Why the Majors need to consider margins in weighing up offshore wind
As electrons are set to replace hydrocarbon molecules in Big Energy portfolios, which will offer the higher unit cash margin? Offshore wind’s stronger performance than the Majors’ new field upstream development portfolios shows that the financial prize in renewable power is more than simply long-term and steady cash flows. We introduce our new proprietary operating cash flow per GJe metric to analyse relative performance across new developments in E&P and offshore wind. With the Majors flush with deep pockets of cash at a time when huge offshore wind tender volumes will be awarded, we also discuss the strategic implications.