BP to sell US onshore wind business as it shifts back to oil
BP has agreed to a deal to sell off its onshore wind business in the US as the oil multinational turns its back on renewable energy after a failed attempt to go green.
The company said it would sell its share of 10 wind farms, which generate enough clean energy to power more than 500,000 US homes, to the New York-headquartered LS Power.
The terms of BP's deal with the power and energy infrastructure company were not disclosed. However, the value of the wind farms, nine of which are operated by BP, is understood to be lower than the US$2 billion (£1.5 billion) valuation estimated for BP's onshore wind business in the past.
The sale is part of BP's plan to offload US$20 billion in assets 'to simplify and focus the business' after a failed attempt to reinvent the oil multinational as a net-zero energy company, and as it comes under pressure over its sluggish share price.
BP said it was 'no longer the best owners' to take the wind business forward. Renewable energy in the US has faced increasing pressure under Donald Trump's presidency.
The deal emerged weeks after one of the architects of BP's failed green agenda, Giulia Chierchia, stepped down from her role as executive in charge of sustainability strategy to 'pursue other opportunities' outside the company as it shifted back towards oil and gas production. She will not be replaced at BP, the company said.
Amid increasing pressure from President Donald Trump and a sluggish share price, the oil multinational says it is no longer the best owner to take its onshore wind business forward.
BP's botched green ambitions have contributed to a collapse in the company's share price over recent years, which has made the 120-year-old company easy prey.
Shell was forced last month to deny market speculation that it planned to snap up its smaller rival. Shell has lost almost a third of its market value in the past year and is now worth about £58 billion.
Its reported interest in BP emerged months after the activist hedge fund Elliott Management amassed a stake in the company to agitate for changes to BP's strategy and its board.
So far, the turnaround plan spearheaded by BP's chief executive, Murray Auchincloss, has failed to convince investors that the company can recover from a difficult few years during which its rivals have thrived by focusing on fossil fuels while global markets have been volatile.
Auchincloss plans to shore up BP's balance sheets by completing $3 to 4 billion of divestments this year, and has already agreed to deals worth $1.5bn. He is expected to set out further progress on the divestment drive alongside the company's financial results for the second quarter in the first week of August. Meanwhile, BP is searching for a new chair to replace Helge Lund.
William Lin, the head of the company's gas and low-carbon energy business, said: 'We have been clear that while low-carbon energy has a role to play in a simpler, more focused BP, we will continue to rationalise and optimise our portfolio to generate value.
'The onshore US wind business has great assets and fantastic people, but we have concluded we are no longer the best owners to take it forward.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Province
25 minutes ago
- The Province
The two ways Trump's tariffs on Canada could collapse — despite his fight to keep them
The courts are considering whether they're even legal under U.S. law, and the American economy has yet to feel the pain of higher prices Dubbing it "Liberation Day," U.S. President Donald Trump announces his plan to enact sweeping new reciprocal tariffs worldwide, on April 2, 2025. Photo by Brendan Smialowski/AFP via Getty Images/File WASHINGTON, D.C. — Time's up. On Friday, U.S. President Donald Trump raised the tariff rate on Canadian goods not covered under the Canada-United States-Mexico Agreement (CUSMA) from 25 to 35 per cent, saying they 'have to pay a fair rate.' The White House claims it's because of Canada's failure to curb the 'ongoing flood of fentanyl and other illicit drugs.' U.S. Customs and Border Protection (CBP) data, however, show that fentanyl seizures from Canada make up less than 0.1 per cent of total U.S. seizures of the drug; most smuggling comes across the Mexican border. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Exclusive articles by top sports columnists Patrick Johnston, Ben Kuzma, J.J. Abrams and others. Plus, Canucks Report, Sports and Headline News newsletters and events. Unlimited online access to The Province and 15 news sites with one account. The Province ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles and comics, including the New York Times Crossword. Support local journalism. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Exclusive articles by top sports columnists Patrick Johnston, Ben Kuzma, J.J. Abrams and others. Plus, Canucks Report, Sports and Headline News newsletters and events. Unlimited online access to The Province and 15 news sites with one account. The Province ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles and comics, including the New York Times Crossword. Support local journalism. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors But the future of Trump's policy also rests on shaky ground, and the tariffs could come crashing down even if Canada can't reach a deal at some point. Imposed through a controversially declared 'national emergency' under the International Emergency Economic Powers Act (IEEPA), the tariffs come with essentially three paths for relief to Canadian exporters and their American customers: the courts and the economy. And there's always the wildcard: that the president changes his mind. Without relying on that, National Post looks at two very possible ways out of all this: The courts: There is a big question hanging over whether Trump's tariffs are even legal under the U.S. Constitution, which gives Congress powers over trade. Trump has bypassed that by claiming he's using presidential IEEPA emergency powers. This advertisement has not loaded yet, but your article continues below. On Thursday, the Washington, D.C.