Research on the Development of Norwegian Oil Companies in the Context of Carbon Dioxide Revenue

In light of the global warming crisis, the energy sector is experiencing a significant shift towards decarbonization, with carbon pricing mechanisms being pivotal. This study investigates the effects of carbon tax policies on the oil sector, particularly through the lens of Norway's pioneering implementation of a carbon tax in 1991, using Equinor ASA as a case study. The research emphasizes transition technologies within the oil industry, the carbon tax's influence, and corporate responses to climate policy. Employing a case study methodology, it quantitatively analyzes emissions data from Equinor's Sustainability Report (2016-2023) and International Energy Agency (IEA) statistics, while qualitatively evaluating policy documents and corporate strategies. Findings indicate that the carbon tax significantly affects the oil industry's operational models and strategic planning, with approximately 80% of emissions originating from offshore installations, primarily due to fuel combustion. Confronted with a carbon tax of NOK 1,500 (approximately $130) per ton of CO2, Equinor has adopted measures such as offshore electrification, renewable energy investments, and carbon capture and storage (CCS) technology, resulting in a 25.3% reduction in greenhouse gas emissions from 15.4 million tons in 2016 to 11.5 million tons in 2023.