The problem for BP is that the return on capital for renewables is lower than they are used to in terms of oil and gas, due to the lower technical complexity and general absence of price risk.
So shareholders are not happy with renewables. Flaw in this reasoning is that they are judging the historic returns of oil and gas, rather than the likely future ones in a lower oil price environment. For BP, basically whatever direction it takes is a disaster.
So shareholders are not happy with renewables. Flaw in this reasoning is that they are judging the historic returns of oil and gas, rather than the likely future ones in a lower oil price environment. For BP, basically whatever direction it takes is a disaster.
