As the BP oil leak disaster enters into its seventh week and the company sees its stocks plummet, perhaps some Big Oil executives may reconsider their attitude towards renewable energy.
A few years ago, it seemed that just about every major oil company was re-branding itself as an energy company and embracing major investment in technologies such as solar power. Then the value of oil skyrocketed. Canada’s tar sands and other risky operations became lucrative and suddenly much of that investment was being shed to pursue fast fossil fuel riches. While the global financial crisis put a dampener on the oil party, the fossil fuel machine rolled on, its inertia preventing an about-face.
In March 2009, BP Solar closed its solar panel manufacturing plant in Australia, citing profitability issues. However, the Gulf of Mexico oil disaster has so far cost BP an estimated USD$67 billion in 6 weeks in terms of its stock value and BP is also spending hundreds of millions of dollars a day in cleanup costs.
According to national solar power solutions provider Energy Matters co-founder Max Sylvester, “This oil spill tragedy is making the cost of keeping their Sydney solar panel manufacturing facility look like loose change – not even that. To this day I still cannot understand BP’s short-sightedness. Thankfully, Silex Solar has now taken over the premises and we again have panel manufacturing for the home solar power market occurring in Australia.”
Mr. Sylvester says the Gulf disaster is just the tip of the iceberg.
“I was shocked to read an article on The Guardian that stated an estimated 1.5 million tons of oil has been spilled in the Niger delta over the past 50 years. It also seems more oil is spilled in the Niger delta every single year than has been spilled in the BP disaster so far.”
“The article says Nigerian federal government figures show 7,000 spills between 1970 and 2000. It’s disgusting that there appears to be thousands of spill sites waiting to be cleaned up; some decades old. Even more disappointing was to discover elsewhere that BP and Shell are allegedly responsible for some of these unattended spill sites. Shell is another company that trimmed back investment in the solar power industry, also citing profitability.”
Mr. Sylvester says the real cost of some currently profitable oil operations is yet to be paid.
“How much is it going to cost to clean up the Niger delta when the issue finally becomes broadly known and the companies responsible are forced to deal with it? The massive cleanup is going to really cut into their profitability I would imagine. Are there other Niger delta’s out there? As with the BP Gulf oil leak disaster, I suspect shareholders will revolt as the issues come to light. These companies won’t even have their previous level of commitment to solar power to act as a partial shield against the outrage.”
Mr. Sylvester believes as oil becomes scarcer, Gulf-type disasters will become increasingly common as companies pursue the fossil fuel using risky methods.
“While we won’t be weaned off our addiction to oil overnight, I think it’s now high time that all these oil companies not only be forced to clean up their messes and lift their safety standards but to also use a sizable portion of their profits to reinvigorate their currently withering renewable energy arms. No more jumping on the green bandwagon for brownie points only to jump off at the faintest oily whiff of easier bucks – it’s time for them to get serious about clean and renewable power sources.”
“Short term profitability at any environmental cost is a crime against our planet. The bottom line aside, we’re talking about the future of humanity and unique ecosystems that also provide livelihoods for millions. Renewable energy can be highly profitable very quickly too – without the carnage. It’s these fossil fuel oriented companies that are holding back the renewables industry from achieving its full potential far faster than it will under current conditions.”
“Let the solar revolution finally begin in earnest, with oil companies rapidly evolving into fully committed partners working on real clean energy solutions rather than just fair weather friends offering token gestures and participating when it suits. Only then can we look forward to a future free of Gulf of Mexico type disasters.”
