“20% to 50%. That’s the internal rate of return — the money a company will make off the capital it puts into a project — for a company producing U.S. oil and gas right now… By comparison, 5% to 10% (is) how much money… the same company could expect to make if it put money in solar or wind projects at the moment.”

[COMMENTARY] Many banks and financial institutions will not now finance fossil-fuel projects. Hence, there’s a dearth of such new projects. Thus, surviving oil wells and small-scale fossil-fuel development projects can command great returns. Many of these projects are financed with internal cash flows and are not reliant on a bank or outside funding. So, they can be highly profitable at today’s oil prices in particular.
Making oil is more profitable than saving the planet. These numbers tell the story. Camila Domonoske interviewing Dan Pickering, December 12, 2023, npr, USA.