More signs of winning - BP reportedly backing away from renewable energy and focusing on Oil and Gas.

Glad to see this. I was War-weary after the four year assault by the Biden Administration against Oil and Gas.

Nice to see the Climate Change-istas in retreat.


BP and renewable energy

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BP Will Reportedly Cut Renewable Energy Goals Amid Market & Investor Pressure
TipRanks Market Insider Feb. 24, 2025, 07:49 AM
A new report claims BP (BP) has lost interest in renewable energy as it refocuses on its fossil fuel business. Insider sources told Reuters the company will announce on Wednesday the elimination of its pledge to increase renewable generation to 50 gigawatts by 2030. This comes after the energy company altered its plan to reduce oil and gas production by 2030 in favor of renewable energy late last year.....

.... On top of cutting its renewable energy output plans, BP will also allegedly sell assets and divest businesses related to renewable energy. Lackluster performance from the sector is part of the reason the energy company is ditching its renewable goals.

There are also outside forces applying pressure to BP's renewable energy plans. That includes claims that Elliott Investment Management used its nearly 5% stake in BP stock to influence the oil and gas company's decision on renewable energy. Rebounding gas prices and President Donald Trump taking office are also likely contributing to this policy change.

How This Affects BP Stock Today
While environmental, social, and governance (ESG) investors won't be pleased with BP's course change, others are celebrating today as the company returns focus to a field with proven results. This had the stock up 0.18% today, building on a 16.26% year-to-date increase and a 1.41% rally over the last year. That's welcome news after the stock dropped 0.82% on Friday.....

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Turns out tha without massive subsidies, these lose money. Who'd have thunk?

Amazing how things change when these O&G companies don't have a gun held to their head.

Until there is enough demand in the market for renewables that they don't require a government subsidy to be profitable, no company should be compelled to invest their resources in it.

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On top of cutting its renewable energy output plans, BP will also allegedly sell assets and divest businesses related to renewable energy.

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Shell did the same thing last year. Closed a whole division.

That is huge. Shell and BP were the biggest sunshine pumpers on this stuff…

We have seen the real key was the excessive income/assets of the political-press class --- like many other government ventures it was all a scam to make those two rich at taxpayer's expense. The motivation behind the climate protocols was self-aggrandizement. What is needed is sensible programs that supplement not replace reliable energy with renewable energy in a stopgap fashion. You test drive and work out its bugs as you can in a purely supplementary role where the stakes are not high if there is failure. From what heard, Texas right now is doing something like this now -- everything has a backup, not even excluding coal. That's the way to do it.

fixer said:

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That is huge. Shell and BP were the biggest sunshine pumpers on this stuff…

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Dude, ExxonMobil is already building a blue ammonia plant. I big one too.

fixer said:

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That is huge. Shell and BP were the biggest sunshine pumpers on this stuff…

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Yes! I missed the article about Norway's Eqrinor (see below) when it came out a couple of weeks ago.

Equinor Cuts Renewable Goals

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Equinor Prioritizes Oil and Gas, Cuts Renewable Goals
By Andrew Topf - Feb 08, 2025, 12:00 PM CST

• Equinor is reducing its renewable energy targets for 2030, citing challenges in the renewable energy sector.
• The company is increasing its focus on oil and gas production, aiming to grow output by 10 percent from 2024 to 2027.
• Norway's energy market is experiencing turmoil due to increased energy exports to Germany and related political instability.

Norway's Equinor has become the latest energy company to stem its green growth plans as the backlash against renewables continues.

The company said on Wednesday it is reducing its ambition for installed capacity by 20 percent at the low end and 33 percent at the high end, from 12-16 gigawatts by 2030 to 10-12 GW. The higher target range was set in 2021.

Equinor noted its new target includes its 10 percent stake in the world's largest offshore wind developer, Denmark's Orsted, and its 16.2 percent ownership in solar company Scatec.

The addition of onshore power plants in Brazil and Poland during 2023, along with the start-up of the Mendubim solar projects in 2024, contributed to a 19 percent increase in renewables power generation in the fourth quarter and a 51 percent increase for the full year compared to the same periods in 2023.

