Yesterday the Trump administration suspended five offshore wind projects. In terms of capex, they were 35% to 75% complete. One was already generating electricity from the project's first phase.
This is every bit as stupid as the Biden administration's suspension of drilling permits and oil and gas leases on federal lands and the federal offshore.
So now who's going to invest in massive, multibillion dollar offshore oil and gas and wind projects in the USA? Years, or over a decade can elapse between construction and start up. If the Democrats are in power you've got to worry if they'll ban drilling. If it's the Republicans, whether they'll jerk the rug out from under the wind projects.
Hell, if you want to, jerk all the subsidies and tax breaks for wind, and let the projects proceed. That's not ideal. After all, companies invested billions based on commitments made by the federal government. But it pales by the side of terminating projects companies already spent billions on, if that's what Trump's trying to do.
Trump stranded capital with his trade wars. The Chinese factories couldn't export to the USA, so people built factories in places like Vietnam. Then he jacked tariffs up on Vietnamese goods to 46%, so I guess people were supposed to abandon capacity there and move to Guatemala. Thankfully, Trump saw the light and backed off of Vietnam. The golf course and real estate his family's developing there might have had something to do with that, but no matter.
But this shit is about 10X worse. He's trying to do the same thing, in the USA, simply because he doesn't like wind. And yeah, I'm sure without subsidies the offshore projects wouldn't have made sense at the outset. But now that 75% of the project's built, why on God's Green Earth would you axe it?
Hopefully the courts will come to the rescue, like they did when Biden went after the oil companies.
Insane.