Big Oil Backs Offshore Wind: Equinor Stakes Nearly $1B on Orsted’s Future
The energy world was rattled this week as Equinor (EQNR), Norway’s oil and gas giant, declared its unwavering support for Orsted’s (DNK:ORSTED) massive $9.4 billion capital raise—at a moment when U.S. offshore wind faces mounting hurdles under President Donald Trump (Republican). With the U.S. Bureau of Ocean Energy Management halting work on key wind projects, including Orsted’s $1.5 billion Revolution Wind, this bold move makes waves for both global energy markets and the ongoing American fight for energy dominance. Equinor is set to throw almost $1 billion behind Orsted to shore up its 10% stake, signaling defiant faith in the world’s top offshore wind developer—even as traditional American energy values are under siege. This high-stakes moment fits right into the ‘America First’ agenda, as President Trump sharpens scrutiny on policies that have funneled billions into unreliable renewables, instead favoring U.S. oil, gas, and nuclear power.
Equinor’s action isn’t just symbolic. The Norwegian state-backed company (67% owned by the Kingdom of Norway) will participate in Orsted’s rights issue, seeking to keep its 10% holding intact and strategically positioning itself for board influence. Orsted, with Danish government support, must now convince investors its vision is viable in the face of the U.S. regulatory blitz and recent global market jitters. The capital raise is designed to improve Orsted’s capital structure and restore confidence, giving the company room to pursue new projects, especially in Europe, as American prospects chill.
Such a headline move comes after Orsted’s shares fell to record lows following “material adverse developments” in the U.S. wind market. According to recent reports, Norwegian energy company, Equinor, has pledged to support Orsted’s $9.4 billion rights issue as it navigates regulatory hurdles in the US. This is a high-stakes bet with potential ripple effects for both energy investors and policymakers grappling with the real costs and risks of rapid green transitions.
Equinor’s vote of confidence offers a lifeline—at a moment when America, under President Trump’s leadership, calls for a reality check on risky energy bets and renewed patriotism in energy security.
The coming weeks will reveal if this offshore wind powerhouse can weather the political and economic storms, or if Trump’s proven, common-sense energy push reshapes the global power map for years to come.
How Trump’s Tough Policies and Market Pressures Undermined Orsted’s U.S. Ambitions
What led Orsted to this pivotal crossroads? It’s impossible to overlook the rising headwinds offshore wind faces in Trump’s America. Since reclaiming the White House in 2024, President Donald Trump (Republican) made clear his skepticism of lavish subsidies for renewables—and his commitment to red, white, and blue energy security. The Bureau of Ocean Energy Management (BOEM) recently imposed a work-stop order on Orsted’s $1.5 billion Revolution Wind project—even though it was 80% complete. This wasn’t just regulatory foot-dragging; it reflected the administration’s view that offshore wind, heavily dependent on Chinese components and government handouts, is fraught with economic and national security risks.
Trump’s critics may howl, but a closer look reveals the real risks that taxpayers have endured for little pay-off. Orsted’s headaches are only the latest in a long chain of U.S. wind projects running aground on cost overruns, foreign dependencies, and shifting public sentiment. The BOEM’s actions align with campaign pledges to ensure U.S. energy stays secure and that taxpayer dollars aren’t wasted propping up unproven experiments. Prior to the Revolution Wind stoppage, BOEM halted Equinor’s Empire Wind 1 project off New York in April—showing that the crackdown isn’t just talk.
The result? Even foreign state-backed giants like Equinor and Orsted must now reconsider risk, as U.S. policy becomes less friendly to imported green schemes.
The Danish finance ministry’s show of support—by publicly joining Equinor in the capital raise—is a stark reminder of how state backers must now go all in to keep ambitious wind projects afloat as American conditions harden.
Both Orsted and Equinor (the latter sitting on Norway’s oil wealth) have called for new economic models in offshore wind, suggesting that industry consolidation and closer industrial and strategic collaboration will be required if these European climate projects are to survive. The vision? Leaning on deep pockets—and potentially, preferential EU market rules—to balance risks that no longer fit with American priorities under Trump’s administration.
Beyond board nominations and big checks, what’s at stake is the credibility of Europe’s flagship wind ambitions—and the wisdom of the American people in demanding energy independence. Trump’s platform has tapped into a powerful, patriotic demand for reliable and affordable power—not wishful thinking or bailout schemes for foreign-backed wind firms. The writing is on the wall for politicians and investors alike: Offshoring America’s power and wealth won’t cut it in today’s world.
From Obama-Era Green Dreams to Trump’s America First Energy, Offshore Wind’s Rocky Road
How did things reach this dramatic juncture? Offshore wind’s spectacular rise in Europe over the past decade was built on heavy government subsidies, sweetheart deals for foreign turbine makers, and soft regulations. Under the Obama and Biden administrations, similar tactics flooded into the U.S., with Democrats eager to paint a green future—regardless of local costs or community concerns. Yet, as costs soared and foreign supply chains showed their limits, public patience wore thin.
The setback for Orsted signals a broader reckoning for so-called climate leadership: When push comes to shove, national interests prevail. In the past, the offshore wind sector was buoyed by what many saw as ESG-driven financial engineering. Investors and governments chased headline “green” goals, while masking just how dependent these ventures were on China for parts and logistics—and on European taxpayers for risk mitigation. Now, Trump’s decisive stance is forcing a long-overdue reality check in the U.S.—and exposing deep cracks in the renewables market that have global ramifications.
Earlier this year, the U.S. canceled or paused more than a dozen proposed wind projects, with one major report showing nearly 60% of voters now oppose further offshore wind expansion due to reliability and cost concerns. Trump’s clarity has resonated: American oil and gas jobs are surging, inflation is cooling, and families no longer face surprise bills from failed “green” bets.
As the global energy chessboard resets, America’s working families have every reason to be optimistic: common-sense solutions and patriotic energy leadership are winning the day.
Looking ahead, all eyes are on whether Orsted can survive these turbulent waters. The European state giants—flush with old oil money—are doubling down on each other, hoping that scale and state support can outmaneuver shifting U.S. realities. But with President Trump defending the U.S. interest, offshore wind may see its greatest challenges yet on American shores.