Equinor ASA EQNR, the Norwegian energy major, has issued a stark warning that it may cancel its flagship Empire Wind offshore project off the coast of New York unless a resolution is reached in the coming days to lift a month-long federal stop-work order.

The project, which has already drawn an investment of $2.7 billion, has been stalled since April 17, when U.S. Interior Secretary Doug Burgum, acting under the direction of President Donald Trump, ordered a halt to construction. The Trump administration cited concerns over potentially insufficient environmental review during the Biden era.

Mounting Costs Put Pressure on Equinor

Molly Morris, president of Equinor Renewables Americas, revealed in an interview that the company is currently burning through $50 million a week to maintain operations while the project remains idle.

“The situation is now unsustainable,” Morris said, highlighting the financial strain caused by uncertainty and delay. She noted that 11 vessels with 100 crew members are currently stationed offshore, awaiting clearance to resume work.

Environmental Review Under Scrutiny

The Interior Department’s decision to pause the project stems from a report by the National Oceanic and Atmospheric Administration (“NOAA”), which supports the Bureau of Ocean Energy Management in evaluating the effects of offshore wind projects on marine life and ecosystems.

However, Equinor is yet to review the NOAA report and remains unaware of the specific environmental concerns it may contain. NOAA and Interior Department officials have so far refused to comment on the matter.

Wind Energy Excluded From Fast-Tracking

While President Trump has called for expediting approvals of domestic energy projects, such as a Utah uranium mine that will receive an environmental review in just two weeks, offshore wind is explicitly excluded from that effort. On his first day back in office, Trump signed an executive order halting new leases and permissions for wind projects, describing them as ugly, expensive and harmful to wildlife.

A Major Blow to EQNR’s U.S. Offshore Wind Ambitions

Equinor’s Empire Wind is a key element of New York’s clean energy strategy and a symbol of broader U.S. ambitions to scale offshore wind. Its cancellation would deal a significant setback to the Biden-era clean energy transition, even as the Trump administration pivots toward fossil fuel and nuclear energy development.

With billions already invested and mounting daily losses, Equinor is pushing for urgent federal clarity. “We need answers — and soon,” Morris emphasized.

Story Continues

The coming days could determine whether one of the nation’s most high-profile renewable energy projects stays afloat or becomes the first major casualty of the Trump administration’s energy policy shift.

EQNR’s Zacks Rank & Key Picks

EQNR currently carries a Zacks Rank #3 (Hold).

Investors interested in the energy sector may look at some better-ranked stocks like Diversified Energy Company plc DEC, Comstock Resources, Inc. CRK and RPC Inc. RES, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Diversified Energy Company is an independent oil and natural gas producer in the United States. The company is primarily engaged in the production, transportation, and marketing of natural gas and natural gas liquids. The rising demand for natural gas as a cleaner-burning fuel and an uptick in the commodity’s prices are expected to positively impact DEC’s bottom line.

Comstock Resources is a leading independent natural gas producer with core operations in the Haynesville and Bossier shale formations of North Louisiana and East Texas. The company benefits from direct access to Gulf Coast markets and the LNG corridor. It maintains one of the industry’s lowest operating cost structures, and has significantly reduced its leverage. With over 1,600 high-return drilling locations offering more than 25 years of inventory, strong free cash flow supports Comstock’s growing financial strength.

RPC derives strong and stable revenues via diverse oilfield services, which include pressure pumping, coiled tubing and rental tools. The company is strongly committed to returning value to shareholders through consistent dividends and share buybacks. RPC’s current dividend yield is higher than that of the composite stocks belonging to the industry. Its new Tier IV dual-fuel fleet has boosted profits, with plans for further expansion of high-efficiency equipment to enhance operational capabilities.

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