Capital investments in renewables are set to outstrip oil and gas for the first time this year as countries scramble to source secure and affordable energy

Capital investments in renewables have also increased significantly and are set to reach $494 billion in 2022, outstripping upstream oil and gas at $446 billion for the year, according to Rystad Energy research. This is the first time that investment in renewables is set to be higher than for oil and gas.

In addition, our research and analysis show more capital is being pumped into renewables than upstream oil and gas (including brownfield and greenfield but excluding exploration) for the first time.

“Capital investments in renewables are set to outstrip oil and gas for the first time this year as countries scramble to source secure and affordable energy. Investments into renewables are likely to increase further moving forward as renewable project payback times shorten to less than a year in some cases.”

says Michael Sarich, senior vice president, Rystad Energy

Alternative energy has become an synonym of security to investors now.

The rebranding of “green” energy to “secure” and “affordable” energy is far more enduring and important than those investment graphs. That will have a long-term effect on political policy.

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That is nothing compared to LNG shipping companies since the Biden administration started targeting pipelines for termination.

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Their feast today just makes alternative energy projects more appetizing tomorrow. Nobody is having fun at the natural gas circus except the clowns.

Germany has invested billions and billions of euros in wind and solar, but they are restarting coal plants and cutting forests for firewood to avoid blackouts and freezing in their homes this winter.

To date the only country that that has successfully moved to renewable energy is Iceland, which has unique geology. Iceland is basically one giant volcano which allows it to use geothermal energy for the vast majority of its needs for electricity and hot water 24/7 year round.

Wind and solar would require massive energy storage systems capable of a storing week of output in order eliminate the need for fossil fuels. Government subsidies may make them look attractive, but it will not change the basic physics.

Wind and solar are holding up their end of the bargin. Natural gas fumbled its ball and alternatives get blamed for not picking it up too?

Germany needs to invest more billions if they want alternative energy to do everything. It would be a smart investment.

Then build that storage. That’s a secure domestic asset. Every smart country is going to have it by the end of the century.

No kidding investments in renewables are increasing rapidly.

The government at force of gun and jail forces its taxpayers to subsidize such wasteful zentral-plans.

When the taxpayers object, at force of gun and jail it mandates “education” to tell the citizens how to vote. Mao Tse-Tung is jealous.

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Germany is messed up a long with the rest of the world economically. They will have to ration gas, clearly if they could offset that with renewables they wouldn’t have fired back up the coal plants.

What we are seeing imho is what happens when you transition to fast and then some bombshell happens like this stupid war now people will freeze or go hungry. The UN is saying the word (food insecurity) for millions incoming. That’s a nice word for starvation, the price of energy is unsustainable especially for the poor.

I am all about getting off oil in the future the pace needs to slow down and let it transition by market conditions not by government.

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Government shuts down investment spending on fossil fuels.
Government increases increases investment spending on select renewables.
Government releases press release touteing “Capital investments in renewables are set to outstrip oil and gas for the first time . . .”

Deer thinks headlights are something natural. Oh pretty. “Must be a good thing.”

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You say with no evidence of fact.

Biden targeted the Keystone Pipeline during the campaign. He terminated it on his first day in office.

“The Permit is hereby revoked,” Biden’s executive order says. “Leaving the Keystone XL pipeline permit in place would not be consistent with my Administration’s economic and climate imperatives.”
Keystone XL pipeline halted as Biden revokes permit | AP News

Biden explicitly targeted the Nord Stream 2 pipeline for termination in February.
https://twitter.com/ABC/status/1490792461979078662

Biden’s Secretary of State is claiming a tremendous opportunity since the attack on the pipeline.
https://twitter.com/aaronjmate/status/1576326018893492225

The message is clear to investors in oil and gas infrastructure: There is a high risk that the Biden administration will target your infrastructure for termination, and you will lose your investment one way or another.

When the government pays people to place solar panels on their rooftops at taxpayer expense, I can see why others would invest in building them. Now remove all taxpayer money from this equation and let’s relook at this in a more fair, capitalistic viewpoint.

Do you realize than building the storage and the associated transmission infrastructure would require an investment that is much larger than that for the wind turbines and solar panels themselves?

Currently the only viable system for storing weeks-worth of energy is pumped hydro. We would need to expand existing dams, reservoirs, and generating plants by a factor of ten or more. We would also have to build new transmission lines to get the power into and out of the storage facilities.

When renewables are only 20 or 30% of the total power generation, you can rely on existing gas turbines to come on and handle the peak loads. Coal and nuclear can handle the base load at night. Getting rid of fossil fuels and nuclear power means that energy storage becomes a huge issue.

Yes, the investment has been driven by government subsidies and government policies.

California and Germany have been leading the way. California will need a large increase in its electric infrastructure to handle the load from electric vehicles, but instead it is shutting down power plants at the same time it is banning gasoline-powered vehicles.

Will the rest of the world follow their lead?

Which load from electric vehicles are we discussing? :sunglasses: :tumbler_glass:

Yes, there is a pants-load of problems with Biden’s energy policies.

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+1
The fact that the government now spends more in an area
than the free market does
is not necessarily a good thing.
.
.
.
.
What if (and this is obviously ridiculous. I am just trying to illustrate a point). . .
Free market: “We want food and housing”
Government: “We want money to go to churches.”

Headline: “Lots o’ Money Sent to Churches Proves that Sending Money to Churches is a Good Thing. Let’s all celebrate!”

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What use does a fair capitalistic viewpoint have in energy?

All feel goody and virtuous, but anyone with half a brain knows nuclear energy is superior in every way.

We could’ve had a world full of thorium reactors by now. Small modular reactors in every yard. :person_shrugging:

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Everyone realizes that. And investors still find alternatives attractive enough to pivot their money. Infrastructure projects are not the insurmountable political challenges they used to be. Storage and transmission are needed, and they will be built.