The world is facing an unprecedented energy transition, and renewable energy is at the forefront of this revolution. Among the various renewable energy sources, wind energy is rapidly emerging as a major contributor to the global energy mix. Wind energy is clean, abundant, and inexhaustible, and it has the potential to meet a significant portion of the world's energy demand.
In recent years, both the onshore and offshore wind markets have experienced tremendous growth, and they are expected to continue to expand in the coming years. According to the Global Wind Energy Council (GWEC), 72.5 GW of new onshore wind power capacity was added worldwide in 2021, with the top 5 markets being China, the U.S., Brazil, Vietnam, and the United Kingdom. In 2021 21.1 GW of new offshore wind power capacity was added worldwide, with China, United Kingdom, Denmark, Vietnam, and the Netherlands making up the top 5 markets. GWEC expects that in 2026 there will be 557 GW of new capacity added to the onshore wind market while the offshore will is expected to grow from 21.1 GW to 31.4 GW.
In this article, we will explore the growing onshore and offshore wind markets, the skills necessary for the industry, and the role of skills transitioning from the offshore O&G industry.
The Growing Onshore Wind Market
Onshore wind energy has been a major contributor to the growth of renewable energy in recent years. Onshore wind farms are typically located on land, and they are composed of multiple wind turbines that convert the kinetic energy of the wind into electrical energy. Onshore wind energy is a mature technology, and it has become increasingly cost-competitive with conventional energy sources.
The growth of the onshore wind market has been driven by various factors, including supportive government policies, technological advancements, and cost reductions. In many countries, governments have introduced policies and incentives to encourage the development of renewable energy sources, including onshore wind. Furthermore, technological advancements in wind turbine design and manufacturing have led to increased efficiency and lower costs, making onshore wind competitive with conventional energy sources.
The Growing Offshore Wind Market
Offshore wind energy has emerged as a rapidly growing market in recent years. Offshore wind farms, as the name states, are typically located in bodies of water, i.e., oceans and seas, and consist of multiple wind turbines that are mounted on fixed or floating structures. Offshore wind energy has several advantages over onshore wind energy, including higher wind speeds and the ability to locate turbines closer to population centers.
Like onshore wind, the growth of the offshore wind market has been driven by several factors, including supportive government policies, technological advancements, and cost reductions. In many countries, governments have introduced policies and incentives to encourage the development of offshore wind energy. Furthermore, technological advancements in wind turbine design and manufacturing have led to increased efficiency and lower costs, making offshore wind more competitive with conventional energy sources.
The offshore wind market has benefited from the development of new technologies, such as floating wind turbines. These turbines are mounted on floating structures, which allows them to be located in deeper waters where traditional fixed-bottom turbines cannot be installed. The development of floating wind turbines has opened up new areas for offshore wind development and has the potential to significantly increase offshore wind capacity.
Skills Necessary for the Wind Industry
The wind industry requires a diverse range of skills, including engineering, project management, finance, and environmental science. Engineers are required to design and maintain wind turbines, while project managers are responsible for overseeing the development and construction of wind projects. Finance professionals are needed to secure funding for wind projects, while environmental scientists are responsible for assessing the potential impact of wind projects on the environment.
In addition to technical skills, the wind industry also requires soft skills such as communication, collaboration, and problem-solving. Wind projects typically involve multiple stakeholders, including developers, investors, regulators, and local communities. Therefore, effective communication and collaboration are essential for successful wind project development and operation.
Role of Skills Transition from Offshore Oil & Gas Industry
The offshore oil and gas industry has a long history of operating in harsh offshore environments, and many of the skills and technologies used in this industry are transferable to the offshore wind industry. For example, many of the skills required for offshore O&G exploration and production, such as marine engineering, subsea operations, logistics, project management, knowledge of marine legislation, and inspection and maintenance, are also relevant to the offshore wind industry.
The 2021 UK Offshore Energy Workforce Transferability Review by Robert Gordon University found that > 90% of the UK’s oil and gas workforce have medium to high skills transferability and are well positioned to work in adjacent energy sectors, i.e., offshore wind, carbon capture, and hydrogen. GWEC states that these skills include areas of business support, business development, construction, installation, marine/naval services, facilities management, maintenance, mechanical engineering, subsea/pipeline construction, and health, safety, security, and environment (HSSE). This is not unique to the UK and is applicable globally.
As the offshore oil and gas industry continues to face challenges such as declining reserves and growing concerns over climate change, there is an increasing need for workers to transition to other industries, including offshore wind. The transition of skills from the offshore oil and gas industry to the offshore wind industry can help to address the growing demand for skilled workers in the wind industry and support the development of renewable energy.
