EENews:
Warren Buffett, the chairman and CEO of Berkshire Hathaway Inc., this weekend lamented the $10 billion investment he pumped into Occidental Petroleum Corp. last April and said he plans to invest more money into wind and solar power.
“If you’re an [Occidental] shareholder or any shareholder in any oil-producing company, you join me in having made a mistake,” he said, referring to negative oil prices late last month that happened as a result of the oversupplied U.S. oil market and collapsing demand (Energywire, April 21).
“It was attractive at oil prices that then prevailed,” Buffett said of Berkshire’s Occidental bet. “It doesn’t work, obviously, at $20 a barrel. It certainly doesn’t work [at] minus $37 a barrel.”
The famous investor predicted that “oil production is going to go down a lot in the next few years because it does not pay to drill.”
Buffett’s comments were made in Omaha, Neb., at the conglomerate’s annual shareholder meeting. The closely watched event — a largely online affair this year due to the coronavirus pandemic — stretched nearly 4 ½ hours. Climate change never came up.
Berkshire has a market capitalization of more than $433 billion and owns several electric and gas utilities and electric transmission and pipeline companies. Berkshire executives said Saturday they’re looking at boosting the company’s renewable energy portfolio.
“Infrastructure is continuing to change,” said Greg Abel, the executive chairman of Berkshire Hathaway Energy. “We’re ready for $100 billion of investment opportunities there.”
Abel told shareholders that Berkshire’s energy subsidiary has committed about $40 billion over the next decade to capital expenses. Half of that is for maintaining assets. The other half, he said, is dedicated to “incremental wind, incremental transmission that services the wind or other types of renewable, solar.”
“We’ve got a huge appetite,” Buffett added. “And the country needs it, the world needs it.”
Institute for Energy Economics and Financial Analysis:
While U.S. power generators continue to assess what the total implications could be of a decline in electricity demand caused by the economic impacts of the COVID-19 pandemic, those forecasting a shift to less carbon-intensive assets have not yet changed near-term plans to retire coal plants.
In 2019, U.S. power generators retired 13,863 MW of coal-fired generation, the highest amount of coal capacity retired since 2015 when new mercury regulations drove the retirement of 15,124 MW of coal-fired capacity, an S&P Global Market Intelligence analysis shows. As of April 17, generators had 9,038 MW worth of capacity slated for retirement in 2020 and another 23,010 MW of coal capacity set to retire between 2021 and the end of 2025.
Continue reading “Further Financial Flight from Fossil Fuels”