Equinor Business Model Canvas

Equinor maintains a crucial partnership with government and regulatory bodies, especially in Norway, to secure essential licenses and permits for its operations. This collaboration ensures adherence to stringent environmental and safety regulations, which is paramount for sustainable energy development.

The Norwegian government's significant stake and support for the Northern Lights project, a key carbon capture and storage initiative, exemplifies the power of public-private partnerships in driving the energy transition. This partnership is instrumental in achieving ambitious climate goals.

Equinor's key partnerships are foundational to its operational success and strategic growth across its diverse energy portfolio. These alliances are crucial for sharing the immense capital and risk associated with large-scale energy projects, particularly in offshore wind and carbon capture initiatives.

In 2024, Equinor continued to strengthen its collaborative network, engaging with technology providers and research institutions to foster innovation in areas like enhanced oil recovery and carbon capture and storage (CCS). These partnerships are vital for developing advanced solutions that boost efficiency and reduce environmental impact.

The company also relies heavily on its supply chain and service providers, a network critical for everything from exploration to maintenance and major project execution. For instance, Equinor's 2024 capital expenditure plan of approximately $23 billion underscores the extensive supplier support required for its ambitious projects.

Equinor actively engages in developing and operating carbon capture and storage (CCS) solutions. This core activity encompasses the capture of CO2 from industrial emissions, its transportation, and its permanent geological storage. A prime example is the Northern Lights project in Norway, a joint venture where Equinor is a key partner, aiming to receive and store CO2 starting in 2025.

These CCS initiatives are vital for decarbonizing sectors that are difficult to abate, such as cement and chemical production. Beyond Northern Lights, Equinor is also involved in CCS projects in the UK, demonstrating a commitment to building the necessary infrastructure for widespread CO2 sequestration.

Equinor's key activities encompass the full lifecycle of oil and gas, from exploration to production, alongside a growing emphasis on renewable energy development and carbon capture. They are actively expanding their oil and gas output, targeting over 10% growth between 2024 and 2027, while simultaneously investing in offshore wind, solar, and CCS projects like Northern Lights. This dual strategy aims to secure current energy needs while transitioning to a lower-carbon future.

The company's trading and marketing segment is crucial for managing logistics and ensuring energy security, particularly for Europe. This involves optimizing supply chains and securing long-term sales agreements, as demonstrated by their USD 4.6 billion adjusted operating profit in this segment for 2023. Equinor's commitment to R&D, including digital solutions and new exploration techniques, underpins its operational efficiency and low-carbon transition efforts.

Equinor's expanding portfolio of renewable energy assets, notably its operational offshore wind farms and a robust project pipeline, is a cornerstone of its energy transition strategy. These assets are critical for generating clean power and establishing a strong market presence in renewables.

Key projects such as Dogger Bank, Empire Wind, and Bałtyk 2&3 are instrumental in building Equinor's renewable power generation capacity. For instance, Dogger Bank, the world's largest offshore wind farm, is expected to power millions of homes once fully operational.

Equinor has set an ambitious target to reach 10-12 GW of installed or under-development renewable capacity by 2030. This strategic goal underscores their commitment to significantly scaling up their renewable energy footprint in the coming years.

Equinor's extensive hydrocarbon reserves, particularly on the Norwegian continental shelf, are a primary resource, underpinning its current energy output and future production capacity. As of 2023, Equinor held approximately 5.7 billion barrels of oil equivalent in proved reserves, with a substantial portion located in Norway, ensuring a consistent supply for its operations.

The company's integrated infrastructure, encompassing offshore platforms, pipelines, and processing facilities, is critical for efficient extraction and transportation. Assets like the Johan Sverdrup field, which commenced production in 2019, highlight the scale and strategic importance of this network, contributing significantly to Norway's energy exports.

Proprietary technologies and specialized engineering expertise enable Equinor to operate effectively in demanding environments. Innovations like the Hywind Tampen floating offshore wind farm, which powers oil and gas platforms, demonstrate the company's advanced technological capabilities as of 2023.

Equinor's operational expertise spans both traditional oil and gas and emerging renewables, representing significant intellectual capital. This is further augmented by investments in carbon capture and storage (CCS) initiatives, such as the Northern Lights project, reinforcing its commitment to sustainable energy solutions.

The company's growing renewable energy portfolio, including operational offshore wind farms and a strong project pipeline, is central to its energy transition. Projects like Dogger Bank, the world's largest offshore wind farm, are key to expanding its clean power generation capacity.

Equinor aims to reach 10-12 GW of installed or under-development renewable capacity by 2030, a clear indicator of its strategic focus on scaling up its renewable energy footprint.

Equinor's human capital, comprising approximately 21,000 employees globally as of 2024, is a vital resource. This skilled workforce possesses deep expertise in areas ranging from offshore drilling to renewable energy development, critical for executing complex projects and driving innovation.

The company's substantial financial resources, bolstered by strong cash flow from oil and gas operations, are essential for funding its energy transition strategy and large-scale capital expenditures. This financial strength, evident in its Q1 2025 performance, ensures access to capital markets for both existing and new energy ventures.

Equinor prioritizes operational excellence and safety, ensuring reliable and cost-effective production. This focus minimizes risks and drives consistent performance, a core value for stakeholders.

