New regulations and drilling restrictions will raise the cost of offshore production which will drive up the cost of oil.
The company claimed the design could reduce the cost of offshore turbines by as much as 45%.
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Of course the cost of offshore wind farms are higher compared to onshore but will be offset by power output.
Offshore drilling to reduce the cost of gas and spur truck sales.
It is a fair bet that offshore power's capital cost will fall.
And the cost differential between floating them 20 miles offshore from a domestic shipyard vs. 7, 000 miles from China makes this a fairly Asia-proof business as well.
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In practice, it is predictable that the result of this policy will be that manufacturing jobs associated with presently controlled technologies will move offshore, where production can take place at lower cost.
When an offshore oil rig is outdated, or can no longer cost-effectively pump oil, most countries require that the oil rigs be wholly decommissioned.
In trading on Tuesday, bargain hunters could buy shares of Hercules Offshore Inc ( NASD: HERO) and achieve a cost basis 10.8% cheaper than Bates Jr.
Offshore wind projects are evaluated in terms of their initial installed capital cost (ICC) as well as their life-cycle costs, which are often described as the levelized cost of energy (LCOE).
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This could be possible as there is tremendous potential for economies of scale, both in terms of mass production, which reduces the cost of each turbine, and in terms of the construction and management of vast wind farms offshore where there are few limits on available acreages.
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