investment Focus on Norway's Offshore Potential
Anders Opedal, CEO of Equinor, revealed the investment plan at a recent press event, emphasizing the company's belief in strong, long-term demand for Norwegian oil. Equinor plans to continue its aggressive exploration strategy, drilling between 20 and 30 exploration wells each year over the next decade (compared to 26 drilled in 2012).
The company aims to maintain a production level of 1.2 million barrels of oil equivalent per day (boe/d) by 2035, slightly down from 1.4 million boe/d produced in 2023. This strategic move underscores Equinor's commitment to maximizing Norway's oil and gas resources despite the natural decline in some of its existing fields and the absence of new major developments planned for the 2030s.
Sustained Gas Supply to Europe
As Europe’s largest gas supplier and a significant oil producer, Norway plays a critical role in the continent's energy security. Currently, the country pumps around 4 million boe/d. Equinor's investment plan includes a commitment to deliver approximately 40 billion cubic meters of gas to Europe each year until 2035. This steady supply is crucial for Europe, especially in light of the ongoing energy transition and geopolitical tensions that have threatened the stability of global energy markets.
Industry-Wide Investment Surge
The announcement by Equinor coincides with a broader trend of increased investment in Norway's offshore oil and gas sector. Per a Reuters report citing data from the National Statistics Office, oil and gas investments offshore Norway by all companies are expected to reach a record high this year and remain at that level through 2025. This investment boom is attributed to ongoing field development activities and rising inflation, which have increased the cost of operations.
Kjetil Hove, Equinor’s head of domestic operations, highlighted the continued attractiveness of opportunities offshore Norway.
Navigating the Future of Energy
Equinor's long-term investment strategy reflects its confidence in the enduring demand for fossil fuels, even as the world shifts toward renewable energy. The company’s focus on sustaining oil and gas production in Norway aligns with its broader goal of balancing economic growth, energy security and environmental responsibility.
Zacks Rank & Key Picks
Equinor currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like SM Energy Company (SM - Free Report) , MPLX LP (MPLX - Free Report) and TechnipFMC plc (FTI - Free Report) . While SM Energy currently sports a Zacks Rank #1 (Strong Buy), MPLX and TechnipFMC carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy is set to expand its oil-centered operations in the coming years with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for its shareholders.
The Zacks Consensus Estimate for SM’s 2024 EPS is pegged at $7.57. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
MPLX derives stable fee-based revenues from long-term contracts, with minimal exposure to commodity-price fluctuations. The partnership’s robust capital expenditure forecast for 2024, along with significant expansion initiatives, underscores its commitment to sustainable growth.
The Zacks Consensus Estimate for MPLX’s 2024 EPS is pegged at $4.21. The company has a Zacks Style Score of B for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry, with a focus on the subsea segment in offshore basins worldwide. FTI’s growing backlog ensures strong revenue visibility and supports margin improvements.
The Zacks Consensus Estimate for FTI’s 2024 EPS is pegged at $1.25. The company has a Zacks Style Score of B for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.