Jason Barton

Professional Information and Energy News

BP Sells Oil Rigs, Keeps Renewables

without comments

Whatever their faults, and there are many, BP has run a successful business for many years. This decision to retain their alternative and renewable energy assets in the face of massive selloffs in other areas, including oil-rich Venezuela and potentially Alaska, signals the belief on the part of some very intelligent business minds that this once hippy pipe dream has some very profitable potential.  Does it also signal their belief that Venezuela (or Alaska) may be destabilizing? That’s a separate matter.

The main point here is that the big players in the energy world see a necessary place for wind, solar, and other renewables.

July 14, 2010, 8:27 p.m. EDT

BP: No plans to sell alternative-energy units

By Naureen S. Malik

NEW YORK (MarketWatch) — BP PLC (BP, BP.LN) has no plans to sell its renewable-energy businesses as the British oil giant seeks to sell billions of dollars of assets in the wake of the Gulf of Mexico oil spill, the head of the company’s wind-power unit said Wednesday.
BP executives “have reaffirmed their commitment to the alternative-energy business; they told us it’s not for sale,” Graham said. “We look at every option all the time; if the price is right, we will sell.” However, “we haven’t built it [the renewable-energy business] to sell it. There is no need to sell it.”
The integrated oil company talked about selling off the renewable-energy business at an analyst meeting two years ago when it had a value of at least $5 billion, but later “they took it off the table,” said Argus Research analyst Phil Weiss. BP doesn’t break out the value of these assets in its financial reports. Every major oil company has some exposure to alternative energy, albeit a relatively small one. “I’m not sure it would be wise for any of them to move out of that space altogether,” Weiss said.
BP is reviewing options to build two wind-power projects totaling 400 megawatts, either by expanding existing wind farms or by going to new locations, possibly in California, Colorado, Indiana or Wyoming.
“We are not going offshore,” Graham said when asked whether the company was interested in developing wind power along the East Coast. “We have not seen anything that would attract us to go offshore. Too risky.”
By the end of the 2010, wind-power capacity will total 1,500 megawatts, up from 1,200 megawatts. BP has two projects under construction in Idaho and Colorado totaling 375 megawatts. A megawatt is enough to power up to a 1,000 homes.

Read the entire article here.

Written by Jason

July 20th, 2010 at 8:30 pm