Mar 5, 2020 - Energy & Climate
Why the gap between offshore wind and oil-and-gas might narrow over the 2020s
Add Axios as your preferred source to
see more of our stories on Google.
A Wood Mackenzie analyst note shows that the gap in global investment between offshore wind and offshore oil-and-gas is expected to narrow as the 2020s progress.
The intrigue: The brief report explores why investors should be interested in a sector in which projects typically offer lower returns than oil-and-gas projects.
- "[A]ny investment in the oil and gas sector is now subject to 'energy transition risk,' which encompasses falling demand for oil, the potential cost of the carbon intensity of assets, and more," the note states.
- "There’s also a real possibility that both upstream project returns and renewables project returns will evolve, taking into account changing cost of capital, government subsidies and technology development."
Go deeper: Why U.S. offshore wind is finally going big
