Posted on: June 17, 2020 Posted by: Darren Belgrave Comments: 0
Goldman Sachs Says Renewable Energy Spending Surpasses Oil and Gas In 2021

Energy Diversification

Oil and Gas will be integral to the global economy for decades to come. However, the need for alternative energy sources will also become a necessity as our global energy consumption will continue to increase. Diversified energy sources is not a necessity of tomorrow, but a reality of today. Renewable energy is produced from sources that do not deplete or can be replenished within a life time. Solar, wind, geothermal, and hydroelectric power are the most common examples. This is in contrast to non-renewable sources such as fossil fuels.

Investment

Global investment into renewable energy totaled 282.2 billion in 2019. The United States alone invested $55.5 billion in 2019 which was an increase of 28% from the year before.

Significant advancements within the renewable space have continued to improve the profitability of clean energy initiatives. Research by UNEP, Bloomberg New Energy Finance and the Frankfurt School-UNEP Collaborating Centre stated;

“Costs for electricity from new solar photovoltaic plants in the second half of 2019 were 83% lower than a decade earlier,” it added.”

Goldman Sachs analyst stated that as the transition from traditional fuels continues, investment into the renewable space will amount to $16 trillion through 2030.

Golman Sachs is an American multinational institution offering both banking, investment management, asset management, brokerage, securities underwriting and financial services.

Social sentiment trends positively towards renewable power. Just last week Telsa became the world’s most valuable automobile company.

Challenges

Technological advancements in oil and gas will reduce the cost of traditional energy. The technical risk associated with enhanced oil recovery (EOR) techniques are becoming more widely accepted. Cheaper carbon based fuel sources will place challenges on emerging energy technologies. These low oil price environments may place and an increased risk on renewable investments.

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