{"id":389981,"date":"2025-07-20T20:05:59","date_gmt":"2025-07-20T18:05:59","guid":{"rendered":"https:\/\/climatescience.press\/?p=389981"},"modified":"2025-07-20T20:06:01","modified_gmt":"2025-07-20T18:06:01","slug":"which-are-the-stranded-assets-now","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=389981","title":{"rendered":"Which Are The “Stranded Assets” Now?"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

<\/p>\n\n\n\n

From Manhattan Contrarian<\/a><\/p>\n\n\n\n

By Francis Menton<\/a><\/p>\n\n\n\n

How quickly things change. It was only two years ago, in 2023, that I was writing posts compiling long lists of quotes from climate activists warning that all assets used for production of coal, oil and gas were about to become obsolete and \u201cstranded.\u201d After all, wind and solar were (supposedly) cheaper and cleaner for generating electricity, which could then power anything and everything. Therefore, anyone stupid enough to make further investments in producing fossil fuels would lose everything. Here is\u00a0one such post from June 2023<\/a>, and\u00a0another from February 2023<\/a>.<\/p>\n\n\n\n

If you look today, you can still find predictions in 2025 that fossil fuel assets will shortly become \u201cstranded.\u201d (Here is one from Bloomberg from March 6<\/a>: \u201cInvestors Risk $2.3 Trillion of Stranded Fossil Fuel Assets.\u201d<\/em>). But such predictions are becoming fewer and fewer. Instead, what looks far more likely is that large portions, if not the entire business, of \u201crenewable\u201d electricity generation from wind and sun is likely to get \u201cstranded.\u201d<\/p>\n\n\n\n

Consider the latest from the UK. The current Labour government of Keir Starmer, elected just a year ago, is languishing with record-low approval ratings. A YouGov poll in May found Labour<\/a> with just a 23% \u201cfavorability\u201d among the populace, compared to 32% favorability for the Reform Party of Nigel Farage (and 16% favorability for the Conservatives). In other words, if and when the next election is held, Reform could well prevail. Meanwhile, the Reform Party has broken with the former all-party consensus in favor of \u201cnet zero,\u201d otherwise known as endless subsidies for wind and solar power.<\/p>\n\n\n\n

Two days ago, on July 16, the Deputy Leader of the Reform Party, Richard Tice, wrote to heads of UK renewable energy companies to advise them that a Reform government headed by Nigel Farage would terminate the subsidies for wind and solar energy. Here is a copy of one such letter<\/a> sent by Tice to Greg Jackson, CEO of Octopus Energy; and here is a July 17 press release from Net Zero Watch<\/a> publicizing Tice\u2019s initiative. Tice\u2019s letter specifically warns wind developers that if they are granted subsidies in an upcoming round of handouts from the Labour government dubbed \u201cAR7,\u201d a future Reform government will not continue those subsidies:<\/p>\n\n\n\n

Let me be clear: if you enter bids in AR7, you do so at your own risk. The political consensus that has sheltered your industry for nearly two decades is fracturing. Reform UK will not be bound by the assumptions or commitments of this failing Labour government.<\/em><\/p>\n\n\n\n

And from Net Zero Watch\u2019s press release:<\/p>\n\n\n\n

Richard Tice is absolutely right to put developers on notice that any new investments will become stranded assets under a Reform government. . . . [T]he real problem with renewables is not political risk but nature itself: the fundamentals of physics and economics, which make wind and solar inherently uneconomic. The industry has been constructed on subsidy, not on market fundamentals. After decades of windfarm handouts, consumers can no longer afford to foot the bill. Politicians can\u2019t override physics or economics \u2013 no matter how much they subsidise failure.<\/em><\/p>\n\n\n\n

The prediction that wind and solar assets will become \u201cstranded\u201d is fundamentally different, and fundamentally sounder, than the comparable prediction for fossil fuel assets. That is because wind and solar generators are entirely a creation of taxpayer subsidies. Without the subsidies they are uneconomic, and they will be worthless the minute the subsidies are withdrawn. In contrast, the fossil fuel assets are economic without government support. The prediction that fossil fuel assets will become \u201cstranded\u201d is based instead on a belief that governments will intentionally destroy these assets in their zeal to stop CO2 emissions. But that means that governments will continue a war on fossil fuels even as it becomes obvious that the alternatives are hugely more expensive, and as consumers are forced to bear the costs of soaring energy prices. My own prognostication is that even the craziest governments will relent in their efforts to destroy the fossil fuel businesses as the costs of doing some become ever more evident.<\/p>\n\n\n\n

