Renewable Investment Half as Profitable as Oil

Oil still returns more than double that of renewables investment. All round the world, people are campaigning to stop oil. Seems like the whole world wants to stop using oil. Unfortunately, it just isn't possible, not yet and not for decades. Investment keeps rolling in and oil keeps rolling out. Out from the same old places and also from new pipes in new locations in new holes in the ground.

Investment Returning to Oil

Oil is here to stay for a long time yet. It attracts large investments, producing good returns. There was a swing towards renewable investment, but the tide is turning back towards oil. Better returns win future investment money. Investing in green projects make individuals feel better about themselves and looks good on company websites and as sound bites at AGMs, but the bottom line wins every time and oil is winning back much of the lost ground.

It's A Gamble

For the first time, investment in renewables now totals more than fossil fuels. Renewables is a much longer term investment. Oil returns more in the short to medium term. In the long term, the jury is out, it might seem likely that renewables have to win in the end. And they will. However, will it be the current renewable technology and it's investors that get the returns, or will their investments dwindle as better technology with new investors take over? Currently, with renewables, knowing when and where to put your money is a gamble. Oil is safer, for now.

About The Author
Helena Montgomery
Chewells Contributor

Helena is our longest serving contributor. She lives in an area heavily dependant upon the oil industry. She... »

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