In 2024, Equinor reported a Total Recordable Injury Frequency Rate (TRIFR) of 2.3 per million hours worked. This commitment to safety is a critical value proposition, safeguarding employees, partners, and the communities where Equinor operates.

Equinor provides reliable energy supply, crucial for global energy security. Its extensive experience in oil and gas production, particularly from the Norwegian Continental Shelf, ensures a consistent flow of these vital resources to meet demand.

Equinor is a key player in the energy transition, investing heavily in renewables like offshore wind and solar, alongside CCS technology. This commitment caters to growing demand for sustainable energy and aligns with climate goals.

Equinor offers a diversified energy portfolio, balancing traditional oil and gas with expanding renewable sources. This strategic mix enhances resilience and allows the company to serve a broad range of global energy needs.

Equinor is dedicated to creating shareholder value through strategic portfolio management and disciplined capital allocation. The company aims for profitable growth across its energy segments, ensuring sustainable returns for investors.

Equinor prioritizes strong investor relations and transparency, fostering confidence through consistent financial reporting and open dialogue. In 2024, the company continued its commitment to keeping shareholders informed about its strategic pivots, operational performance, and dividend policies.

This proactive approach, including regular investor calls and detailed updates, ensures stakeholders are well-equipped with the information needed to assess Equinor's value and future prospects, particularly concerning its energy transition strategy and capital allocation.

Equinor's customer relationships are multifaceted, encompassing strategic alliances with industrial clients, engagement with governments, and robust investor relations. These connections are vital for securing long-term supply agreements, navigating regulatory landscapes, and maintaining financial trust.

The company emphasizes collaborative partnerships with joint venture partners to share risks and optimize operations in complex energy projects. Furthermore, Equinor actively engages with local communities and environmental groups to ensure its social license to operate, demonstrating a commitment to responsible development and economic contribution.

Equinor leverages existing national and regional power grids to connect its renewable energy assets, such as offshore wind farms, to the market. This infrastructure is crucial for transmitting clean electricity generated from these sources to end-users, enabling the delivery of renewable power to homes and businesses.

In 2023, Equinor's renewable energy portfolio, including offshore wind, contributed significantly to its overall strategy. For instance, their investment in projects like the Empire Wind development in the US is designed to feed directly into the onshore grid, powering millions of homes.

Equinor utilizes a direct sales approach for industrial and utility clients, moving significant energy volumes like crude oil and natural gas. This often involves long-term contracts for stability, complemented by spot market sales. In 2023, Equinor's liquids production averaged 1.96 million barrels of oil equivalent per day, with a substantial portion going to these large consumers.

Governments and regulatory bodies are crucial stakeholders for Equinor, influencing operations through policy, licensing, and taxation. In 2024, Equinor continued to navigate complex regulatory landscapes across its operating regions, from Norway to the UK and the US. These entities shape the framework within which Equinor can explore, produce, and develop new energy sources, including renewables.

Equinor serves a diverse range of customers, from large industrial users requiring significant energy supplies to national and international energy companies engaging in strategic partnerships. Governments and regulatory bodies are also key stakeholders, shaping the operational landscape. Additionally, Equinor supplies electricity to grid operators and distributors, particularly from its growing renewable energy portfolio.

Investors and shareholders represent another crucial segment, focused on financial returns, transparency, and the company's commitment to sustainability. Equinor's ability to deliver consistent financial performance and its strategic investments in the energy transition are key drivers for this group.

Equinor’s operating and administrative expenses encompass general overheads, salaries and benefits for its extensive global workforce, and the costs associated with maintaining its worldwide offices and operational hubs. These are crucial for the smooth functioning of its vast energy operations.

In the first quarter of 2025, Equinor reported an increase in adjusted operating and administrative expenses. This rise was primarily attributed to increased maintenance activities across its operations, a common factor impacting costs in the energy sector during periods of planned upkeep.

Equinor's cost structure is dominated by exploration and production (E&P) activities, including substantial investments in new discoveries, development, and ongoing production. Operating expenses for drilling, maintenance, and infrastructure also represent a significant ongoing outlay. These fundamental costs are essential for their core hydrocarbon extraction business.

Equinor is positioning itself to earn revenue by offering carbon capture and storage (CCS) services, particularly through projects like Northern Lights. As these initiatives move towards operation, Equinor anticipates generating income by transporting and storing captured carbon dioxide for industrial clients. This marks a significant development in their business model, directly supporting the global shift towards lower-carbon energy solutions.

The Northern Lights project, a key component of Equinor's CCS strategy, has already secured commitments, with its initial storage capacity fully booked. This early success indicates strong market demand for these emerging services. Equinor’s involvement in CCS is a strategic move to diversify its revenue streams and capitalize on the growing need for decarbonization technologies within heavy industries.

Equinor's revenue streams are diverse, encompassing traditional energy sales, renewable energy generation, emerging carbon capture services, strategic asset divestments, and shareholder returns.

The company's core business remains the sale of oil and gas, significantly boosted by strong production and favorable market prices, as seen in their Q1 2025 performance. Alongside this, Equinor is actively expanding its renewable electricity sales, with a notable 51% increase in renewable power generation during 2024.

Looking ahead, Equinor is developing revenue from carbon capture and storage (CCS) services, with the Northern Lights project already securing full booking for its initial storage capacity. Strategic asset sales, such as the USD 3.5 billion divestment of its stake in the Peregrino field in Q2 2025, also provide substantial financial inflows.