• 4 minutes Why Trump Is Right to Re-Open the Economy
  • 7 minutes Did Trump start the oil price war?
  • 11 minutes Covid-19 logarithmic growth
  • 15 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 18 minutes China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 7 hours Dr. Fauci is over rated.
  • 2 hours China extracts record amount of natural gas from Gas Hydrates in South China Sea
  • 18 hours Dept of Energy ditches plans to buy Crude Oil for SPR
  • 5 hours Western Canadian Select selling for $6.48 bbl. Enbridge charges between $7 to $9 bbl to ship to the GOM refineries.
  • 4 mins TRUMP pushing Hydroxychloroquine + Zpak therapy forward despite FDA conservative approach. As he reasons, "What have we got to lose ?"
  • 7 hours Where's the storage?
  • 2 hours Hillary Clinton tweeted a sick Covid joke just to attack Trump
  • 4 hours Oxford Epidemiologist: Here’s Why That Covid-19 Doomsday Model Is Likely Way Off
  • 19 hours Wastewater Infrastructure Needs
  • 1 day Analysis into the Iran Outbreak
  • 19 hours >>The falling of the Persian Gulf oil empires is near <<
Saudi Arabia’s Deficit To Soar As Oil Price War Rages On

Saudi Arabia’s Deficit To Soar As Oil Price War Rages On

Saudi Arabia’s budget deficit is…

James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

Four Reasons why the US has no Offshore Wind Turbines

Four Reasons why the US has no Offshore Wind Turbines

Offshore wind farms in Europe are incredibly popular and the offshore wind sector is providing an increasing amount of electricity to power grids. In comparison, in the US not a single wind turbine has been deployed off shore.

Here we look at the four main reasons why the offshore wind energy sector in the US is struggling to grow, or even begin.

1.    Environmental opposition – Europeans are generally behind the development of offshore wind farms, and little opposition is raised when new ones are proposed, or installed. In the US however, environmentalists throw up strong opposition to potential offshore wind farms. In 2001 the Cape Cod wind farm was proposed, yet since then it has had to fight off dozens of lawsuits, and as a result not one turbine has yet been erected.

2.    Government support – Congress did provide the wind energy sector with a much needed life support by renewing the Production Tax Credit (PTC), which gives the wind developers 2.2 cents for every kilowatt hour they produce, and the Incentive Tax Credit, which reimburses 30% of the wind farms construction costs. Unfortunately this is still not enough to make wind competitive with fossil fuels, which receive hugely lucrative subsidies.

Related article: Do Wind Farms Change Local Weather Patterns?

3.    Lacking vital equipment - In order to secure the 450 tonne, 400+ foot tall turbine towers into the ocean floor a huge ship is needed, but as Chris van Beek, the president of Deepwater, mentioned, “at this point, there is not an existing vessel in the US that can do this job.”

Most ships that are capable of deploying offshore wind turbines exist in Europe, and fly European flags. Yet due to an old maritime law from 1920 called the Jones Act, any ship that sails between two US ports must fly a US flag and be registered in that country. The moment a turbine is secured to the seabed it counts as a port.

4.    State government v Federal government – For offshore wind farms to be developed, a license must be gained for the site, and a contract drawn up with an electric utility which agrees to purchase the energy produced at a fixed rate for a set period of time. In Europe the governments can award both, and do so together as part of a package. In the US the licenses for the deep water sites are awarded by the Federal government, and the contracts with utilities are sorted by the state governments. It is possible for one to be awarded and the other not, and invariably long delays do occur.

By. James Burgess of Oilprice.com



Join the discussion | Back to homepage




Leave a comment
  • Matthew` on March 04 2013 said:
    Can you please elaborate on the "hugely lucrative subsidies" that fossil fuels receive that lower the price of fossil fuels to the point that wind is not cost competitive? Since you state that wind power gets 2.2 cents per kilowatt-hour, can you provide the number of cents per kw-hr each fuel (coal, oil, gas) gets to reduce its cost to consumers?

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News