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We are excited to announce that as of February 1, Wood Mackenzie is a portfolio company of Veritas Capital, a leading investor at the intersection of technology and government. Our focus remains on providing you with the best intelligence, analytics, data and tools to ensure you are making the best data-driven business decisions with confidence.  

Read more in our news release here. 

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2022 Insight

Why the Majors need to consider margins in weighing up offshore wind

Will offshore wind deliver higher operating cash margins than oil and gas? A new metric – operating cash flow per GJe – provides the answers

  

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Erik Mielke

SVP Global Head of Corporate Research

Erik manages our corporate service, leading data-driven analysis and insight into strategies, performance and outlook.

Latest articles by Erik

View Erik Mielke's full profile

Analysis of renewables versus oil and gas investment conventionally focuses on relative risk and returns. But as electrons are set to replace hydrocarbon molecules in Big Energy production portfolios, which will offer the higher unit cash margin?

We compare offshore wind, a core renewables diversification strategy, with upstream oil and gas. Our benchmarking of the Majors’ new field upstream development portfolios with a group of renewable leaders’ offshore wind portfolios, concludes that offshore wind will deliver 25% higher unit operating cash margins than upstream oil and gas.

In our latest insight we cover:

  • The Majors are good at the volume game
  • Returns matter
  • Competition has driven down baseline returns from offshore wind
  • The Majors have a playbook to boost returns
  • Sacrificing stability of returns for higher average returns is the trade-of

Fill in the form at the top of the page for your complimentary insight which includes a full range of charts and data coving the above points.

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