Back here in the U.S., the Trump administration and Congress have now, via the One Big Beautiful Bill Act, put apparent end dates on subsidies to new wind and solar projects not yet initiated; but they have not threatened to pull subsidies from wind and solar projects that have gotten built based on a commitment of subsidies (particularly tax credits) during the useful lives of the facilities. As such, there would appear to be reason for owners of existing wind and solar facilities to hope that their investments will not become stranded. But it is not a sure thing. There are several ways for the wind and solar investments to fail even if the existing subsidies continue at currently committed levels. For example, wind and solar facilities could turn out to need more maintenance than anticipated to keep going; and if governments will not agree to increase the subsidies at that point, the assets will become stranded. Also, if the end of subsidies for wind and solar developments puts an end to construction of those, then the investments in facilities like factories to make wind turbine blades will become stranded.<\/p>\n\n\n\n

Another thing that can and should happen is that the grid operators around the country should restructure the markets by which they acquire electricity from power facility operators to make it such that the grid only buys power that is dispatchable. Such a reform \u2014 which is highly desirable \u2014 would leave all wind and solar generators stranded.<\/p>\n\n\n\n

Back in the oil and gas business, things are booming. Oil and gas production are hitting annual records. The demand for reliable energy only goes up. Anyone who thinks those assets are going to get \u201cstranded\u201d is delusional.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

