$211billion investment pending as offshore wind attracts oil, gas companies
As the global energy transition continues, offshore wind has been projected to become an increasingly attractive investment destination raking in nothing less than $211 billion by 2025.
A new report published by a global research body Wood Makenzie stated that the Global investments in offshore wind are expected to total $211 billion between 2020 and 2025, as the offshore wind market would become more attractive to oil and gas companies.
Like coal, the future of crude oil or fossil fuel has remained elusive as International oil companies are already cutting investment in oil exploration, wanting to be known as energy companies instead of oil and gas.
According to the report, the investments into the offshore wind would close the gap with offshore oil and gas investments as capital expenditure in offshore upstream is set to stabilize until 2022 and then drop through 2025.
As noted by a senior offshore wind analyst, Søren Lassen and principal upstream supply chain analyst at WoodMac, Mhairidh Evans, there could be “a point of convergence in regions in the 2020s where offshore wind investment will match oil and gas.”
WoodMac noted that visibility and certainty of investment outlooks beyond 2022 remain elusive, noting that the development would be compounded by short circle investment in the offshore oil and gas.
WoodMac’s analysts said a total of 82 percent of the forecast offshore capacity to 2025 has been awarded a support scheme or is in more advanced stages of development, adding that that the deployment tied to government incentives provides high certainty and transparency in investment outlooks.
The report added that another point for offshore wind is that the size of the projects is set to jump by 63 percent through 2025, and those large offshore work scope and packages attract Big Oil to the offshore wind market.