Beyond Petroleum

Interesting post on WorldChanging about BP's announcement of its move into alternative energy sources. It is amazing what an impact marketing can have; in the UK, we've had a really heavy advertising campaign from BP which, if you didn't know what they were, might make you think they were an environmental campaigning organisation. A recent issue of the Economist was packed with similar ads from Exxon and others; indeed, it's amazing how far the ground has shifted, how the issue of climate change has mainstreamed into the thinking of big (energy) business.

But what is the reality behind this? BP aims for its alternative energy to earn $8 billion over the next decade. Place that next to BP's $350 billion of revenue generated last year. If they got $8billion in a year, that would be, ooh, about 2.25%. But in the next decade....hmmm. And little of the work is to be UK-based, despite the B for British in BP.

I don't object to this move, and there is no doubt that, amongst energy companies, BP are ahead of the game on this one. Let's be clear, though: this is an economic investment for them; there is no altruism or triple bottom line driving it. They know that oil will peak, and that their future (and future profits) could similarly dry up. So let's give a muted round of applause (what one of my friends calls a "golf clap"), continue the pressure for them (and their industry colleagues) to do better, press for genuine widesweeping corporate social and environmental responsibility, and remember that 99% of that tagline is Petroleum, and 1% is Beyond.

Comments

[George Flynn]

Alternative energy sources are absolutely vital. But I don't think you can count on the oil companies for much help until oil starts to run out. Then look out.

Wind, solar and hydrogen look to be the major answers. Wind can generate a lot of power. Solar is less powerful but it is fairly light weight and could be installed on what I can floating solar islands all over the oceans and lakes. I've written some of this up in an essay on solar on my blog,
http://www.tecscipol.blogspot.com

I've just found your blog. You have a lot of interesting topics.

Regards, George

[Jason]

According to a new UN report that is being prepared, we may look back on 2005 as being the "watershed" moment that business and investors turned to green power. They say "trillions" will be invested in clean technology in the next 10 years.

[Nick Temple]

Thanks George: I'll check out the blog.

Jason, I hope you're right.I hate to use the phrase "tipping point" (I hear it in practicalyl every powerpoint presentation I hear these days), but maybe we are approaching some sort of turning point. I think there will be a convergence of things: education filtering through, large scale events (Katrina), cululative effect of campaigning and lobbying, and the corporates realising there's money to be made (and money to be lost...). It's up to us to lead and hassle and shout and be at the forefront.