Even with a profitable renewable energy business, Chevron is withdrawing from the industry.
A 20% profit of $27 million for 2013 is nearly double expectations for the renewable energy division’s first year, but that’s chump change compared to what it earned from fossil fuels – $21.4 billion.
“In January, employees of Chevron’s renewable power group, whose mission was to launch large, profitable clean energy projects, dined at San Francisco’s trendy Sens restaurant as managers applauded them for nearly doubling their projected profit in 2013, the group’s first full year of operations. But the mood quickly turned somber. Despite the financial results and the team’s role in helping launch more than a half-dozen solar and geothermal projects capable of powering at least 65,000 homes, managers told the group that funding for the effort would dry up and encouraged staffers to find jobs elsewhere, say four people who attended the dinner.”
A move into European geothermal projects met rejection by top executives because the money could be put to better use for oil and gas, reports Bloomberg. The person who headed the renewable energy unit left in March and the company sold its business that works with federal agencies on energy retrofits, small solar and landfill gas systems.
“Renewables for oil companies are sort of like the coffee shop inside Bloomingdale’s,” Fadel Gheit, an analyst with Oppenheimer told Bloomberg. “On their list of priorities, it will always be at the bottom.”
So much for Chevron’s ads, which say it’s time to move to cleaner forms of energy – their “We Agree” campaign. It’s gone the way of BP’s spurious “Beyond Petroleum” ads.
Still, take a look at Chevron’s website. It says:
We agree. We need viable alternatives. We’re investing millions in geothermal, biofuel and solar technologies. It’s time oil companies get behind the development of renewable energy.
And how about paying for the mess you’re responsible for in Ecuador?
Read our article, Big Oil Prefers to Crush Renewables Rather Than Invest in Them.
Take a look at Chevron’s website: