Their place in the Sun...
On april 6, the world's second largest oil company, bp Amoco, became the world's largest solar energy company. It spent us $45 million to win control of Solarex, preparing itself for life after oil. But the timing does not make sense. Oil prices are plunging like never before. In real terms, oil is cheaper today than it was in 1973. Prices have fallen by half in the last two years to a mere us $10 per barrel. And prices may fall further, giving a fillip to consumption, oil analysts say. Simultaneously, plummeting oil prices widen the gap between oil and solar energy prices, preventing solar energy from becoming a viable option.
So why is bp Amoco investing in a technology that has no market value today? The company could be positioning itself for the non-fossil fuel market in a world concerned about the impact of climate change induced by use of fossil fuels. Under the 1997 Kyoto Protocol, industrialised countries have agree d to cut carbon emissions by 5.2 per cent below 1990 levels by 2008-2012.
It is clear that the world will need a transition from its current carbon energy dependence to non-carbon options if global warming is to be averted. A recent study by the University of Hawaii points out the benefits that will accrue to the world with the rapid adoption of solar energy technologies. According to the study, if the world uses all its fossil fuel reserves, carbon emissions would reach a peak of 49 billion tonnes in 2175, and global temperatures would rise by 6
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