Mar 5, 2020 - Energy & Environment

Why the gap between offshore wind and oil-and-gas might narrow over the 2020s

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Reproduced from Wood Mackenzie; Chart: Axios Visuals

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

Go deeper

Trump to buy oil for nation’s strategic reserves

President Trump. Photo: The Washington Post / Contributor

President Trump will direct the Energy Department to buy oil for the nation’s strategic stockpile to boost prices and help the oil industry reeling after the market’s historic collapse this week.

The big picture: America’s Strategic Petroleum Reserve was created in the 1970s to ensure the U.S. has oil in case of an emergency. Today, Trump is buying oil for the reserve because of an emergency.

The coming shale patch pain for U.S. oil companies

Reproduced from Wood Mackenzie; Chart: Axios Visuals

The consultancy Wood Mackenzie has tallied how much U.S. oil producers are cutting back spending as the industry moves to crisis footing.

The big picture: What's already announced — from both independent producers and global giants like Chevron and BP — is eye-popping.

10 ways coronavirus is changing energy and climate change

Illustration: Aïda Amer/Axios

The novel coronavirus, upending our world as we know it, is also changing how we consume energy and address climate change.

Driving the news: The various impacts are occurring both now and into the future. Most changes don’t bode well for acting on climate change and transitioning to cleaner energy.