Equinor has announced it is halving its investment in renewable energy over the next two years while increasing oil and gas production.
Chief executive Anders Opedal told the BBC the transition to lower carbon energy was moving slower than expected, costs had increased and customers were reluctant to commit to long term contracts.
Opedal said he was confident that Rosebank - a giant new oil field in the North Sea - would go ahead, despite a recent court ruling that consent had been awarded unlawfully.
He also warned that gas prices could rise next winter as European gas storage levels were lower now than this time last year.
"We are scaling down our investments in renewables and low carbon solutions because we don't see the necessary profitability in the future," Opedal said.
It will cut investments in renewables to $5 billion (€4.8 billion) over the next two years, down from about $10 billion (€9.6 billion).
It will also drop a target to spend half of its fixed assets budget on renewables and low carbon products by 2030.
By contrast, Equinor will be increasing oil and gas production by 10% over the next two years.
Equinor to boost oil and gas production while reducing renewable investment
