Equinor Asa · OSL:EQNR
Equinor Asa — Investor Presentation (November 2020)
25 slides from Equinor Asa's investor presentation, Nov 17, 2020
Slide 1: Energy Perspectives 2020
Energy Perspectives 2020 Long-term macro and market outlook Eirik Waerness, Senior vice president and Chief economist 17 November 2020 —~“ s- \ equinor
Slide 2: 10th Anniversary of Energy Perspectives
10% Anniversary of Energy Perspectives Major energy market changes during the last decade, and how EP11 compared to reality @ ps Global growth Energy demand and population have increased 11%, while the economy has grown 27% of © Shale revolution USA has become the world's largest producer, disruptin
Slide 3: 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1800 1810 1820
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1800 1810 1820 1830 1840 1850 1860 1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020
Slide 4: 1800 1810 1820 1830 1840 1850 1860 0 1880 1890 1900 1910 1920 1930
16 14 12 10 8 6 4 2 0 1800 1810 1820 1830 1840 1850 1860 1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020
Slide 5: 1,000 0 0 0 1990 1995 2000 2005 2010 2015 2020 1990 1995 2000
1,000 16 900 14 800 12 700 10 600 500 8 400 6 300 4 200 2 100 0 0 1990 1995 2000 2005 2010 2015 2020 1990 1995 2000 2005 2010 2015 2020
Slide 6: 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 90 1995 2000 2005 2010
16 4.0 14 3.5 12 3.0 10 2.5 8 2.0 6 1.5 4 1.0 2 0.5 0 0.0 1990 1995 2000 2005 2010 2015 2020 1990 1995 2000 2005 2010 2015 2020
Slide 7: 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
40 35 30 25 20 15 10 5 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
Slide 8: In which direction is the energy world moving?
In which direction is the energy world moving? Recent signposts show diverging paths, in terms of: + Economic growth + Energy efficiency + Technology development + Climate ambitions + Market regulations + Geopolitics .. and what will COVID-19 bring? * CO, emissions up * Energy demand up * US-China t
Slide 9: • • • • 2019 2020 2021 2022
600 • 105 500 • 100 400 300 95 • 200 • 90 100 0 85 2019 2020 2021 2022
Slide 10: Two scenarios
Two scenarios that capture where the world could be heading... Reform * Market and technology drive * Current policy momentum * Economic growth prioritised Rivalry * Geopolitical uncertainty and volatility * Focus on energy security * Trade tensions and isolationism
Slide 11: ... and one where the world needs to go
equinor ** .. and one where the world needs to go Rebalance 4 ) * Consistent with well below 2° target * Focus on all UN sustainable development goals + Industrialised countries focus more on well being * Emerging economies begin to close the income gap and leapfrog to a sustainable path
Slide 12: An unbalanced world
a. ay equinor An unbalanced world... 15% of the world’s population have 2/3 of the income and use more than 1/3 of the energy Energy l dotiedladadadad a ee pe eee Oadededededodd ee ee tad dededededoad rn an oie dededededoa ee eee wr ee eee ee GDP DOMED DEE Population Open 12 | Energy Perspectives 20
Slide 13: Rebalance — where the world needs to go
Rebalance — where the world needs to go We live on a finite planet. Resource consumption, population and energy demand cannot grow forever Economy Industrialised countries pay the full price for goods, covering negative externalities. Emerging countries benefit and invest in sustainable development
Slide 14: 2018 2022 2026 2030 2034 2038 2042 2046 2050 2018 2022 2026 2030 2034
200 40 180 30 160 140 20 120 10 100 80 0 2018 2022 2026 2030 2034 2038 2042 2046 2050 2018 2022 2026 2030 2034 2038 2042 2046 2050
Slide 15: 2000 2010 2020 2030 2040 050 2000 2010 2020 2030 2040 2050
6 60 5 50 4 40 3 30 2 20 1 10 0 0 2000 2010 2020 2030 2040 2050 2000 2010 2020 2030 2040 2050
Slide 16: Reb Ref Riv
20 60 3 50 2.5 16 40 2 12 30 1.5 8 20 1 4 10 0.5 0 0 0 Reb Ref Riv Reb Ref Riv Reb Ref Riv
Slide 17: Where is oil demand today?
Where is oil demand today? equinor * Transport is the key sector for oil demand today, with road demand making up 76% 6 Oil demand in 2018 Oil demand was 97mbd, with 55mbd going to transport Power & Heat Buildings Transport Nor-Energy Industry Oil demand in transport sector Light duty vehicles make
Slide 18: 2020 2025 2030 2035 0 2045 2050 2018 2050
125 100 100 80 75 60 50 40 25 20 0 0 2020 2025 2030 2035 2040 2045 2050 2018 2050
Slide 19: Where is gas demand today?
Where is gas demand today? equinor * 40% of gas demand is to the power and heat sector, though it has to compete with multiple other fuels A Gas demand in 2018 Gas demand was 3,900 bcm, with 1,600 bcm going to power & heat Non-Energy Transport Power & Heat Buildings Industry Power & Heat fuel mix Ga
Slide 20: 5,000 4,000 4,000 3,000 3,000 2,000 2,000 1,000 1,000 20 2025 2030 2035 2040
5,000 4,000 4,000 3,000 3,000 2,000 2,000 1,000 1,000 0 0 2020 2025 2030 2035 2040 2045 2050 2018 2050
Slide 21: 5000 4000 3000 2000 1000 2020 2025 2030 2035 2040 2045 2050 2020 2025
125 5000 100 4000 75 3000 50 2000 25 1000 0 0 2020 2025 2030 2035 2040 2045 2050 2020 2025 2030 2035 2040 2045 2050
Slide 22: 1900 1910 1920 1930 1940 1950 60 1970 1980 1990 2000 2010 2020 2030
20 18 16 14 12 10 8 6 4 2 0 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050
Slide 23: 1900 1910 1920 1930 1940 1950 60 1970 1980 1990 2000 2010 2020 2030
20 18 16 14 12 10 8 6 4 2 0 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050
Slide 24: Delivering a sustainable energy transition is a massive challenge
Delivering a sustainable energy transition is a massive challenge and unlike anything that has gone before The COVID-19 pandemic will have a lasting effect on energy demand Global demand for energy dependent goods, services and activities will continue to grow Rebalancing the global economy, consume
Slide 25: Energy Perspectives 2020
Energy Perspectives 2020 Eirik Waerness, Senior vice president and chief economist © Equinor ASA This presentation, including the contents and arrangement of the contents of each individual page or the ‘opyright to all material Including but not limited to, written material, photographs, drawings, i