Posted on Categories Climate Change & EnergyTags , , ,

BP’s surprising pivot

Dan Farber, LEGAL PLANET

An oil giant decides to face the future instead of fighting it.

With all that’s going on, it’s easy to miss what would in normal times be major news. On Tuesday, BP announced it was beginning to turn away from the oil business. The most significant thing may be this: BP stock rose after the announcement.

BP has already sold its petrochemical business. It also announced that it will not begin oil and gas explorations in any new countries. By 2030, it plans to cut oil production 40% and increase annual low-carbon investments tenfold year by 2030. It also plans on a ten-fold increase in EV charging stations. operations in any new country. Other parts of the plan are vaguer, like a plan to partner with ten to fifteen other cities on their climate plans, as it has already started to do with Houston.

This is a bold move, and it remains to be seen whether any of the other major oil companies will make similar decisions. BP is not optimistic about the future of the oil industry, although it does expect oil and gas production to remain an important part of the energy mix. By BP’s estimate, if the world holds global warming to 2 °C, that would leave oil and gas production down by 50%. Presumably, less stringent climate policy would leave production higher, but it’s hard to see how oil remains a growth industry.

The stock market also lacks optimism about the oil. From 2008-2018, the S&P 500 increased more than 223%, while Exxon Mobil slumped 4.56%. The oil business faces several problems. Prices were highly volatile even before the coronavirus hit. Oil production is highly exposed to disruption by Middle East politics and other international crises. Unexpected market falls, like the one we are seeing today, can imperil companies that are financially overstretched and turn expensive projects into white elephants.

The future of the industry is clouded due to the rapid growth of renewable energy and energy storage. Part of the threat is from climate policy, but part of is simply from innovations that make renewable energy increasingly price-competitive. Moreover, in countries like China, public pressure to reduce air pollution also drives a move toward electric vehicles. The intense interest of the auto industry in electric vehicles is not a good sign for the oil industry.

Given these facts, BP’s move may be bold but it has a solid business rationale. That’s why the market responded favorably to BP’s decision. This provides some reason for confidence that it will carry through on its plans. It should also make some of the other major oil companies start to rethink their own strategies.

There can also be a kind of political feedback cycle that can hurt an industry. As an industry becomes less competitive, it has fewer employees and less wealth to use for political leverage. Meanwhile, competing industries increase their political clout. That can result in an adverse shift in the regulatory climate, which the industry might have been able to fight off in its heyday. That in turn weakens the industry economically, and the cycle repeats. The coal industry was strong enough to kill climate legislation in 2010, but it probably wouldn’t be today. Oil may find itself in a similar position down the road.

Source: https://legal-planet.org/2020/08/06/bps-surprising-pivot/

Posted on Categories Climate Change & Energy, Land Use, Sustainable LivingTags , , , , ,

Windsor approves $100 million apartment complex featuring advanced energy efficiency

Alexandria Bordas, THE PRESS DEMOCRAT

After five years of planning, Windsor officials have approved construction of an apartment complex that will be the town’s most eco-friendly housing community.

Called The Mill, it will include 360 apartments built over the next two years with all electric mechanicals such as heat pumps for water and cooling and appliances powered by solar panels installed throughout the 20-acre property. Also, residents will have electric vehicle charging stations and the ability to store excess solar energy, among other amenities. There will be no gas lines anywhere in the apartment community.

Town leaders touted the $100 million housing development as being zero-net energy, meaning energy used by apartment tenants on an annual basis will be renewable and generated on-site. It is believed to be the largest apartment project with such aggressive energy efficiency set for construction in Sonoma County, said Peter Stanley, a project manager with ArchiLOGIX, a Santa Rosa design and consulting firm.

Stanley is working with Bob Bisno, a Southern California developer that recently got the go-ahead from Windsor Town Council to build the housing project on the south end of Windsor River Road.

It will be walking distance from the planned Sonoma-Marin Area Rail Transit station.

The development represents another key piece of the town’s leaders renewable energy agenda to contend with climate change. Last month, Windsor officials said the town will use solar energy to power its water facilities, by teaming with a French company that’s installing floating solar panels this summer across a large pond on the town’s public works property.

The town council approved The Mill in hopes Windsor will get ahead of a California state law that will require all building permits issued for most new homes and multifamily residences after Jan. 1, 2020 to include rooftop solar panels. Also, state officials last year announced a goal of having all new commercial construction achieving zero net energy by 2030.

Read more at https://www.pressdemocrat.com/news/9780974-181/windsor-approves-100-million-apartment

Posted on Categories Land Use, Sustainable LivingTags , , , , ,

Windsor approves Vintage Oaks on the Town Green housing project

… Councilman Sam Salmon, the lone dissenting vote, said he was still troubled over the removal of trees and that the original low-income units proposed were dropped.
That was the consensus of the Town Council members Wednesday as they voted 4-1 to approve a revised development plan for the 387-unit Vintage Oaks on the Town Green, the once controversial project planned for the site of the former Windsorland mobile home and trailer park.“This is a great day for Sonoma County,” said Mayor Mark Millan, adding that it will provide new housing choices for both young and old.
“It’s sorely needed,” he said.

It’s a huge complement to the downtown and the new Bell Village center,” Councilwoman Deb Fudge said in reference to the site it will occupy just to the north of the new Oliver’s Market and shopping center.
She and other council members touted the ability residents will have to walk to the nearby station to ride SMART commuter trains, which Fudge said could be in service in Windsor by the summer of 2018, if grant funding comes through to extend the line beyond its current terminus just north of Santa Rosa.
Developers hope to begin building the first half of Vintage Oaks as early as next month and be ready to rent units out by the summer of 2017, according to project manager Peter Stanley, a principal in Santa Rosa-based ArchiLOGIX.
Southern California developer Bob Bisno said he and his partners expect to spend as much as $135 million to build the combination of apartments and townhomes, which will feature rooftop solar panels and a dozen electric vehicle charging stations initially, with potential to add more.
Read more at: Windsor approves Vintage Oaks on the Town Green housing project