Tag: Equinor

Equinor banks on £3.75 BILLION tax break while posting ‘outrageous’ profits

“The world is burning and the UK Government is helping the arsonists pay for the fuel”

Climate campaigners have reacted with outrage at the news that Norwegian oil giant Equinor has today announced pre-tax profits of £5.8 billion (US$7.5 billion) in JST THE LAST THREE MONTHS.

Campaigners said that with climate-induced fires sweeping Greece “the UK Government is helping the arsonists pay for the fuel” with a massive tax break for Equinor to develop a new oil field.

Equinor’s flagship project in the UK, the controversial Rosebank oil field, is in line to pocket a tax break of £3.75 billion from the UK Government to incentivise its development. This deliberate loophole in the Windfall Tax means that 91% of the cost of developing the 500 million barrel field will be covered by the public purse, despite Equinor’s massive profits and the fact that 80% of Rosebank’s oil will be exported.

Campaigners in Aberdeen yesterday delivered a giant ‘cheque’ to the Equinor offices to highlight the injustice of the tax break.

Last year, Equinor broke records with pre-tax yearly profits of £62 billion (US$74.9billion), benefiting from increased prices for oil and gas due to the war in Ukraine. Meanwhile, energy bills for consumers skyrocketed and millions were pushed into fuel poverty.

There has been widespread opposition to the Rosebank field, with public protests across the UK, politicians including SNP MPs Tommy Sheppard and Mhairi Black and the head of the UK Government’s own climate advisory committee, Lord Deben, speaking out against the project.

A decision on Rosebank is rumoured to be scheduled for after the summer recess, following delays due to concerns that the project would not meet net zero commitments under the North Sea Transition Deal.

Friends of the Earth Scotland’s oil and gas campaigner Freya Aitchison said: “These outrageous profits every quarter serve as a stark reminder that companies like Equinor have no intention of changing their ways.

“Fossil fuel giants are simply making too much money from upholding the climate-destroying status quo. Adding insult to injury is the massive tax break Equinor will receive should they go ahead with Rosebank, showing how the UK Government would rather hand out public money than say no to big polluters.

“Grant Shapps and the Department for Energy Security and Net Zero are blatantly ignoring the devastating impacts of climate breakdown, exemplified most recently in the terrifying wildfires in Greece.

“By cheerfully inviting oil companies to drill for yet more polluting fossil fuels, they are effectively denying the reality of the climate crisis. The world is burning and the UK Government is helping the arsonists pay for the fuel.

“The Scottish Government can no longer sit on the fence on this climate denial and must speak out against Rosebank and all other new fossil fuel projects. We need a just transition to clean, affordable energy now.”

BREAKING NEWS: British Gas parent company Centrica has just posted it’s highest ever profits – £969 million in first six months of this year. Shell, too, has just posted eye-watering profits.

No cost of living crisis for these companies …

Rosebank: Scottish Government fails to oppose controversial project as Equinor lobbies for more drilling

Climate campaigners have challenged the Scottish Government to speak out against the controversial Rosebank oil field as they revealed details of the lobbying operation by the Norwegian oil giant Equinor who are behind the project.

New data compiled by Friends of the Earth Scotland show that from the 2021 election until end of 2022,  Equinor has met 13 times with MSPs including five times with Scottish Government Ministers.[1] The lobbying register also shows that oil lobby group Offshore Energies UK, who represent Equinor, met with members of the Scottish Parliament at least 36 times over the last two years.

With a UK Government decision on the massive Rosebank oil field drawing closer, Humza Yousaf once again refused to oppose the project when questioned by journalists at the All Energy Conference in Glasgow yesterday. Equinor also faced protests in Norway, Aberdeen and London to coincide with its AGM.

Prior to announcing its formal application to develop the Rosebank field in August 2022 Equinor pursued meetings with 8 MSPs in the North East and Shetland to convince MSPs to back the project, the data shows.

Oil extraction from Rosebank was also discussed at the 2022 Cross Party Group on Oil and Gas, chaired by oil lobby group Offshore Energies UK, and attended by six MSPs. The group lists amongst its aims: “to encourage greater recognition of the importance of the oil and gas industry to Scotland”. [2]

The Scottish Government has repeatedly failed to officially state their opposition to Equinor’s plans to develop the 500 million barrels of oil in Rosebank, despite Nicola Sturgeon speaking out against the much smaller Cambo oil field in 2021. None of the MSPs lobbied have called for the project to be stopped or signed the motion of opposition lodged by Monica Lennon MSP. [3]

Equinor is 67% owned by the Norwegian state and posted £9.5billion pre-tax profits for first 3 months of 2023, in addition to the £62billion in profits before tax for 2022. Despite their claims to be a ‘broad energy company’ more than 99 percent of Equinor’s energy production comes from fossil fuels.

Friends of the Earth Scotland’s campaigner Freya Aitchison said: “This research highlights the insidious power that Equinor and other fossil fuel companies have over decision making processes in Scotland.

“The scale and reach of the Equinor lobbying operation designed to influence the Scottish Government should be extremely alarming to anyone who takes the climate crisis seriously.

“For decades, the fossil fuel industry has denied and delayed the need for real climate action, and it is clear that it has significant means to continue doing so. Companies like Equinor have too much vested interest in continuing business as usual and cannot be trusted to play a meaningful part in a transition away from fossil fuels.

“99% of Equinor’s output is fossil fuels and the company is planning for the expansion of oil and gas drilling across the world, with the Rosebank project as well as others in Canada, Argentina and Norway. We know that in order to stay within agreed climate limits we can have no new investments in fossil fuel infrastructure, yet Equinor is deliberately ignoring the science and trying to persuade politicians to let it continue profiting from new extraction.

“There can be no place for the fossil fuel industry in decision-making around climate change – just as tobacco companies were banned from public health decision-making spaces, fossil fuel companies such as Equinor need to be denied access to power and influence in order for real change to happen.”

“To avoid catastrophic climate breakdown, and do our fair share globally, we must phase out oil and gas in this decade. First Minister Humza Yousaf has the chance to chart a new path away from fossil fuels without the industry trying to call the shots. If his Government is serious about tackling the climate crisis and delivering a just transition, it must cut ties with the fossil fuel industry and ban them from lobbying.”

Equinor’s influence peddling is aided by the revolving door – whereby politicians and officials jump from public office into lucrative industry lobbying jobs – or vice versa. Equinor’s Vice President Political and Public Affairs Global, David Cairns, was formerly the British Ambassador to Sweden and the Foreign and Commonwealth Office’s Director for the Nordic Baltic Region. [4]

Cairns has had at least 8 lobby meetings with MSPs in 2022 and met with Cabinet Secretary for Finance and the Economy, Kate Forbes, during COP26 in November 2021. Every single meeting Cairns has had on behalf of Equinor gives the same description of purpose in the Lobbying Register – demonstrating the limitations of lobbying transparency rules. The meetings discussed Equinor’s “broad energy portfolio of oil & gas, offshore wind and low carbon activities” and “Future opportunities for engagement with MSPs in the Scottish Parliament”.

Environmental campaigners welcome Scottish Government statement on oil and gas licences

Environmental campaigners have welcomed yesterday’s statement from Minister for Environment and Land Reform Mairi McAllan that the Scottish Government “does not agree with the UK Government issuing new oil and gas licences”.

This came in response to a parliamentary question from Mark Ruskell MSP about whether the Rosebank oil field, and new licensing, should be allowed to go ahead, given the First Minister’s previous opposition to the Cambo oil field last year.

Ms McAllan said that the licensing of new oil and gas extraction is not the answer to either the cost of energy crisis or the climate crisis. The UK Government recently opened a licensing round which could issue over 100 licences for fossil fuel companies to explore the UK Continental Shelf for new oil and gas fields.

