The Gulf of Mexico is undergoing an energy transition as offshore wind projects surge, increasing support for the nascent $100bn industry and signalling a decline in the oil and gas industry. The Biden administration has announced the first sale of offshore wind leases in the Gulf off the coast of Texas and Louisiana, and Dominion Energy is spending $500m on the first US-built installation vessel, while hundreds work on the first US-built machine substation near Corpus Christi. To date, about 23% of the active projects in offshore supplies, such as survey work, substations and cables, which have been contracted by US companies have been made by companies in the Gulf and South, according to the Business Network for Offshore Wind.
The Gulf’s extensive infrastructure and experienced workforce is also perfect for offshore wind power, with research and design being conducted at a New Orleans shipyard, and the industry has the potential to create 4,500 jobs and provide a $445m boost to the economy in the years after construction. The first two major parks under construction, off the coasts of New York and Massachusetts, are due to begin generating power this summer, but significant challenges remain, including soaring costs and rising political opposition, especially in Texas, the state with the region’s largest electricity needs, where Republican lawmakers are making it harder to generate clean energy.
Tags: orsted,US Offshore Wind