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BP recently announced plans to sell its US onshore wind business. Why? Because the new CEO is tasked with putting profit first. I used to think that the oil majors' expertise in large-scale energy projects would be pivotal in deploying renewable initiatives. Turns out, the expertise lies with the people, and they can bring it to pure-play renewable energy companies to help us achieve Net Zero by 2050. The way boards of most oil majors are structured and executives are incentivized means profit will always come first. In 2023, BP reported a profit of $13.8 billion, with the majority coming from its oil and gas business. Renewable energy is crucial for prolonging our existence on this planet but has lower margins, making it less attractive to companies accustomed to high returns. Not everyone can follow the path of Ørsted - a Danish company that transformed from a fossil fuel company to the world's largest offshore wind developer in just a decade. It requires total commitment to Net Zero and BP is just not there. What do you think is the role of Oil majors in the Energy Transition? Photo Credit: Houston Chronicle #netzero #BP #energytranstion #oilandgas #energytech #windenergy

BP’s decision to exit the wind business is an interesting development, signaling that the future of wind farm projects may lie with specialized players rather than multinational giants. Notably, onshore wind development demands a genuine, community-centered approach—something that, historically, has not been the strong suit of the oil majors. It will be fascinating to see how the sector evolves as companies with local focus and expertise take on a bigger role in shaping the renewable energy landscape. #OnshoreWind #RenewableEnergy #WindPower #SustainableDevelopment #CommunityFocused #EnergyTransition #CleanEnergy #GreenEnergy #UKRenewables

Here are key takeaways from the article about bp and Equinor parting ways, swapping interest, or focusing on specific US offshore wind projects: - BP and Equinor have agreed to restructure ownership of their joint US offshore wind projects. BP will take full ownership of the Beacon Wind 1 and 2 projects off Massachusetts/New York, while Equinor will take full ownership of the Empire Wind 1 and 2 projects off New York. - This restructuring allows each company to consolidate ownership of the lease areas best suited to their strategic priorities. - For BP, obtaining full control of Beacon Wind 1 & 2 provides over 2.5 GW of potential capacity to serve northeast US markets. However, BP expects to take a $600 million impairment charge due to reduced valuations. - For Equinor, Empire Wind 1 & 2 provide over 2 GW of potential capacity off New York. Equinor submitted a bid for Empire Wind 1 in New York's latest offshore wind solicitation round. - However, Equinor has paused development of Empire Wind 2 for now, citing industry-wide macroeconomic effects. The company expects around a $200 million combined loss from the transaction. - The deal reflects ongoing pressures in the US offshore wind market from inflation/supply chain issues impacting project economics. Companies are consolidating leases and slowing/cancelling some projects until market conditions improve. So in summary, this restructuring allows BP and Equinor to focus on their most promising lease areas amid challenging market conditions, but also involves write-downs reflecting reduced offshore wind asset valuations currently. #offshorewind #renewableenergy

Gulf States Renewable Energy Industries (GSREIA) intervened in this docket that allows a sleeved PPA for the Louisiana Energy Users Group, a coalition of 26 companies including Chevron, ExxonMobil, Honeywell, BASF, Nucor Steel and others that are demanding access to renewables. This week's decision is a milestone in allowing the largest energy consumers to choose where they will purchase some of that power. https://lnkd.in/gGGjaHgS

Can an oil company consistently make more money on investments in oil and gas or renewables? It depends on many factors... https://bit.ly/47ZPej9 The potential returns from investments in oil and gas operations relative to those available from renewable power or other low-carbon businesses are at the center of the debate over how oil companies should navigate the energy transition. Fossil fuel-focused firms often say they can achieve returns two- to three-times higher from their oil and gas investments than in renewables. Whether oil and gas outlays will meet those lofty hurdles in the future — or even have consistently in the past — is an open question, but it's one companies must answer if they want to thrive in the decade ahead. Learn more >> https://bit.ly/47ZPej9 #energy #oilandgas #renewables #energytransition #corporatestrategy #competitiveintelligence

🔋 We’re part of the energy transition and providing lifecycle solutions for renewable energy assets. ⚡ Did you know? 🔹 Pacific Partnerships is responsible for two solar farm developments expected to generate enough independent electricity to power approximately 145,000 Australian homes.  🔹 CPB Contractors has delivered five wind farms including the 420 MW Macarthur Wind Farm, the largest wind farm in the southern hemisphere at completion. 🔹 UGL has a portfolio of 19 completed and current major renewables generation and storage projects including four big battery installations with Neoen and Tesla 🔹 Sedgman Pty Limited has a portfolio of more than 20 critical minerals contracts including a critical minerals processing facility, the first of its kind in the Asia Pacific. Our integrated capabilities deliver the total project from investment and development, to engineering, procurement, construction, and operations and maintenance. Find out more in our latest Sustainability Report: https://lnkd.in/gY_vJJHH #EnergyTransition #Renewables #CriticalMinerals #Sustainability 

Exciting insights from FTI Consulting's latest report on renewable energy M&A activity! 2023 brought challenges like high interest rates and supply chain constraints, but 2024 is shaping up to be a game-changer. With high capital costs and a focus on decarbonization, we're looking at a surge in M&A activity. Government support, especially through the Inflation Reduction Act, is paving the way for what FTI Consulting calls a seismic shift in the U.S. energy sector and economy. Get ready for increased investments from corporate America and oil giants in the renewable energy space. https://lnkd.in/ecDwKgEJ

A significant renewable energy project in Newfoundland and Labrador!

Exciting news for Texas and the energy sector! Innovative companies like Element Fuels are choosing Texas for groundbreaking projects, such as the first greenfield refinery in the US in over 50 years. This milestone underscores the oil and gas industry's commitment to innovation and leadership in low-carbon solutions for critical energy infrastructure. #Innovation #EnergyLeadership #TexasEconomy #SustainableFuture https://lnkd.in/gB-uA6QZ

Renewables in a downturn? European oil and gas producers to adjust clean-energy strategies as the sector faces the twin challenges of rising costs and low returns. European oil companies have been under pressure from investors for several years to increase their shareholder returns by focusing on their core oil business. At the same time, the renewable energy sector - particularly offshore wind - has struggled with rising interest rates, supply chain bottlenecks and cost inflation. Norwegian energy giant Equinor will downsize its renewable energy unit. Equinor plans to prioritize profitability over growth and implement fewer renewable energy projects in fewer markets. Britain’s BP said last year it would pump more oil and gas than previously planned and pause its expansion into offshore wind, while Shell has scaled back its plans to reduce carbon emissions. #ICIS #EnergyTransition #RenewableEnergy https://lnkd.in/dFjjWTdA