The Rosebank oil field already has a licence, and would be three times the size of Cambo. Equinor, the Norwegian oil company that wants to develop Rosebank, is currently awaiting approval from the UK Government’s Department for Business, Energy and Industrial Strategy on its environmental statement before the project can begin development.

Rosebank would not extract its first oil until late 2026, and the majority of the oil extracted would be exported and sold on the open market, doing little for the UK’s energy security.

Campaigners welcomed Ms McAllan’s statement as a strengthening of the Scottish Government’s position on new oil and gas.

Friends of the Earth Scotland’s oil and gas campaigner Freya Aitchison said: “Mairi McAllan is completely right to say that new oil and gas extraction isn’t the answer to the cost of living crisis or the climate crisis.

“Millions of families are being pushed into fuel poverty by greedy oil companies for short-term profits. Meanwhile climate science is clear that there can be no new oil and gas licensing if we are to avoid truly catastrophic warming.

“This is the furthest the Scottish Government has gone to date in its opposition to new licensing, and Ministers must now pressure the UK Government to abandon its climate-wrecking oil expansion plans, starting by rejecting the plans to develop Rosebank. The Scottish Government must cement this position in the forthcoming Energy Strategy, putting an end date on fossil fuels and setting out the framework for a managed and just phase out of oil and gas within this decade.

“The Scottish Government’s opposition to new oil and gas extraction will make Rosebank a more risky investment, so Equinor should really think again.

“If Rosebank were allowed to go ahead, it would produce the same amount of climate-wrecking pollution as the annual emissions of 28 low-income countries combined.

“Approving it would fly in the face of climate science, which is clear that allowing any new fossil fuel extraction will take us past globally agreed climate targets.”

‘Oily’ Roses expose toxic relationships around Rosebank oil field

Environmental campaigners have been highlighting companies and groups connected to Norwegian oil giant Equinor by delivering roses in order to expose their toxic relationships with the proposed Rosebank oil field.

Campaigners yesterday delivered bunches of ‘oil’ covered roses to locations in Glasgow and Edinburgh representing some form of financial or political influence over whether the Rosebank oil field goes ahead.

These included the Norwegian consulates in both cities; the UK Government building, Barclays bank and the First Minister’s residence Bute House in Edinburgh; and Glasgow City Chambers.

 + Equinor holds a 40% stake in the Rosebank field and is majority owned by the Norwegian state.
 + Barclays is one of Equinor’s corporate financiers providing them with $2.46 billion of backing since 2015.
 + The Strathclyde Pension Fund, which runs Glasgow City Council pensions investments, holds £9million in shares in Equinor.
 + Nicola Sturgeon has failed so far to explicitly oppose the  Rosebank field, despite objecting to the smaller Cambo development in late 2021.

Rosebank contains over 500 million barrels of oil, which if burned would produce the equivalent CO2 emissions of the 28 lowest-income countries combined. Ahead of the COP27 climate talks, the UN has warned that the world was on course for a catastrophic 2.8C of climate warming by the end of this century.

The UN report ‘The Closing Window’  demanded that emissions should fall 45% by 2030 if we are to stay within agreed climate limits.

Friends of the Earth Scotland’s Oil and Gas campaigner Freya Aitchison said: “Equinor is propped up by governments, investors and pension funds, but by drawing attention to these toxic relationships we can undermine their reputation and highlight the dangers posed by the vast Rosebank project.

“Today’s deliveries show that support for Equinor and Rosebank is all around us, and these links must be broken if this climate-wrecking development is to be stopped.

“Climate science is clear that the development of new oil and gas fields will take us even further past safe climate limits. Lending financial or political support for new fossil fuels is climate denial.

“Governments, banks and investors urgently need to redirect support away from the fossil fuel industry that is driving the death and destruction across the world and instead invest in ramping up affordable, reliable renewable energy.”

Separate analysis has shown that developing the Rosebank field will cost UK taxpayers over £100 million, due to a deliberate loophole in the UK Government’s windfall tax.

Equinor recently declared profits of £21 billion for the third quarter of 2022.