Current Examples of Oil and Gas Companies Developing Onshore and Offshore Wind Farms
As the world shifts towards renewable energy, many O&G companies are diversifying their portfolios to include renewable energy sources. Below are some current examples of O&G companies developing onshore and offshore wind farms:
- Equinor: Equinor, formerly known as Statoil, is a Norwegian energy company that has begun to shift its focus towards renewable energy, including wind power. Equinor currently operates several offshore wind farms, including but not limited to the Hywind Scotland floating wind farm (the world’s first floating offshore wind farm), Dudgeon, Sheringham Shoal offshore wind farm in the UK; Empire Wind, Beacon Wind ( in partnership with BP) in the US; and with interest in MFW Baltyk III, MFW Baltyk II, and MFW Baltyk I Poland.
- Royal Dutch Shell: Royal Dutch Shell is one of the largest O&G companies in the world and has diversified its portfolio to include renewable energy sources. Shell currently operates onshore wind farms in the US (California and Texas) and has offshore wind operations and projects under construction across the US (Atlantic shores, Mayflower Wind), Europe (Norway, Netherlands), the UK, and Asia (South Korea).
- TotalEnergies: TotalEnergies is a French energy company, and similar to other companies in this list, they have begun diversifying their assets. TotalEnergies currently has numerous offshore wind projects in development, under construction, and in production. These include Seagreen, Erebus, West of Orkney Valorous, and Outer Downing in the UK; EolMed in France; New York Bight and North Carolina, USA; Yunlin, Taiwan; and Bada, South Korea.
- BP: BP currently operates several onshore wind farms in the United States, including the Sherbino Mesa wind farm in Texas and the Silver State South wind farm in Nevada. BP also has a partnership with Equnior to develop US offshore wind with the Empire Wind and Beacon Wind projects.
- Repsol: Repsol is a Spanish multinational O&G company that currently operates several onshore wind farms in Spain, including the Delta 2 and the Delta 3 wind farms. Repsol is currently a member of the WindPlus consortium working on the first semi-submersible floating wind farm.
- Eni: Eni is an Italian multinational O&G company that currently operates several onshore wind farms in Italy, including the Ascoli Satriano and the Acquasanta wind farms.
Conclusion
In conclusion, the onshore and offshore wind market is rapidly growing, driven by the global shift towards renewable energy sources. The demand for skilled professionals in this sector is high, with a range of technical and non-technical skills needed for successful project development and operation. As this industry continues to expand, the transition of skills from the offshore oil and gas industry presents a promising opportunity for workers looking to move into renewable energy.
The diversification of portfolios by major O&G companies to include onshore and offshore wind farms is an encouraging sign of the industry's future. Equinor, Royal Dutch Shell, TotalEnergies, BP, Repsol, and Eni are among the companies investing in renewable energy sources, including wind power. As the demand for clean energy continues to grow, we can expect to see more companies follow suit and invest in renewable energy sources, including onshore and offshore wind power. This transition can only be beneficial to the industry as a whole and to the global effort towards decarbonization.
Key References:
1. "Wind power overtakes coal in Texas for the first time" by Oliver Milman. The Guardian. August 13, 2020.
2. "Global Offshore Wind Report 2020" by the Global Wind Energy Council. 2020.
3. "Offshore Wind in the United States: A Path Forward" by the National Renewable Energy Laboratory. 2018.
4. "Offshore wind energy: A review of the current status, challenges and future prospects" by R. Srivastava, S. Kumar, and R. Gupta. Renewable and Sustainable Energy Reviews. 2015.
5. "Energy Transition Outlook 2021" by DNV GL. 2021.
6. "Transitioning offshore oil and gas workers into the offshore wind industry: Opportunities and challenges" by D. McManus, A. Hayes, and D. Nugent. Energy Policy. 2020.
7. "From Oil and Gas to Offshore Wind: An Evaluation of Training and Skills Transfer Opportunities" by C. Whaley and A. Brown. Proceedings of the ASME 2019 38th International Conference on Ocean, Offshore and Arctic Engineering. 2019.
8. "Oil and Gas Companies Take a Step Into Offshore Wind Power" by Stanley Reed. The New York Times. February 4, 2019.
9. "Offshore Wind Industry in Europe Continues to Grow" by Felix Richter. Energy Monitor. January 26, 2021.
10. "The Outlook for Offshore Wind Energy in the United States" by the National Renewable Energy Laboratory. 2019.
11. Ambrose, J. "Why oil giants are swapping oil rigs for offshore windfarms." (2021).
12. “Can the US’s offshore oil and gas hub pivot to wind energy” by Justin Gerdes, Energy Monitor. December 8, 2020
13. TotalEnergies’ offshore wind power portfolio worldwide - https://totalenergies.com/infographics/totalenergies-offshore-wind-power-portfolio-worldwide
14. Shell wind projects https://www.shell.com/energy-and-innovation/new-energies/wind/our-wind-projects.html
15. Offshore Wind Equinor - https://www.equinor.com/energy/offshore-wind
16. BP Wind - https://www.bp.com/en_us/united-states/home/what-we-do/gas-and-low-carbon-energy/wind.html
17. Repsol Wind - https://www.repsol.com/en/energy-and-the-future/energy-transition/windfloat/index.cshtml
