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Goldman Sees $16 Trillion Opening as Renewables Pass Oil and Gas

  • Renewable capex seen overtaking upstream drilling in 2021
  • Low carbon prices could slow hydrogen, carbon-capture efforts
Rising From The Desert, Solar-Thermal Giant Defies Musk Battery
Photographer: Cristobal Olivares/Bloomberg

Spending on renewable power is set to overtake oil and gas drilling for the first time next year as clean energy affords a $16 trillion investment opportunity through 2030, according to Goldman Sachs Group Inc.

Renewables including biofuels will account for about a quarter of all energy spending next year, up from about 15% in 2014, Goldman analysts including Michele Della Vigna said in a June 16 note. This is in part driven by diverging costs of capital, as borrowing rates have risen to as high as 20% for hydrocarbon projects compared with as little as 3% for clean energy.