How quickly things change. It was only two years ago, in 2023, that I was writing posts compiling long lists of quotes from climate activists warning that all assets used for production of coal, oil and gas were about to become obsolete and \u201cstranded.\u201d After all, wind and solar were (supposedly) cheaper and cleaner for generating electricity, which could then power anything and everything. Therefore, anyone stupid enough to make further investments in producing fossil fuels would lose everything. Here is\u00a0one such post from June 2023, and\u00a0another from February 2023.<\/p>\n","protected":false},"author":121246920,"featured_media":389984,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[691818608,691818228,691818154,691825591,691836417,691818299,691833487,691818728],"class_list":["post-389981","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-climate-activists","tag-fossil-fuels","tag-net-zero","tag-net-zero-watch","tag-one-big-beautiful-bill-act-obbba","tag-subsidies","tag-us-president-donald-j-trump","tag-wind-and-solar","fallback-thumbnail"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/07\/OIG-2023-07-29T181213.773.jpeg?fit=1024%2C1024&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-1Ds1","jetpack-related-posts":[{"id":263138,"url":"https:\/\/climatescience.press\/?p=263138","url_meta":{"origin":389981,"position":0},"title":"“Stranded Assets”: Who Will Have The Last Laugh?","author":"uwe.roland.gross","date":"06\/21\/2023","format":false,"excerpt":"It\u2019s been a persistent drumbeat for many years: Fossil fuels are obsolete, and the facilities that produce them, along with any further facilities that might be built for that purpose, will shortly become worthless. These facilities will be \u201cstranded assets.\u201d And any energy company stupid enough to make further investment\u2026","rel":"","context":"In \"Antonio Guterres\"","block_context":{"text":"Antonio Guterres","link":"https:\/\/climatescience.press\/?tag=antonio-guterres"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/0-wind-turbine-74.jpg?fit=1200%2C750&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/0-wind-turbine-74.jpg?fit=1200%2C750&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/0-wind-turbine-74.jpg?fit=1200%2C750&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/0-wind-turbine-74.jpg?fit=1200%2C750&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/0-wind-turbine-74.jpg?fit=1200%2C750&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":430766,"url":"https:\/\/climatescience.press\/?p=430766","url_meta":{"origin":389981,"position":1},"title":"Barclays Sounds the Alarm on Renewable Energy","author":"uwe.roland.gross","date":"03\/13\/2026","format":false,"excerpt":"Barclays PLC dropped a bombshell white paper last week titled \u2018Transition Realism: A Stranded Asset Perspective on the Energy Transition\u2019. The report pulls no punches in flipping the script on the climate establishment\u2019s favourite bogeyman. For years, we\u2019ve been lectured that fossil fuels are the quintessential stranded assets \u2014 trillions\u2026","rel":"","context":"In \"Barclays study\"","block_context":{"text":"Barclays study","link":"https:\/\/climatescience.press\/?tag=barclays-study"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/03\/AQNHl9AKaUujnp_oKefu2SSDZXqj5kkKnpsg2QUx1mG9gJiWTdguYjXMjVIa4vDgyWpjb0eadWQTVMvjaIrrOSiDo6A8U0tP3foiGqRpDmQ-EIlH29q2AYMajvpHZF9wJy_ZLSIM_tJ0TKAcwD65T_m0BEvRig.jpeg?fit=1200%2C1200&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/03\/AQNHl9AKaUujnp_oKefu2SSDZXqj5kkKnpsg2QUx1mG9gJiWTdguYjXMjVIa4vDgyWpjb0eadWQTVMvjaIrrOSiDo6A8U0tP3foiGqRpDmQ-EIlH29q2AYMajvpHZF9wJy_ZLSIM_tJ0TKAcwD65T_m0BEvRig.jpeg?fit=1200%2C1200&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/03\/AQNHl9AKaUujnp_oKefu2SSDZXqj5kkKnpsg2QUx1mG9gJiWTdguYjXMjVIa4vDgyWpjb0eadWQTVMvjaIrrOSiDo6A8U0tP3foiGqRpDmQ-EIlH29q2AYMajvpHZF9wJy_ZLSIM_tJ0TKAcwD65T_m0BEvRig.jpeg?fit=1200%2C1200&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/03\/AQNHl9AKaUujnp_oKefu2SSDZXqj5kkKnpsg2QUx1mG9gJiWTdguYjXMjVIa4vDgyWpjb0eadWQTVMvjaIrrOSiDo6A8U0tP3foiGqRpDmQ-EIlH29q2AYMajvpHZF9wJy_ZLSIM_tJ0TKAcwD65T_m0BEvRig.jpeg?fit=1200%2C1200&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/03\/AQNHl9AKaUujnp_oKefu2SSDZXqj5kkKnpsg2QUx1mG9gJiWTdguYjXMjVIa4vDgyWpjb0eadWQTVMvjaIrrOSiDo6A8U0tP3foiGqRpDmQ-EIlH29q2AYMajvpHZF9wJy_ZLSIM_tJ0TKAcwD65T_m0BEvRig.jpeg?fit=1200%2C1200&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":442605,"url":"https:\/\/climatescience.press\/?p=442605","url_meta":{"origin":389981,"position":2},"title":"UAE\u2019s OPEC Exit: Pragmatic Oil Policy, Not \u2018Stranded Assets\u2019 Panic","author":"uwe.roland.gross","date":"05\/04\/2026","format":false,"excerpt":"The United Arab Emirates\u2019 announcement on Tuesday that it will leave OPEC and OPEC+ effective May 1st sent shockwaves through the energy world. As the cartel\u2019s third-largest oil producer, with a production capacity approaching five million barrels per day and ambitions to push higher, the UAE was no peripheral player.\u2026","rel":"","context":"In \"Climate change\"","block_context":{"text":"Climate change","link":"https:\/\/climatescience.press\/?tag=climate-change"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/05\/0-UAEs-OPEC-Exit-Pragmatic-Oil-Policy-Not-%E2%80%98Stranded-Assets-Panic.jpg?fit=784%2C1168&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/05\/0-UAEs-OPEC-Exit-Pragmatic-Oil-Policy-Not-%E2%80%98Stranded-Assets-Panic.jpg?fit=784%2C1168&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/05\/0-UAEs-OPEC-Exit-Pragmatic-Oil-Policy-Not-%E2%80%98Stranded-Assets-Panic.jpg?fit=784%2C1168&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/05\/0-UAEs-OPEC-Exit-Pragmatic-Oil-Policy-Not-%E2%80%98Stranded-Assets-Panic.jpg?fit=784%2C1168&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":246241,"url":"https:\/\/climatescience.press\/?p=246241","url_meta":{"origin":389981,"position":3},"title":"Don\u2019t Believe the Geniuses Claiming to Know Our Energy Future","author":"uwe.roland.gross","date":"03\/01\/2023","format":false,"excerpt":"\u201cStranded assets.\u201d You know what those are.","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/03\/image-1.png?fit=1200%2C656&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/03\/image-1.png?fit=1200%2C656&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/03\/image-1.png?fit=1200%2C656&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/03\/image-1.png?fit=1200%2C656&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/03\/image-1.png?fit=1200%2C656&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":261197,"url":"https:\/\/climatescience.press\/?p=261197","url_meta":{"origin":389981,"position":4},"title":"Coal: The Missing Link","author":"uwe.roland.gross","date":"06\/08\/2023","format":false,"excerpt":"Wind and solar energy are unreliable and will continue to be so, even with battery support.","rel":"","context":"In \"Climate change\"","block_context":{"text":"Climate change","link":"https:\/\/climatescience.press\/?tag=climate-change"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/0Big-Boss-Coal.png?fit=1008%2C1200&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/0Big-Boss-Coal.png?fit=1008%2C1200&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/0Big-Boss-Coal.png?fit=1008%2C1200&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/0Big-Boss-Coal.png?fit=1008%2C1200&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":244195,"url":"https:\/\/climatescience.press\/?p=244195","url_meta":{"origin":389981,"position":5},"title":"We Will Still Need Fossil Fuels In 2050\u2013AEP\u2019s U-Turn","author":"uwe.roland.gross","date":"02\/18\/2023","format":false,"excerpt":"As the IEA projections above make clear, we may still be needing almost as much oil as we do now in 2050.","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/02\/image-407.png?fit=1200%2C750&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/02\/image-407.png?fit=1200%2C750&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/02\/image-407.png?fit=1200%2C750&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/02\/image-407.png?fit=1200%2C750&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/02\/image-407.png?fit=1200%2C750&ssl=1&resize=1050%2C600 3x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/389981","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/users\/121246920"}],"replies":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=389981"}],"version-history":[{"count":3,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/389981\/revisions"}],"predecessor-version":[{"id":389985,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/389981\/revisions\/389985"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/media\/389984"}],"wp:attachment":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=389981"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=389981"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=389981"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}