Oil and gas will continue to be the foundation of our value creation while we develop renewables, low carbon energy production and CO2 transport and storage solutions. We’re delivering the energy needed today, while developing the energy solutions of tomorrow.
2023 was marked by energy markets becoming more complex and less predictable. Against the backdrop of geopolitical instability, supply chain bottlenecks and inflation, energy companies face difficult trade-offs in delivering reliable, affordable and sustainable energy.
Safety is our number one priority. Over the years, our safety performance has seen a positive trend. In 2023, the serious incident frequency per million hours worked (SIF) was 0.4. The number of serious incidents were measured at the lowest level so far. Tragically, however, we had a fatality on a contracted tanker in Malaysia. We also recorded two incidents with major accident potential. This is a stark reminder of the importance of our continuous improvement effort to ensure that all our people return safely home from work. To safeguard our people and to meet increased geopolitical tensions and security risks, we have further reinforced the protection of assets and operations.
In 2023, we delivered strong financial results, with adjusted earnings* of USD 36 billion before tax. This is the second-best result in the history of the company, only beaten by the record results of 2022. The delivery of a solid global operational performance in 2023 resulted in a total liquids and gas production of around 2,100 mboe per day, a 2.1% growth from 2022. The strong cash flow and competitive capital distribution
in the year of USD 17 billion, including share buy backs, support our goal of creating shareholder value.
We continued to optimise the oil and gas portfolio,
both in Norway and internationally, delivering strong results. Equinor expects to deliver above 5% production growth for oil and gas from 2023 – 2026 and maintain production of around 2 million barrels per day in 2030.
The outlook for Norwegian continental shelf is extended, expecting around 1.2 million barrels a day in 2035. With major projects under development, the cash flow from the international portfolio is expected to increase by 50% by 2030. With a robust financial position, we are well positioned for growth and transition.
The year included several milestones for the company. The investment decisions on Raia and Rosebank, and the increased ownership in the Linnorm discovery, show how we continued to optimise our oil and gas portfolio. The acquisition of an interest in Bayou Bend and continued maturation of carbon capture and storage projects shows how we create new market opportunities in low carbon solutions. The long-term gas sales agreement with SEFE (Germany’s state-owned energy company) is one of the largest gas sales agreements that we have made, demonstrating the long-term attractiveness of natural gas to Europe. Finally, first power from Dogger Bank, the world’s biggest offshore wind farm, and the opening of the floating wind farm Hywind Tampen, demonstrate our capabilities to create high value growth in renewables.
For Equinor’s energy transition, 2023 was marked by a focus on capacity building. Last year, 20% of our investments were directed towards renewables and low carbon solutions. We are on track to reach our ambition to invest more than 50% in profitable renewables and low carbon solutions by 2030. We also strengthened our renewables portfolio, adding 8 GW to our renewables pipeline. Important milestones were the acquisitions of onshore renewables platforms BeGreen and Rio Energy. In the short term, we will see an increase in oil and gas production, but the company will alongside provide a broader energy offering.
Oil and gas will continue to be the foundation for our value creation, supplying the energy needed and contributing to energy security. We will continue to reduce emissions from the production of oil and gas and developing a pipeline of renewable and low carbon projects. With this we will increase both the production of low carbon energy and our capacity for CO2 transport and storage. We are delivering the energy needed today, while developing the energy solutions for tomorrow.
In 2023, we welcomed over 2,000 new employees to the company, renewing competence and replacing retirement. The energy transition requires skills and dedication, and we are proud of the strong efforts made across Equinor to deliver our results. We would also like to thank Equinor’s shareholders for their continued investments and commitment.