Despite lower returns than offshore oil and gas, offshore wind will become an increasingly attractive investment destination in the energy transition. Global investments in offshore wind are expected to total US$211 billion between 2020 and 2025, and the offshore wind market will become more attractive to oil and gas companies, Wood Mackenzie said in a new report this month. Over the next five years, growing investments in offshore wind are set to narrow the gap with offshore oil and gas investments as capital expenditure in offshore upstream is set to stabilize until 2022 and then drop through 2025, said Søren Lassen, senior offshore wind analyst, and Mhairidh Evans, principal upstream supply chain analyst at WoodMac. In some mature well-established upstream areas offshore Europe, China, and South Asia there could be “a point of convergence in those regions in the 2020s where offshore wind investment will match oil and gas,” WoodMac’s analysts said. Offshore oil and gas is now competing with the current trend of shorter-cycle investments in other oil and gas projects, and this trend lowers the visibility and certainty of investment outlooks beyond 2022.