Bud's Offshore Energy (BOE)

Equinor, which is 2/3 owned by the Norwegian government, has purchased a nearly 10% stake in offshore wind giant Orsted (50.1% Danish govt ownership).

With bp and Shell reducing their wind energy investments, Equinor’s Orsted acquisition is a contrarian move. Equinor is also the only major oil company that is still in the market for new US offshore wind leases.

While the Orsted acquisition does not appear to have been directed by the Norwegian government, the State’s 2/3 ownership of the company no doubt influences renewable energy targets and broader corporate strategy.

The initial market reaction to the Orsted purchase was negative (see chart below). On a day when most oil companies’ share prices rose in response to the jump in oil prices, Equinor shares opened sharply lower.