Equinor
Statoil to Equinor - Transitioning for a Low-Carbon Future

Equinor, originally founded as Statoil in 1972 upon the discovery of substantial oil deposits on Norway's continental shelf, transitioned into a publicly traded company in 2001 with the Norwegian government retaining majority ownership. The company developed its expertise in the extraction of fossil fuels from challenging deepwater locations and emerged as a significant player in the global oil market. Recognizing the finite nature of the Norwegian oil fields and increasing concerns regarding climate change, Statoil initiated a strategic shift to transition to what they believed to be a low-carbon future. This involved a rebranding to Equinor in 2018 to reflect its broader energy focus. Equinor's strategy embraced both maintaining its oil business with reduced carbon emissions during extraction and sequestration and expanding its renewable energy portfolio.
Despite these efforts, Equinor faced substantial challenges. Many stakeholders viewed the hybrid model skeptically, contrasting the reliable and high-margin oil sector with the innovative but lower-margin renewables sector. Environmentalists and ESG investors doubted Equinor's commitment, and others highlighted the dissimilar business nature and the complexity of reconciling these within a single corporate structure. After the 2022 Russian invasion of Ukraine, Equinor’s hybrid strategy was scrutinized as the company increased natural gas production to support Europe’s energy security, earning record profits and raising questions about how the company would invest its windfall.