BP's Tatics in Cape Vincent Ny

Friday, February 14, 2014

BP Announces the Defeat of Renewables

Every year, energy giant BP (once British Petroleum) releases its “Energy Outlook” for the years ahead, an analysis of future trends in global production and consumption.  The 2014 report -- extending BP’s energy forecast to the year 2035 -- was made public on January 15th.  Typically, its release is accompanied by a press conference in which top BP executives offer commentary on the state of world energy, usually aimed at the business media.  This year, the company’s CEO, Bob Dudley, spoke with unbridled optimism about the future market for his company’s energy products, assuring his audience that the global supply of fossil fuels would remain substantial for years to come.  (Dudley took over the helm at BP after his predecessor, Tony Hayward, was dumped in the wake of the 2010 Deepwater Horizon disaster in the Gulf of Mexico.)Continue...


Stay Focused said...

Back in June of 2013 BP's Chief Economist, Christof Ruhl, spoke at a conference at Columbia University (three months after BP announced they were getting out of the wind business, and a year after they announced they were getting out of the solar business)

Ruhl made an interesting observation. He said that the renewable sector has grown rapidly with the benefit of generous subsidies, but as that growth has continued, the cost of subsidizing continued growth for an ever growing sector had been very expensive for taxpayers, ratepayers and national economies. And as ever more hungry sectors are created -- it has exceeded "governments' ability to continue subsidizing them" -- he said.

But Ruhl's own company got into the renewable business precisely because of the subsidies (and tax credits). It takes one to know one.

With subsidies becoming lass available perhaps it was Ruhl's advice to his own senior executives at BP that led to his company's decision to exit renewables. Ruhl may have seen that the subsidy gravy train is shrinking and BP just couldn't justify staying in the game in a post-subsidy environment.

Anonymous said...

Hey folks. Remember Bryan Stumpf? Instead of writing fiction for Acciona, he is now trying to make a living writing fiction for the big screen.