BP is one of the largest oil companies in the world, and even they are seeing the renewable energy boom as an inevitability. As a result of the current market conditions, the company will be devaluing its assets by 17.5 billion dollars.
In their statement, BP had this to say, “growing expectation that the aftermath of the pandemic will accelerate the pace of the transition to a lower-carbon economy and energy system as countries seek to build back better so that their economies will be more resilient in future”.
Essentially, the company sees governments using the transition to clean renewable energy as a tool for economic recovery.
The Company Is Trying to Evolve
BP is aware that the fall of oil is inevitable and has already stated that they will be aiming for net-zero emissions by 2050. But, that plan may not be quick enough. Luckily, BP already has experience when it comes to renewable energy sources.
In the solar sector, Lightsource BP was the first company to provide solar energy at night in the UK. It has also expanded to other countries and creates solar farms. It also has a good start in wind energy. In the United States, it operates in 9 states and generates 926MW of energy.
However, the company has a lot of headway to make to even meet the 2050 goal, let alone do it at an accelerated rate.
We May Have Witnessed Peak Oil
It is very unlikely that oil usage will ever go back to the way it was just a year ago. The COVID-19 pandemic has lowered the amount of energy we are using every day. Sustainable and renewable energy sources are taking over.
Not only are the sources healthier, but they are also cheaper.
It is very likely that many countries will use renewable energy to jumpstart their economies and create jobs, and that will be the beginning of the end for big oil.