The firm also said it is scrapping a previous 2030 target to allocate 50 percent of gross capital expenditures to renewables.

Reuters reported that the offshore wind industry has struggled with interest rate rises, cost inflation, supply bottlenecks, changing regulatory regimes, and unattractive margins.

Equinor said in its press release reporting Q4 and full-year 2024 results that it plans to increase oil and gas production by 10 percent from 2024 to 2027. The company expects USD$23 billion in free cash flow for 2025-27 by reducing capital expenditures and addressing costs. ....

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I work in upstream oil and gas, and have worked for several of the larger producers over the course of my career.

The single most annoying thing to me has been seeing these companies practically abandon the thing that keeps the lights on (oil) in a rush to tout their "renewables" and "green" projects to their employees.

I never understood a strategy that basically accepted the enemy's arguments (oil is dirty, bad, evil, polluting the world, etc. and we must move away from it ASAP) and then promised to repent from all of their "sins" by developing "cleaner alternatives", given that these initiatives were all massive money losers that required being subsidized by very industry they were calling evil. All while knowing that oil wasn't going anywhere and these "green" rabbit holes were losers.

Be proud of what you are and what you do. The oil and gas industry has made the world immeasurably more prosperous and overall better, and that is just fact. Remind people of that rather than trying to curry favor from people that will never like you (if for no other reason than you're an "evil corporation") to begin with.

WolfCall said:

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fixer said:

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That is huge. Shell and BP were the biggest sunshine pumpers on this stuff…

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Yes! I missed the article about Norway's Eqrinor (see below) when it came out a couple of weeks ago.

Equinor Cuts Renewable Goals

Quote:

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Equinor Prioritizes Oil and Gas, Cuts Renewable Goals
By Andrew Topf - Feb 08, 2025, 12:00 PM CST

• Equinor is reducing its renewable energy targets for 2030, citing challenges in the renewable energy sector.
• The company is increasing its focus on oil and gas production, aiming to grow output by 10 percent from 2024 to 2027.
• Norway's energy market is experiencing turmoil due to increased energy exports to Germany and related political instability.

Norway's Equinor has become the latest energy company to stem its green growth plans as the backlash against renewables continues.

The company said on Wednesday it is reducing its ambition for installed capacity by 20 percent at the low end and 33 percent at the high end, from 12-16 gigawatts by 2030 to 10-12 GW. The higher target range was set in 2021.

Equinor noted its new target includes its 10 percent stake in the world's largest offshore wind developer, Denmark's Orsted, and its 16.2 percent ownership in solar company Scatec.

The addition of onshore power plants in Brazil and Poland during 2023, along with the start-up of the Mendubim solar projects in 2024, contributed to a 19 percent increase in renewables power generation in the fourth quarter and a 51 percent increase for the full year compared to the same periods in 2023.

The firm also said it is scrapping a previous 2030 target to allocate 50 percent of gross capital expenditures to renewables.

Reuters reported that the offshore wind industry has struggled with interest rate rises, cost inflation, supply bottlenecks, changing regulatory regimes, and unattractive margins.

Equinor said in its press release reporting Q4 and full-year 2024 results that it plans to increase oil and gas production by 10 percent from 2024 to 2027. The company expects USD$23 billion in free cash flow for 2025-27 by reducing capital expenditures and addressing costs. ....

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Equinor doing this speaks volumes. I've worked on and off with them since they were Statoil. They did stuff on their land rigs that went above and beyond for environmental conservation compared to everyone around them. It cost them a lot of money too. It didn't matter. It all came "straight from Stavanger" as Houston corporate would say.

And what makes me laugh about BP the most is that they have some of the absolute nastiest rig locations on land compared to their counterparts. And it's not even close.

This is a good article on the history and run up.

https://finance.yahoo.com/news/bp-faces-existential-crisis-ruinous-150000771.html

This is not necessarily government doing anything as evidenced by Exxon thriving. This is woke idiocy at its finest manifesting in the late 90's and spreading like a disease through the entire company.

They were minority owners in lightsource, one of the most active utility scale developers, and just recently acquired the remaining 50% of lightsource late last year. That's quite a shift if they are now going to turn around and sell the entire platform 3 months later