I subscribe to various magazines and journals that cover the energy and process industries. Almost every week I read an article that describes how large oil companies are giving up on ‘green energy’ initiatives.
For example, this week’s Hydrocarbon Processing published an article entitled ‘bp flags up to $5 B in low-carbon energy impairments, redirects spending to oil and gas’. The following statement summarizes the article’s message.
Oil major bp expects to book $4 billion to $5 billion in fourth-quarter impairments, mainly tied to its low carbon energy businesses, as it redirects spending to oil and gas
. . .
bp’s low-carbon portfolio also includes U.S. biogas producer Archaea which bp bought in 2022 for $4.1 billion. Citi analysts said they suspected impairments might be linked to this unit.
Archaea Energy is the largest renewable natural gas (RNG) producer in the US. bp acquired the Houston-based business in late 2022. It specializes in the development, construction and operation of RNG, landfill-gas-to-electric and dairy digester facilities that capture waste emissions and convert it into low carbon energy.
So, we repeatedly see that one of the many reasons for the decline of Net Zero programs is that the leading oil and gas companies cannot both provide ‘green energy’ and meet their profitability goals.
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