Paper short abstract:

This paper explores the interplay between political decisions, national economic considerations, and commercial strategies related to the oil companies Statoil and Hydro’s investments in offshore wind power projects.

Paper long abstract:

In the last decades, the oil sector’s role in the green transition has been heavily debated. A recurrent argument in Norwegian discussions has been that much of the expertise present in the petroleum industry can be used to achieve a successful green transition. Both politicians and industry representatives have used the argument "develop, not dismantle" to defend continued investments in oil while highlighting the sector's potential to be a significant driving force toward a renewable energy system. This techno-optimism has been emblematic of political attitudes toward the oil industry’s role in Norway’s climate change adaptation. Shifting governments have pushed for electrification of offshore installations, carbon capture and storage solutions, and the development of offshore wind power.

In the oil sector, leading companies have followed up and developed offshore wind power technology as a response to politics, but also out of commercial and reputational self-interest. This development mirrors an international trend where major oil companies have increased their investments in renewables to transform themselves into energy firms.

With this backdrop as a starting point, this paper examines the evolving wind power initiatives in the Norwegian oil industry from around 2000 until today, with particular emphasis on Hydro and Statoil, which have been the companies at the forefront of these initiatives. The paper explores the interplay between political decisions, national economic considerations, and commercial strategies related to Statoil and Hydro’s wind power investments, and discusses the companies' motivations, and strategies as well as the challenges they encountered along the way.