Page 12 - Malaysia Marine & Offshore Industries Directory 2020/2021
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                 MALAYSIA MARINE & OFFSHORE INDUSTRIES DIRECTORY 2020/2021 EDITORIAL
 There is still much uncertainty in the months ahead. But analysts expect to see signs of recovery by the end of 2020. In its June 2020 Oil Market Report, the International Energy Agency (IEA) said: “So far, initiatives in the form of the OPEC+ agreement and the meeting of G20 energy ministers have made a major contribution to restoring stability to the market. If recent trends in production are maintained and demand does recover, the market will be on a more stable footing by the end of the second half.”
As all of this is transpiring, calls for renewable energy have ramped up, with environmentalists urging governments and industries around the world to wean themselves off petroleum. According to them, this is the best time to establish new norms by adopting safer and sustainable green energy alternatives to oil, such as wind, solar and hydrogen.
In a report by investment bank and financial services company Goldman Sachs, global investment in renewable energy is set to surpass oil and gas for the first time ever in 2021. The report, entitled Carbonomics, said: “Clean tech has the potential to drive between USD1 trillion and USD2 trillion of green infrastructure investments a year and create 15-20 million jobs in the energy industry worldwide by 2030, mostly through public-private partnership.”
Despite the oil and gas industry incorporating more green technologies and approaches over the years, it has been under constant pressure to keep reducing greenhouse gas emissions. This is expected to continue, even more so post-COVID-19 after the beating the industry took with the global lockdowns.
The most popular green investment option for traditional oil and gas companies is offshore wind energy. Analysts at research and consultancy group Wood Mackenzie say offshore wind is expected to attract more than US$211 billion between 2020 and 2025. This technology is nothing new. In fact, it has been around since 1991.
The reason why offshore wind is the green investment of choice is clear. It is clean, renewable and abundant. It is also more stable than solar and onshore wind, and could produce up to twice as much energy as onshore wind.
Europe currently leads in offshore wind energy due to a combination of factors – its scarce land, its strong winds and its population that is located near shallow waters. However, global quality assurance and risk management company DNV GL in its Offshore Wind: The Power to Progress report said that huge offshore wind potential exists around the world. It further predicts that wind, both onshore and offshore, is set to power 30% of global electricity production by 2050.
Perhaps no other industry is as volatile as the oil and gas industry. For the investors who are reeling from the pandemic-induced oil crash, offshore wind may be the answer. The return on investment may be low, but so is the risk. Despite being complex and costly affairs, offshore wind could be well worth its price.
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