-based Federal Circuit Court of Appeals convened an en banc hearing for oral arguments in challenges to Trump's use of IEEPA. The 11 judges questioned whether the law meant for sanctioning adversaries or freezing assets during emergencies grants Trump the power to impose tariffs, with one judge noting, 'IEEPA doesn't even mention the word 'tariffs.'' The White House, meanwhile, says the law grants the president 'broad and flexible' emergency powers, including the ability to regulate imports. 'Based on the tenor and questions of the arguments, it appears that the challengers have the better odds of prevailing,' Thomas Berry, the CATO Institute's director of the Robert A. Levy Center for Constitutional Studies, said in a statement. 'Several judges peppered the government's attorney with skeptical questions about why a broad term in IEEPA like 'regulate importation' should be read to allow the president to unilaterally impose tariffs.' Essential reading for hockey fans who eat, sleep, Canucks, repeat. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. Trump's lawyers claim his executive order provides the justifications for the tariffs — in Canada's case, fentanyl. But Berry said 'those justifications would not matter if IEEPA simply does not authorize tariffs in the first place. That is the cleanest and simplest way to resolve this case, and it appears that the Federal Circuit may be leaning toward that result.' A decision is expected this month, and if it's a resounding push back from the judges' panel, said Andrew Hale, a senior policy analyst at Heritage Foundation, the Supreme Court may not even take up the case. If so, he says, 'these Liberation Day tariffs and everything that's been imposed under emergency legislation, IEEPA, that all evaporates.' At that point, the White House would not be able to declare across-the-board tariffs against countries. Instead, it would have to rely on laws allowing tariffs to be imposed on specific products that are found to threaten U.S. national security, like those currently imposed on Canadian steel and lumber. This advertisement has not loaded yet, but your article continues below. The economy: The other path to tariff relief is through economic pressure. If Americans start to see higher prices and economic uncertainty, and push back at the ballot box — or threaten to do so — it could force Trump to reverse course. The most recent figures show that U.S. inflation, based on the Consumer Price Index, hit around 2.7 per cent in July. That's a slight rise, fuelled by rising prices for food, transportation and used cars. But it's still close to the Federal Reserve target of two per cent. U.S. unemployment rose slightly to 4.2 per cent in July, while far fewer jobs were created than expected, and consumer confidence rose two points but is still several points lower than it was in January. Overall, most economists agree that risks of a U.S. recession over the next 12 months are relatively low, but skepticism over growth remains high. 'Our outlook is for slower growth in the U.S., but no recession,' said Gus Faucher, chief economist of The PNC Financial Services Group. He notes that the 'tariffs are going to be a drag' because they are a tax increase on imports. This advertisement has not loaded yet, but your article continues below. Economists have said price inflation from tariffs is not yet being felt in the U.S. but believe it's inevitable. 'Trump's tariff madness adds a great deal to the risks of a recession,' said Steven Hanke, professor of applied economics at Johns Hopkins University who served on President Ronald Reagan's Council of Economic Advisors. 'With tariffs, Americans are going to be paying a big new beautiful sales tax on goods and services imported into the U.S., and taxes slow things down. Taxes don't stimulate.' It is surprising that higher U.S. prices haven't happened yet, said Jonathan Gruber, chairman of the economics department at the Massachusetts Institute of Technology. But he explained that it's likely a reflection of the duration of contracts and the fact that import sellers haven't yet put up prices — 'because they were hoping it wouldn't be real, like they'd wake up from this nightmare.' This advertisement has not loaded yet, but your article continues below. 'I think we start to see the effect on prices by the end of the year,' said Gruber. The trouble for Canada, however, is that the Canadian economy is starting from a much weaker position, with higher unemployment, lower consumer confidence, and a slowing GDP, on top of the trade tensions. So, trying to wait things out for the U.S. to feel the pinch will be even more painful for Canadians. And any American downturn will also reverberate north. 'As Uncle Sam goes, so goes Canada,' said Hanke. Gruber agrees with that, but with a caveat. 'It's all bad in the short run and good in the long run,' he says. He believes the U.S. is 'weak and getting weaker' and that Canada should start taking advantage of how the U.S. is making opportunities for other countries to invest in themselves. This advertisement has not loaded yet, but your article continues below. 'We're not investing in our future. We're killing our education. We're killing our research. We're not allowing in immigrants,' he said, explaining the weakening of the U.S. economy. 'We're basically setting the stage for long-run economic slower growth.' Meanwhile, China is doubling down on investment, research and other longer-term policies. 'Canada and other countries need to do the same,' Gruber said. And as for when a backlash could lead to a reversal in the U.S., Gruber points to two factors. 'It's got to be high inflation, and Trump's opponents need to make sure that the voters understand that's Trump's fault.' National Post tmoran@ Read More Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark and sign up for our newsletters here. News News Tennis Columnists Vancouver Canucks
