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questions remain as to how offshore energy
production will fare in the period to 2040. OPEC
states that offshore crude oil production in the
medium-term should be back on the growing track
because the production is growing again in the main
production areas. Besides, to strong development in
new areas including Brazil and West Africa. They
predict that up to 2024, crude production in these
areas is expected to contribute nearly 25% of non-
OPEC liquids supply growth [7]. On the other side,
the IEA points out that due to the world’s main
offshore O&G fields being fully developed, the next
wave of offshore resources are generally in deeper
water and much further from shore. Conduct new
technological, logistical, and cost challenges [2].
As costs continue to fall for solar and wind
technologies renewable has become the lowest-cost
source of new power generation. Wind farms are now
the cheapest renewable energy source with a leveled
cost of electricity (LCOE) between 60-110 USD/MWh.
Nevertheless, offshore wind farms are still one of the
most expensive renewable energy production
methods, with an LCOE of between 120-135
USD/MWh [7]. All agencies expect that by 2030,
offshore wind power costs will approach those of
onshore wind power and conventional power
production ([7],[8]). IRENA expects that costs will
continue to decline up to 2030 for offshore wind
power technologies for another 55% [9]. This has
become competitive with conventional sources.
Significant advances in technology can surely only
increase and improve their capacity factor.
Agencies put strong attention that the location of
wind power plants needs to be carefully chosen, as
evidenced by the often low capacity factor of existing
wind power plants [9]. An important aspect to bear in
mind with renewable energy, especially in
conjunction with wind power is the fact, that the
natural conditions have a key impact on energy
production. In the case of wind, this concerns whether
and how strong the wind blows. A high capacity
factor can only be obtained where the wind blows
constant and forcefully from more or less the same
direction [10]. This is a characteristically offshore case.
Consequently, there are significant constant
improvements, mainly related to scaling up existing
technology and expanding on the experience gained
in the deployment of offshore wind turbines [11].
Very important for offshore wind power generation,
is it no longer needs to be limited to shallow shelf
regions [12]. The fixed platforms used to hold the
wind turbines, limit the regions where such offshore
wind farms can be built, but the invention of floating
wind turbines can extend the range of potential
offshore wind farms all around the world [13].
Presently, the wind is the second most important
renewable power source, behind hydropower, both
given generated power and installed capacity. It
accounts for 18% and 24%, respectively, in renewable
energy [7]. DNV Energy Transition Outlook forecasts
that 30% of all global electricity production will come
from wind energy by 2050, with 12% from offshore
wind and 18% from onshore wind [14]. IRENA
provides information that offshore wind projects in
Europe are now more and more competitive with
fossil fuels [9].
However, OPEC cools down the IRENA
enthusiasm and puts on attention that we need to be
careful with interpretation when comparing these
numbers to conventional power plant capacity:
“Detailed numbers from the IRENA for both
renewable capacity and generated renewable power in
2017 reveal an average capacity factor for the whole
renewable power sector of only around 32%. The
capacity factor is very important in judging the actual
contribution of additional power capacity. For
example, 1 MW of PV solar capacity delivers only
around 1,100 MWh in a year, 1 MW of onshore wind
capacity already delivers approximately twice as
much (2,170 MWh) and 1 MW of offshore wind
capacity delivers again substantially more at around
3,030 MWh. However, modern coal-fired power
plants used for base-load generation have a capacity
factor of 80%, and nuclear power plants are typically
intended to deliver a capacity factor of 90%. In these
cases, significantly more electricity is generated
throughout the year, namely 7,000 MWh and 7,900
MWh, respectively. To catch up with a typical coal-
fired power plant generating 600 MW of electricity,
3,800 MW of PV power or 1,940 MW of onshore wind
would need to be installed. Replacing a large1,300
MW nuclear power plant would require 8,200 MW of
PV, 4,200 MW of onshore or 3,000 MW of offshore
wind” [7].
Offshore wind is becoming competitive with other
renewable energy as technology is improving, with
larger turbines and higher turbine ratings (with up to
20 MW turbines expected to be used for projects in
2030) [11]. As a result, capacity factors are increasing,
boosting energy yields and reducing total installed
turbines and other costs [14]. Furthermore,
competitiveness and LCOE reductions have been
driven by recent projects. The increased deployments
and growing maturity of offshore wind markets in
Europe and China between 2010 and 2020 have also
reduced risks and uncertainty for investors [9].
As per IEA, the transformation of the energy sector
can happen without the O&G industry, but it would
be more difficult and more expensive [8]. A main and
very important aspect of the world's energy transition
is a fight against climate change to eliminate GHG
emissions. Due to a couple of new structure
regulations, like the Paris agreement regarding
climate change [5], a European Green Deal [15], or
IMO's new global sculpture limit of 0.5% for ships
fuel oil [16], the decarbonization process has begun.
The company's commitments to reduce emissions
intensities are becoming more common. The impacts
of the climate will become more visible and acute in
the coming years, increasing the pressure on all parts
of society to find solutions [8].
Agencies, institutions, research & intelligence
companies, and main O&G companies are trying to
aim the goals and introduce their pathways to find the
best solution. The IRENA’s Transforming Energy
Scenario together with several other scenarios have
recently been published to explore transition
pathways for the energy system in the coming
decades. Climate change or discussion about
decarbonization and its pathways is not a subject of
this study. However, is noticeable that the role of
renewable share is coming to increase in a significant