Shell dumps wind and solar

[Tempest]

Quote:
Royal Dutch Shell provoked a furious backlash from campaigners yesterday when it announced plans to scale back its renewable energy business and focus purely on oil, gas and biofuels.

Jeroen van der Veer, the chief executive, said that Shell, the world's second-largest non-state-controlled oil company, was planning to drop all new investment in wind, solar and hydrogen energy.

“I don't expect them to grow much at Shell from here, due to portfolio fit and the returns outlook compared to other opportunities,” he said, speaking at the Anglo-Dutch group's annual strategy briefing.

http://business.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article5927869.ece

 

[Johnny]

Don't need any solar as global warming will take care of that.

Don't need any wind as it's a harnessed up in Washington D.C.

 

[ZZman]

There you go. Greed rears its ugly head. The short term profits don't look as good on it so lets drop it before our share holders get upset.

 

[Johnny]

About the size of it.

 

[Jim 5]

You're barking up the wrong tree.

The function of a corporation and the obligation of directors of a corporation is to increase shareholder value. The function of a corporation is not to save the world. That is the role of government if its electorate desires same.

Publicly traded companies that lose money in the coming years due financially un-viable "green" technology have negligent directors and officers. That is because they have failed to achieve their fundamental mission, which is to make money while obeying the law.

The people who object to these companies making a choice to keep their companies financially viable are free to sacrifice their savings and retirement plans on environmental initiatives. They can find and invest in the companies that will lose money in these pursuits. They are easy to find. Look in the yellow pages under "charities".

In my view, the problem is that governments haven't created an arena in which it is profitable (or even mandatory) to invest private peoples' capital in green technologies.

To those who object to this behavior do not understand the fundamental interaction between business and law. Rather than complaining about companies doing what they are designed to do, talk to your elected officials to bring about change to the rules of the game that govern business.

 

[Johnny]

Originally Posted By: ZZman
lets drop it before our share holders get upset.


Jim 5, this is the part that I was agreeing about. I agree with what you just said. The corporation needs to take care of the shareholders. They are in business to make a profit. Something AIG should have thought about. And after all, they are an oil and gas company. They have the know how to do all those other things and when it is profitable for them to do it, they will.

 

[wannafbody]

Right now solar and wind aren't viable. If some solar breakthroughs occur then solar for home use might be an option.

 

[Max_Wander]

Just wait till $150/barrel again, and they'll be rotating faster than a water molecule in a microwave.

 

[Max_Wander]

Originally Posted By: Jim 5


The function of a corporation and the obligation of directors of a corporation is to increase shareholder value. The function of a corporation is not to save the world. That is the role of government if its electorate desires same.


*sigh* in an ideal world, Jimmy5, in an ideal world.

 

[Shannow]

And if fossil fuels didn't get a free ride, other stuff WOULD be competetive.

 

[bruno]

Actually the big oil companies are among the best when it comes to long term planning . If Shell is dropping out of wind and solar there's some solid reasoning behind it !

 

[salesrep]

'He said that instead Shell would focus its remaining renewable energy investments on biofuels, where it is conducting research into “second generation” fuels, so far with little commercial success."

Perhaps.

Wiki

"Biohydrogen. Biohydrogen is the same as hydrogen except it is produced from a biomass feedstock. This is done using gasification of the biomass and then reforming the methane produced, or alternatively, this might be accomplished with some organisms that produce hydrogen directly under certain conditions. BioHydrogen can be used in fuel cells to produce electricity."

 

[javacontour]

I guess that's better than saying Shell breaks wind...

I know, groan.

 

[Tempest]

Originally Posted By: bruno
Actually the big oil companies are among the best when it comes to long term planning . If Shell is dropping out of wind and solar there's some solid reasoning behind it !

It's especially interesting considering there are considerable subsidies out there now and on the way. Must really be a looser.

 

[oilyriser]

The wind market here has been completely screwed up by government. Usage subsidies and ultra-fast tax write offs have made prices of equipment much higher than they would be if it was a free market. After the crash, there might be a few wind farms for sale, on the cheap. I'm waiting.

 

[Tempest]

Subsidies causing higher prices? Very interesting. Can you expound?

 

[moribundman]

Originally Posted By: Jim 5
The function of a corporation and the obligation of directors of a corporation is to increase shareholder value. The function of a corporation is not to save the world. That is the role of government if its electorate desires same.


I hope Tempest doesn't read this.

 

[oilyriser]

Originally Posted By: Tempest
Subsidies causing higher prices? Very interesting. Can you expound?


Increase demand with usage subsisies, and you move the supply-demand curve to a higher price point.

Try buying a heat pump in Canada. Vendors have jacked up their prices by the exact amount of the subsidy available to consumers.

 

[Shannow]

Originally Posted By: Tempest
Subsidies causing higher prices? Very interesting. Can you expound?


Oz introduced a $7,500 first home buyer's grant ($21k if you buy a new home)...guess what happened to prices for everybody ?

 

[Gary Allan]

Quote:
The function of a corporation and the obligation of directors of a corporation is to increase shareholder value.


Well, sure ..but I imagine that there's some sensible merit to assuring a sustainable leading edge presence in any emerging technology.

Your definition alone makes every corporation set up to experience a penny wise and pound foolish scenario.

It's all about time spans. Humans are weak minded and short sighted. Realty will continue long after yesterday's profit is eroded into meaninglessness.

Our whole economic experience has been devastated by having to have tomorrow's profits today under some foolish notion that the future is imaginary or that it will take care of itself in a like manner as it is today. It has faith in a method that has a proven failing, or rather declining, track record of benefit.