BP wind sale highlights renewable energy struggles

[FBaggins]

BP is getting out of the wind power business, selling its U.S. wind farm operations, including four in Texas.

A company spokesman said the decision is part of a continuing effort “to become a more focused oil and gas company … and to unlock more value for shareholders.”

The sale reflects the complicated relationship between the major oil companies and renewable energy over the past decade, even as wind and solar energy slowly gained market share.

“When … $50 million spent developing shale plays gives you $250 million in value, and $50 million spent developing a wind farm gives you $10 million in value, it’s not hard to figure out,” said Edward Hirs, an energy economist at the University of Houston.

http://fuelfix.com/blog/2013/04/03/bp-to-sell-wind-business/

"BP shut down its solar business in 2011."

[zipplewrath]

1. Short term

Classic short term thinking.

The $250 million is a finite resource that will ultimately run out. The wind farm will be$10 million year after year after year.....

[Smilo]

2. And yet in Australia

wind farms are growing and providing ever increasing electricity.

A lot is about perception and too many Americans are hooked on gas as a means of power. They don't want wind farms anywhere near them - while I can understand that - there are many places that farms could be placed that would harvest wind and not interfere with peoples' sensibilities.

[FBaggins]

4. They're growing here too. That's not the issue.

The issue is whether or not the company thinks they can make money with them.

Or, better put, whether they can make as much money as investing the same capital elsewhere.

It doesn't even have to be a decision that wind power can't work... it could just be that they recognize that it isn't their core competency and that others can do it better. The best time to sell an asset is when it's worth more to someone else than it is to you.

[Demeter]

3. BP is desperately trying to raise cash for oil-based lawsuits

so they are selling off the renewable future to protect their oil bidness.

Plus, they don't understand or appreciate renewables...after all, how can one make a killing, and hold people up for ransom? Empowering people isn't profitable! Certainly not at the levels BP is accustomed to.

[FBaggins]

5. How do wind farms "empower" people?

Otherwise... I'd say you're pretty close.