The Province
an hour ago
- The Province
U.S. trade frameworks create 'shifting landscape' as B.C. looks to cultivate LNG markets
The U.S. is also willing to 'simply use their influence to bully trade partners into beneficial trade deals on energy,' says one observer. At the same time Premier David Eby was touting B.C.'s potential to export liquefied natural gas to Asia, U.S. President Donald Trump was unveiling his county's trade framework agreement with South Korea. Here, Eby tours the control room for the LNG Canada plant in Kitimat. Photo by Government of B.C. At the same time Premier David Eby was touting B.C.'s potential to export liquefied natural gas to Asia, U.S. President Donald Trump was unveiling his county's trade framework agreement with South Korea, which included a commitment to purchase US$100 billion of American LNG. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Exclusive articles by top sports columnists Patrick Johnston, Ben Kuzma, J.J. Abrams and others. Plus, Canucks Report, Sports and Headline News newsletters and events. Unlimited online access to The Province and 15 news sites with one account. The Province ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles and comics, including the New York Times Crossword. Support local journalism. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Exclusive articles by top sports columnists Patrick Johnston, Ben Kuzma, J.J. Abrams and others. Plus, Canucks Report, Sports and Headline News newsletters and events. Unlimited online access to The Province and 15 news sites with one account. The Province ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles and comics, including the New York Times Crossword. Support local journalism. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Tying energy to easing up on tariff threats has become a common theme in Trump's attempt to reorder the U.S. trading landscape, either with purchase commitments or contributions to American energy infrastructure, an element in a framework reached with Japan. Such agreements create a 'shifting landscape' for the LNG market that Canada will have to navigate with partners apparently willing to pay premiums for American energy in exchange for their 'strategic partnership' with the U.S., said University of B.C. trade economist Werner Antweiler. Eby's Asia trade mission, mere weeks before the U.S. deals were announced, sought to cultivate B.C.'s trade relationship with both countries, and he left sounding assured about the province's potential. Stay on top of the latest real estate news and home design trends. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. Eby spoke about meetings B.C. representatives had with LNG Canada's key partners: the Korean gas utility KOGAS, Mitsubishi in Japan and Malaysia's Petronas, where executives 'underlined how important it was to them that this project was able to be reliable.' However, Antweiler, chair in international trade policy at UBC's Sauder School of Business, noted that the U.S. is also willing to 'simply use their influence to bully trade partners into beneficial trade deals on energy. David Eby has spoken about meetings B.C. representatives had with LNG Canada's key partners: the Korean gas utility KOGAS, pictured here, Mitsubishi in Japan and Malaysia's Petronas. However, the U.S. is also willing to 'simply use their influence to bully trade partners into beneficial trade deals on energy,' says one observer. Photo by SeongJoon Cho / Bloomberg 'Some have called it a protection racket,' Antweiler said. 'Korea buys U.S. energy at a premium or preferentially, and in turn U.S. provides military protection, rather than for the U.S.'s own geostrategic benefit.' LNG's buyers — major utility firms — purchase fuel on long-term contracts and Antweiler said it is likely the South Korea deal will result in a 'reshuffling market share,' with new U.S. imports replacing its expiring contracts with Qatari LNG suppliers. This advertisement has not loaded yet, but your article continues below. 'Their overall demand for LNG is not increasing much and is down from a peak in 2021,' Antweiler said. In rough estimate, he estimated it could increase the U.S. share of South Korea's market to about one third from five per cent now. In the case of Japan, the notice from Trump's White House dated July 23, said the sides are 'exploring a new offtake agreement for Alaskan LNG,' with a proposal that is in its early stages, but which is vying for the same market share as B.C. 'Japan's commitment to Alaskan LNG may be looked at through the perspective of energy security too,' Antweiler said. Premier David Eby (right) watches as a LNG carrier manoeuvres in Kitimat. LNG Canada, a consortium of five partners including Shell, Malaysian state-owned Petronas, PetroChina, Mitsubishi Corp. and KOGAS, is contemplating a $30-billion addition to its Kitimat plant that would nearly double its capacity to 26 million tonnes of LNG per year from 14 million tonnes per year now. Photo by Government of B.C. / Government of B.C. Energy Minister Adrian Dix argued that the LNG projects in the works 'have real advantages over other projects, say the Alaska project, and everything else.' This advertisement has not loaded yet, but your article continues below. 