Here’s how Big Oil might enter clean energy; plus, Egypt’s climate summit draws protests

By Trey Thoelcke Updated Sep 14, 10:05AM EDT · Published Sep 14, 4:04AM EDT

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Here’s how Big Oil might enter clean energy; plus, Egypt’s climate summit draws protests — © nielubieklonu / Getty Images

In today’s issue:

— Big oil smells profit in offshore wind

— Is Egypt the best place for a climate summit right now?

— General Motors takes aim at EV mass market with a $30,000 electric vehicle

— Clean energy job hiring rises above pre-pandemic levels

We wrote last month about how oil companies, flush with cash, were eyeing renewable energy companies in Europe as part of a way to diversify into clean energy without having to build it themselves. Now we’re getting some more insight into what they’re looking at, courtesy of Wood Mackenzie.

In a report, summarized by Oilprice.com, analyst Akif Chaudhry uses a new metric to show that the cash margins for offshore wind energy can exceed those of deep-water drilling, which are traditionally the highest margins for oil production.

The theory goes that big oil companies can use their existing offshore facilities to more cheaply transition to wind energy in a way that would hedge against declines in oil production and help Big Oil diversify into clean energy. Many climate activists are skeptical that Big Oil is serious about clean energy, but we have always maintained that when the costs of renewables get to the point where there is more profit in them, then even the biggest polluters will stand up and take notice.

As we wrote last month, with market values down on some of the biggest European renewable energy companies, and oil profits up, the typical mergers and acquisition cycle favors takeover bids sooner rather than later in the sector. True, there are many political considerations, especially in regulation-crazed Europe.

But as more offshore wind leases are offered by governments in Europe, and in the U.S., they are attracting more offers, even from big oil companies. At some point perhaps soon, consolidation in this industry will become a trending strategy.

More insights below . . . .

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.