Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Oil firms investing in renewables ‘could benefit from more stable cash flow’, credit firm claims

Shell are planning to move into UK offshore wind.
A new offshore wind energy monitoring system to improve the integrity of wind turbine towers.

Oil and gas majors who invest in the renewable energy sector “could benefit” from more stable cash flows, according to a credit rating agency.

Fitch Ratings claims in a new report that firms are looking to invest in offshore wind, which could have strong “synergies” with the oil and gas sector.

It added that investment would lead to “increased business diversification” for companies.

The report claims that investing in offshore wind farms “could be especially beneficial as it provides a material scope for synergies with majors’ hydrocarbon offshore production”.

It adds that “about 40% of the full lifetime costs of a standard offshore wind project have significant synergies with the offshore oil and gas sector, according to the International Energy Agency (IEA), particularly if wind and hydrocarbon assets are in close proximity.”

Fitch Ratings pointed to European firms such as Equinor and Total, who have both invested in offshore wind.

It said that firms who have invested would expect “to realise synergies” between renewable energy assets and their oil and gas assets.

But the report also added that it does not expect renewables to become “a meaningful contributor” to an oil major’s balance sheet for another five years.

It said that while Equinor, Shell and Total are the most active in investing in clean energy, it does not expect them to diverge from traditional oil and gas investment in a wholesale manner.

Recommended for you

More from Energy Voice

Latest Posts