“On the 15th anniversary of the BP blowout, the real takeaway is that oil companies that think they are ‘beyond petroleum’ are value destroyers for shareholders and for the environment.”

Every April commemorates BP’s Deepwater Horizon oil spill (April 2010). To the anti-energy Left, Deepwater Horizon is the epitome of oil-gone-bad, coming some 21 years after the Exxon Valdez oil spill. It was not supposed to happen again, but ….

The sad facts of Deepwater Horizon will forever remain; the multiple failures behind the seafloor accident meticulously documented. But a paradox remains. Mighty BP, captained by John Browne, the leading “environmentalist” of the petroleum industry, created a corporate culture that resulted in lax safety and environmental protocols. By saving about $5 million out of $100+ million in drilling costs, the company ended up paying out in excess of $60 billion.…

“Opponents of oil and gas have increasingly targeted energy projects through misinformation, protests, lawfare and misinformation, hurting a strategic U.S. industry that employs more than 11 million Americans, and negatively impacting our country’s economic stability.” (Energy Transfer, below)

Pragmatic rent-seeking by crony capitalists is a major problem in the United States. Political capitalism allows “the worst of get on top,” while misallocating resources from consumer to governmental ends. Think of Ken Lay of Enron. James E. Rogers of Public Service of Indiana/Duke Energy. John “beyond petroleum” Browne … Ben van Beurden of Royal Dutch Shell… GE’s Jeff Immelt… T. Boone Pickens … John Hofmeister. The wind and solar crowd. Even Kelcy Warren, co-founder and chairman of Energy Transfer, the subject of this post.

As a Houston Chronicle editorial stated on Monday:

A few of Trump’s Texas-based allies and donors stand to make a killing off Biden’s climate law.

“… why doesn’t a congressional subcommittee call these companies and a few more to tell us exactly what they are up to and what is going to happen to energy prices where parties have to buy credits for something that is not a pollutant?  After the meeting the company that has done the most to sell Kyoto should be awarded naming rights.”

I had a front row seat to many things energy and climate during my 16 years at Enron (1985–2001). At Political Capitalism, I described my Enron experience debating climate science and renewable policy (here).

Enron, in the words of a Greenpeace ex, was “the company most responsible for sparking off the greenhouse civil war in the hydrocarbon business.” [Jeremy Leggett, The Carbon War (London: Penguin Books, 1999, p.…

“[CEO Bernard Looney] and other BP executives have suggested that the company could play down future investment in areas including solar energy and offshore wind, according to some of the people. Discussions about the company’s direction have caused rifts inside BP over the past year, people close to the company say.”

The Wall Street Journal published a very revealing piece yesterday. “Bernard Looney seeks to sharpen strategic focus, with less emphasis on environmental goals,” reported Jenny Stasburg (February 1, 2023).

She begins:

Chief Executive Bernard Looney plans to dial back elements of the oil giant’s high-profile push into renewable energy, according to people familiar with recent discussions.

Mr. Looney has said he is disappointed in the returns from some of the oil giant’s renewable investments and plans to pursue a narrower green-energy strategy, the people said.