'Obviously we only control what we control, the provincial and the federal government,' Dix said. However, he added that the provincial and federal governments are 'working closely' with LNG Canada related to the company's yet-to-be approved Phase 2. LNG Canada, a consortium of five partners including Shell, Malaysian state-owned Petronas, PetroChina, Mitsubishi Corp. and KOGAS, is contemplating a $30-billion addition to its Kitimat plant that would nearly double its capacity to 26 million tonnes of LNG per year from 14 million tonnes per year now. A spokesperson for LNG Canada said the company itself isn't involved in sales: its joint-venture partners determine where the product is delivered and sold. This advertisement has not loaded yet, but your article continues below. Dix, however, said 'we feel that our (LNG Canada Phase 2) is a really outstanding project and we're optimistic about it. But at the same time, it's not entirely our decision. It is a reason why you want to settle all the issues so that the sooner they move forward, the better it is for B.C. and for everybody.' Dix added that before now, B.C. didn't have the option of offshore exports for natural gas, the province's biggest export commodity, worth $16 billion in trade in 2024. And the U.S. trade deals underline the importance for B.C. to diversify. 'If you ask me, do I worry? I worry every day about everything,' Dix said. 'Because there's a lot at stake for B.C. and we've got to continue to meet our economic goals, we've got to continue to create more wealth and energy sovereignty.' Antweiler said Canada might need to turn to 'countries that are not constrained by trade deals with the United States.' 'It's all a matter of reshuffling trade directions, but in the end the LNG market is global,' he added. 'World supply and world demand must be clear, no matter what the U.S. does.' depenner@ Read More News News Tennis News News
Winnipeg Free Press
4 hours ago
- Winnipeg Free Press
Texas Democrats leave the state to block vote on redrawn House map backed by Trump
Texas Democrats are leaving the state in an attempt to prevent the state House from holding a vote Monday on new congressional maps that Republicans hope will net them several additional U.S. House seats in the 2026 midterm elections. The dramatic move Sunday could expose Democrats to fines and other penalties — with the state's attorney general having previously threatened to arrest them if they took such an action. Refusing to attend legislative session is a civil violation, however, so Democrats legally could not be jailed and it's unclear who has the power to carry out the warrants. Democrats have cast the decision to leave the state as a last-ditch effort to stop Republicans who hold full control of the Texas government from pushing through a rare mid-decade redrawing of the congressional map at the direction of President Donald Trump. 'This is not a decision we make lightly, but it is one we make with absolute moral clarity,' said Gene Wu, chair of the House Democratic Caucus, in a statement. To conduct official business, at least 100 members of the 150-member Texas House must be present. Democrats hold 62 of the seats in the majority-Republican chamber. At least 51 Democratic members are leaving the state, said Josh Rush Nisenson, spokesperson for the House Democratic Caucus. 'Apathy is complicity, and we will not be complicit in the silencing of hard-working communities who have spent decades fighting for the power that Trump wants to steal,' he said. The move marks the second time in four years that Texas Democrats have fled the state to block a vote. In 2021, a 38-day standoff took place when Democrats left for Washington in opposition to new voting restrictions. Republican Gov. Greg Abbott called a special session of the Legislature that started last month to take up the redistricting effort, as well as to respond to flooding in Texas Hill Country that killed at least 135 people in July. Trump has urged Texas Republicans to redraw the map to help the party net a handful of seats in the midterms next year. Texas Republicans last week unveiled their planned new U.S. House map that would create five new Republican-leaning seats. Republicans currently hold 25 of the state's 38 seats. By leaving the state, Democrats are looking to block Republicans from the needed quorum to hold votes on the map set for Monday. The Texas House has rules to fine lawmakers $500 each day they break a quorum. GOP Attorney General Ken Paxton has said previously that if Democrats break quorum, 'they should be found and arrested no matter where they go.' 'My office stands ready to assist local, state, and federal authorities in hunting down and compelling the attendance of anyone who abandons their office and their constituents for cheap political theater,' Paxton said on the social media platform X on July 15. A large chunk of the Texas Democrats are heading to Illinois, where Democratic Gov. JB Pritzker had been in quiet talks with them for weeks about offering support if they chose to leave the state to break quorum. Pritzker, a potential 2028 presidential contender, has been one of Trump's most outspoken critics during his second term. Last week, Pritzker hosted several Texas Democrats in Illinois to publicly oppose the redistricting effort. California Gov. Gavin Newsom held a similar event in his own state. Pritzker also met privately with Texas Democratic Chair Kendall Scudder in June to begin planning for the possibility that lawmakers would depart for Illinois if they did decide to break quorum to block the map, according to a source with direct knowledge who requested anonymity to discuss private conversations. Now, with Texas Democrats holed up in Illinois and blocking the Trump-backed congressional map, the stage may be set for a high-profile showdown between Pritzker and the president. Trump is looking to avoid a repeat of his first term, when Democrats flipped the House just two years into his presidency, and hopes the new Texas map will aid that effort. Trump officials have also looked at redrawing lines in other states, such as Missouri, according to a person familiar with conversations but unauthorized to speak publicly about them.
