BP Selling US Onshore Wind Business…to Refocus on Oil
BP says “the assets were not aligned with its growth plans.”
There are signs that the era of eco-activists diverting American tax dollars to green energy schemes is ending.
Last month, the Biden administration appeared to be offering a “going out of business soon” giveaway of $4.3 billion to various “climate” projects.
Now, energy giant BP has announced plans to sell its U.S. onshore wind energy business, saying its assets do not align with its growth plans.
BP said it will launch the sale process shortly for the wind assets, bp Wind Energy, which has interests in 10 operating onshore wind energy assets across seven U.S. states.
“We believe the business is likely to be of greater value for another owner,” William Lin, BP’s executive vice president for gas and low carbon energy said in a statement.
Several offshore wind companies have cancelled or sought to renegotiate power contracts for planned U.S. projects in the past year, citing soaring materials costs, high interest rates, and supply chain disruptions.
bp Wind Energy’s assets, which have net total generating capacity of 1.3 gigawatts, are not aligned with BP’s plans for growth in Lightsource bp, the London-listed company said.
BP recently came under new management that focused on an energy source that worked at a civilization-worthy level.
The move marks a turning point under BP’s new CEO Murray Auchincloss, who is focusing on oil and gas in response to investor pressure and the declining profitability of renewable projects.
BP’s decision to pull out of onshore wind reflects a broader trend in the US renewables sector.
Many companies, including major players such as Ørsted, have recently cancelled or renegotiated power purchase agreements for offshore wind projects.
This situation is exacerbated by rising material costs, high interest rates and supply chain disruptions.
William Lin, BP’s executive vice president for gas and low-carbon energy, pointed out that these assets would be more valuable to another owner, justifying the decision to sell.
The company is now planning to participate in a new pipeline in Europe.
Meanwhile, BP also did a $1bn deal with Apollo Global Management for a stake in the Trans Adriatic gas pipeline on Monday. The size of the stake was undisclosed, but BP owned 20 per cent of the pipeline and Apollo said it would not have a controlling share. The pipeline runs from the Greek border with Turkey to Southern Italy and is part of a network that brings gas from Azerbaijan to Europe.
Thus, another green energy domino falls.
That’s called following the actual science, and the laws of physics.
— Bryant Wood (@TheDudeizAwesom) September 17, 2024
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Comments
Good to see some sense returning to the energy markets, now if we can just get a good push on nuclear going again in this country. That is the true long term solution and we really should be embracing it.
Has nothing to do with “sense” or anything else. The government subsides that made the so-called “renewable projects” (solar, wind) highly profitable for big businesses like BP and others are beginning to dry up and those same companies are now looking at having to bear the full burden of costs of those renewable projects. And having to bear the full costs all those once highly profitable ‘renewable projects” they become unprofitable and a drag on the company. Hence, they offload and sell their now unprofitable renewable projects subsidiary (bp Wind Energy) to some other
suckerbusiness and concentrate on what really makes the money. Oil and natural gas.The executives who backed this boondoggle should be sued for breach of their fiduciary responsibility.
Perhaps prosecuting the current crop of management for securities fraud would produce more honesty in the next crop of management via deterrence. Seeing your former boss rotting in prison for 25 to life after losing their prestigious position and their wealth to fines/claw back to provide compensation to the shareholder victims would probably make an impact.
Seems like a scam or at the very least gross waste….take the free money, waste it, go back to what you were doing anyways.
It must have taken the combined ‘talents’ of legal and marketing to come up with that brief statement.
““We believe the business is likely to be of greater value for another owner,” William Lin, BP’s executive vice president for gas and low carbon energy said in a statement.”
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Translation of this diplomatic statement: “In advance of a Trump-Vance win in the November election, we will attempt to get rid of this dog-turd of a subsidiary, before its asset value declines even more.”
just b/c at this time they are not sure who will win the wh
once that part is clear……….
Acquire, invest, divest. The corporate dance of money mismanagement.
Time to take the E off ESG.
Biden green new deal is trillion dollar fraud.
A fraud, and, a hustle/con/grift. The “green” hustle represents a huge theft windfall for well-connected leftist/Dhimmi-crat toadies, cronies and courtiers, courtesy of millions of taxpayers around the world.
Beyond Petroleum, eh?
I assume BP has gotten rid of that slogan, because it would be embarrassing to use it, now.
Yeah I liked the BP-Back to Petroleum comment. Might I suggest BP….Before Pussification