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Big Oil as Financiers of Clean Tech Ventures

In the middle of December, Royal Dutch Shell became only the latest oil ‘supermajor’ to invest in a renewable/sustainable energy startup. Their $26m investment in GlassPoint Solar Inc., a company whose technology Shell intends to use to improve wellpad heating efficiencies, follows in the footsteps of Chevron who are in a similar partnership with BrightSource Energy, another startup. Combined with the efforts of practically all oil/gas majors/supermajors (Exxon-Mobil, Statoil, Suncor, etc) to create their own clean energy portfolios – particularly wind and ethanol – Big Oil is increasingly showing up as a potential savior of the renewable technology industry.

It’s important to note this growing influence because at present, the renewable industry is at a crossroads vis-a-vis investment. Currently, the largest investors in this industry are governments – directly or through subsidies – but the global economic slowdown has affected this funding source. Bank loans, another major area (although whether this qualifies as an investment is questionable), have also seen sharp declines in North America or Europe. Big Oil, therefore, with its robust profit margins and opportunity for improvement (both from the public perception and economic efficiency standpoints) is in prime position to become the flag-bearers of renewable/clean technology.

Clean Efficiency is of the viewpoint that this is as it should be. For renewable companies to demonstrate viability to potential investors, they have to be tried and tested on large scale. This will also help drive down costs and make them more competitive with conventional technologies. Having the oil companies, their direct competitors, finance this growth is nothing short of a masterstroke and provides a win-win for both sides.

Are Renewables & Conventional Oil more ethical than Oilsands?

This is a piece that I posted to my personal blog over eighteen months ago. My perspective here was to promote discussion (and there was a heated twitter debate between myself and two friends) and ultimately make people think about the impact of their personal choices first and foremost. This debate/discussion is still relevant.

Culled from www.blackpolitico.blogspot.ca

While we wait for the hydrogen-powered cars of the future, does no one think of the socio-political issues around drilling in the Middle East? Sure, you can suck up oil from the ground using a straw in those places, but at what cost to the people there? At what cost to generation X of the United States and its allies, who aren’t fighting a war for world peace or to bring down a tyrant – as was the case in the first two world wars, respectively – but who are fighting instead so that the West can have oil at $70 per barrel?