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Cost of Capital Spikes for Fossil-Fuel Producers

Ten years ago, developing oil and gas projects was about the same as renewable endeavors. Not anymore.

A worker guides a drilling pipe at the Gazprom Chayandinskoye oil, gas and condensate field near Lensk, Russia, on Oct. 13.

A worker guides a drilling pipe at the Gazprom Chayandinskoye oil, gas and condensate field near Lensk, Russia, on Oct. 13.

Photographer: Andrey Rudakov/Bloomberg

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Ten years ago, the “cost of capital” for developing oil and gas as compared to renewable projects was pretty much the same, falling consistently between 8% and 10%. But not anymore.