<![CDATA[Grist - Comment Feed for “Back to Petroleum”: BP shuts clean energy HQ, slashes renewables budget, dives into tar sands]]> Grist Comment Feed en Comment #1 by Sean Casten http://www.grist.org/article/back-to-petroleum-bp-shuts-clean-energy-hq-slashes-renewables-budget-dives-/ Tue, 30 Jun 2009 15:03:20 -0700 http://www.grist.org/article/back-to-petroleum-bp-shuts-clean-energy-hq-slashes-renewables-budget-dives-/1 Worth noting that the economics of the oil majors are driven largely by their upstream exploration & production operations.  Refining is a very low margin business, and retailing is often a money loser, driven by profits not on gasoline but slim jims.  E&P makes the money because the production costs - of any given field - are essentially fixed while the price bounces around with the market.  Ergo, if you own a low-cost field and the price is high, you make Beaucoups Petrodollars.

My personal sense from the folks I've talked to at BP is that they were genuinely committed to clean energy, but no less committed to looking after their shareholders.  The whole Beyond Petroleum business was formed when oil markets were low and the engine of an integrated oil major was sputtering.  In other words, there was no conflict between their clean energy commitment and their shareholder commitment.  But once the oil price started shooting up a couple years ago, those commitments came into conflict with each other. 

Bottom line is that if there's more money to be made in clean energy than in petroleum, I think BP will go there.  The fact that they've concluded they have higher returns in their current business may be unfortunate, but I don't think it makes them quite as cynical as you suggest.

]]> Worth noting that the economics of the oil majors are driven largely by their upstream exploration & production operations.  Refining is a very low margin business, and retailing is often a money loser, driven by profits not on gasoline but slim jims.  E&P makes the money because the production costs - of any given field - are essentially fixed while the price bounces around with the market.  Ergo, if you own a low-cost field and the price is high, you make Beaucoups Petrodollars.

My personal sense from the folks I've talked to at BP is that they were genuinely committed to clean energy, but no less committed to looking after their shareholders.  The whole Beyond Petroleum business was formed when oil markets were low and the engine of an integrated oil major was sputtering.  In other words, there was no conflict between their clean energy commitment and their shareholder commitment.  But once the oil price started shooting up a couple years ago, those commitments came into conflict with each other. 

Bottom line is that if there's more money to be made in clean energy than in petroleum, I think BP will go there.  The fact that they've concluded they have higher returns in their current business may be unfortunate, but I don't think it makes them quite as cynical as you suggest.

]]> Comment #2 by RisingTideNA http://www.grist.org/article/back-to-petroleum-bp-shuts-clean-energy-hq-slashes-renewables-budget-dives-/ Tue, 30 Jun 2009 17:53:39 -0700 http://www.grist.org/article/back-to-petroleum-bp-shuts-clean-energy-hq-slashes-renewables-budget-dives-/2 Aren't you glad BP is a lead author (via their membership in USCAP) of the climate legislation in congress?

]]> Aren't you glad BP is a lead author (via their membership in USCAP) of the climate legislation in congress?

]]> Comment #3 by solargroupies http://www.grist.org/article/back-to-petroleum-bp-shuts-clean-energy-hq-slashes-renewables-budget-dives-/ Wed, 01 Jul 2009 08:26:04 -0700 http://www.grist.org/article/back-to-petroleum-bp-shuts-clean-energy-hq-slashes-renewables-budget-dives-/3 All of those years of hopeful commercials we have been watching for nothing? This underscores how economics and only economics will drive change towards a green economy.

]]> All of those years of hopeful commercials we have been watching for nothing? This underscores how economics and only economics will drive change towards a green economy.

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