EGEB: BP will slash up to $17.5 billion off the value of its assets

In today’s Electrek Green Energy Brief (EGEB):

• BP will slash up to $17.5 billion off the value of its assets in its latest transition step.
• New US solar installations will increase by more than one-third this year, according to a new report.
• The “Transportation Fairness Alliance” is actually a coalition of anti-EV lobby groups.

The Electrek Green Energy Brief (EGEB): A daily technical, financial, and political review/analysis of important green energy news.

BP’s big transition

A week ago, Electrek reported that oil giant BP announced it will cut 15% of its workforce as a result of the pandemic’s impact on the economy and its plan to shift the fossil-fuel company to green energy.

The UK-headquartered company said it will cut 10,000 jobs from the current 70,100 positions.

Today, the fossil-fuel giant announced it will slash up to $17.5 billion off the value of its assets. That’s because it’s lowered its longer-term energy price assumptions for the same reasons cited above.

The Financial Times reports:

The UK energy major said coronavirus would have a lasting impact on the global economy as well as oil and gas demand, and that it expected the crisis to accelerate the transition toward cleaner forms of energy.

Its move on Monday marks the biggest recognition yet in the oil and gas industry that tens of billions of dollars worth of investments could be rendered uneconomic as the world pursues the Paris climate goals.

BP CEO Bernard Looney is aiming to transform the company into a leaner organization and a net zero company.

It will go into more specific detail in September about how it will invest less in oil and gas and more in renewables.

Solar prevails despite challenges

Despite this year’s economic hardships, US solar installations are projected to grow by 33% in 2020, according to a new report from Solar Energy Industries Association and energy research firm Wood Mackenzie.

Nearly 18 gigawatts are expected to be installed. The report reduced the original forecast by 9% (1.7GW) from nearly 20GW of installations for 2020 as a result of the pandemic. Delays in construction, less consumer demand, and tighter financing conditions have contributed to the drop.

Community solar continues to expand geographic diversification, but distributed solar expects to see 31% fewer installations in 2020 from the previous year. Utility-scale solar expects to install 14.4GW of new capacity in 2020, which is a new record high. This is due to low cost and states’ green energy targets.

“Transportation Fairness Alliance” isn’t fair

The research team at DeSmog has uncovered and debunked the messaging of a group that calls itself the Transportation Fairness Alliance. The lobbying group describes itself as such:

The Transportation Fairness Alliance is a diverse partnership of groups that support a competitive and equitable transportation sector. Collectively, we represent our nation’s manufacturers, small business owners, farmers, and folks who drive on our roads and pay utility bills.

The reality, which is explained on DeSmog’s website Transportation Fairness Alliance Revealed, is that it includes such fossil-fuel powerhouses as the American Petroleum Institute, the Independent Petroleum Association of America, the American Fuel and Petrochemical Manufacturers, and the National Tank Truck Carriers — the US’ largest association of gasoline and diesel truckers.

The coalition is being managed by FTI Consulting, a DC-based international consultancy firm that has a long history of running front groups and PR campaigns for the oil and gas industry.

DeSmog‘s spoof website breaks down myths versus facts about electric vehicles, and pointedly states the Transportation Fairness Alliance’s goal:

Oil companies don’t care about fairness. Oil companies want to make sure American drivers have no choice but to refuel at the gas pump.

Photo: Iran Daily