Equinor's Mixed Messages -- August 27, 2020

 This headline caught my eye ...

three oil majors that bet big on renewables -- oilprice. 

... and then I read the story. LOL. 

The three oil majors?

#1: Equinor
#2: Total SA
#3: ENI SpA

Except for Equinor, none interest me. How many of these decisions were based on "political correct" thinking by their governments. Business decisions? Hardly.

But then look at this:

It is instructive to note that a national oil company, and not an independent oil company, has the most ambitious green strategy of them all. Of the $18B that the supermajors plan to invest in clean energy over the next five years, more than half will come from Norwegian state-owned multinational energy company, Equinor ASA’s (NYSE:EQNR) coffers. In fact, if you remove Equinor from the equation, Big Oil’s renewable investments will actually decline over the next three years before even factoring in the industry-wide deep capex cuts due to the Covid-19 pandemic.

And then if that was not enough, this:

... environmentalists slam Norway's plan to expand Arctic oil drilling -- The Guardian.

Norway is planning to expand oil drilling in previously untouched areas of the Arctic, a move campaigners say threatens the fragile ecosystem and could spark a military standoff with Russia. 

A public consultation on the opening up of nine new Norwegian oilfields closed on Wednesday. 

The areas in question are much further north in the Arctic than the concessions the US president, Donald Trump, announced for Alaska this month. 

Experts say the area is regarded as risky both environmentally and in terms of profitability. They also say the decision risks antagonising other nations which are party to the 100-year-old Svalbard treaty, which regulates activity in the area concerned.  

Helge Ryggvik, an oil historian at the University of Oslo, says Norway’s move is a result of the oil industry struggling, a crisis which has worsened during the coronavirus pandemic.  

The Arctic has to be the absolutely difficult place to drill, both from a technical point of view, and politically, and yet Equinor says it will open up nine new Arctic oilfields.

This announcement speaks volumes about Equinor's strategy.

First, it suggests that Equinor is tied to oil for a long, long time -- it will be decades for Equinor to develop these fields.

Second, it suggests that Equinor is running out of "easier" plays (although they are drilling in the environment they know best).

And, finally, Equinor expects the price of oil to get back to $100/bbl some day. 

Oh, one more thing: remember, Equinor is a national oil company. The country relies on such income.

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Haircuts During The Pandemic

Since January, 2020, or thereabouts, when flights from China were banned due to Wuhan flu, I've not had a(n) haircut by a professional since then.

The only person who cuts my hair: Sophia.

I had another haircut yesterday: