....................................................................................................................................................................................... Jost Hamschmidt, University of St. Gallen (IWÖ-HSG) October 1998 Ecological oriented structural change in the Oil Industries ? The role of Photovoltaics for SHELL and BP Dipl.-oec. Jost Hamschmidt Institute for Economy and the Environment (University of St. Gallen), Tigerbergstrasse 2, CH - 9000 St. Gallen Phone: 0041-71-224 2595, Fax: 0041-71-224 2722, Email: [email protected]Abstract: As the real effects of environmental change dawn on society, businesses are becoming more and more concerned about the impacts of their core activities on the environment. Transformed business strategies might be an approach of tackling the challenges. The paper examines starting points of transformations by highlighting the role of photovoltaics for selected multinational oil and gas suppliers (Shell, British Petroleum). Therefore it follows a three step methodology: 1. Current developments and perspectives of the photovoltaic industries are described in the context of global energy supply. 2. The activities of Shell and BP in the Photovoltaic market are described and compared with the core businesses of the examined MNCs. (history, turnover and prospects of the photovoltaic business Shell and BP, Connex to the general business principles, MNC Statements concerning C02 emission reductions and commitment to Sustainable Development, strategic meaning of photovoltaics for the examined companies) 3. A set of interpretations will be developed in respect to possible evaluations for the engagement of the oil and gas industries in renewable energies. (Indicators for defensive, pragmatic and proactive environmental business policies, contribution to structural change etc.) The paper carries out the prospects of photovoltaic activities on a possible ecological restructuring of the oil and gas industries. It gives a glance at current policies of the investigated MNCs and analyses future prospects of structural change in the oil and gas industries. Partnership and Leadership: Building Alliances for a Sustainable Future November 15-18, 1998 Seventh International Conference of Greening of Industry Network Rome
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....................................................................................................................................................................................... Jost Hamschmidt, University of St. Gallen (IWÖ-HSG) October 1998
Ecological oriented structural change in the Oil Industries ? The role of Photovoltaics for SHELL and BP
Dipl.-oec. Jost Hamschmidt
Institute for Economy and the Environment (University of St. Gallen), Tigerbergstrasse 2, CH - 9000 St. Gallen
As the real effects of environmental change dawn on society, businesses are becoming more and more concerned about the impacts of their core
activities on the environment. Transformed business strategies might be an approach of tackling the challenges. The paper examines starting points of
transformations by highlighting the role of photovoltaics for selected multinational oil and gas suppliers (Shell, British Petroleum). Therefore it follows
a three step methodology:
1. Current developments and perspectives of the photovoltaic industries are described in the context of global energy supply.
2. The activities of Shell and BP in the Photovoltaic market are described and compared with the core businesses of the examined MNCs. (history,
turnover and prospects of the photovoltaic business Shell and BP, Connex to the general business principles, MNC Statements concerning C02
emission reductions and commitment to Sustainable Development, strategic meaning of photovoltaics for the examined companies)
3. A set of interpretations will be developed in respect to possible evaluations for the engagement of the oil and gas industries in renewable energies.
(Indicators for defensive, pragmatic and proactive environmental business policies, contribution to structural change etc.)
The paper carries out the prospects of photovoltaic activities on a possible ecological restructuring of the oil and gas industries. It gives a glance at
current policies of the investigated MNCs and analyses future prospects of structural change in the oil and gas industries.
Partnership and Leadership: Building Alliances for a Sustainable FutureNovember 15-18, 1998 Seventh International Conference of Greening of Industry Network Rome
....................................................................................................................................................................................... Jost Hamschmidt, University of St. Gallen (IWÖ-HSG) October 1998
Ecological oriented structural change in the Oil Industries ? The role of Photovoltaics for SHELL and BP
CHAPTER I CHAPTER II CHAPTER III CHAPTER IV
Intr
oduc
tion
Significance and Market Relevance of Photovoltaics
Option for Climate Policy Energetic Potential
Economic Policy - Market Potential
The role of solar power
Case Studies
Case Study SHELL
Case Study BRITISH PETROLEUM
Conclusions
Indicators of Ecological structural change
EVALUATION
....................................................................................................................................................................................... Jost Hamschmidt, University of St. Gallen (IWÖ-HSG) October 1998
Solar energy – a climate policy Option ? - A hypothetical calculation
Ø Electric Power Sales in Germany 1997 454 bn. KWh (VDEW 1998).
Ø Average Performance of a modern Solar panel per year on 1 m2 ca. 100 KWh/a.
(e.g. Module BP SEP 750: 120 KWh/a) Ø Hypothetical needed area for total substitution by solar power (rough estimate):
a = (454 * 109 KWh) / 100 KWh/sqm) = 4540 km2
Ø Corresponds to 1,3 % of the area of the FRG
(356 910 qkm) Source: own calculations (data: VDEW 1998, BP 1998),
....................................................................................................................................................................................... Jost Hamschmidt, University of St. Gallen (IWÖ-HSG) October 1998
Scenario Market Growth and Cost-Decline of Photovoltaics
....................................................................................................................................................................................... Jost Hamschmidt, University of St. Gallen (IWÖ-HSG) October 1998
Design Case Studies
General Information Shell General Information BP
Solardivision Shell Solardivision BP
Internetsite/PR Shell Internetsite/PR BP
Lobbying Shell Lobbying BP
Evaluation
Policy framework of ecological Restructuring in the Oil industries
....................................................................................................................................................................................... Jost Hamschmidt, University of St. Gallen (IWÖ-HSG) October 1998
....................................................................................................................................................................................... Jost Hamschmidt, University of St. Gallen (IWÖ-HSG) October 1998
Basic information Shell
Ø Shell Solar Netherlands:
Manufacturing Capacity: 5 MWp/y (End 1997) Ø Strategic target: 10 % share Global market until 2005, Ø Long term investment, 500 Mio US-Dollar until 2002 Ø New Projects:
Manufacturing site in Gelsenkirchen/Germany (with Pilkington Solar International) Investments 30 Mio. DM, 25 Mwp/y
Sources: van der Veer 1997, Watts 1997
....................................................................................................................................................................................... Jost Hamschmidt, University of St. Gallen (IWÖ-HSG) October 1998
Basic Information BP Solar
Ø Activities:
ca. 100 Mio. $ Turnover worldwide. MWp Production/year (End 1997)
Ø (Current) Stratetegic target: 1 bn. $ Turnover worldwide until 2007 Ø Long term investment
Ø New Projects: Manufacturing Site Fairfield (Ca), 1998 10 Mwp/y
....................................................................................................................................................................................... Jost Hamschmidt, University of St. Gallen (IWÖ-HSG) October 1998
Business policies: Stages of Structural Change - Development of Options
Enforcing environ-mental Institutions/
Framework Proactive Strategy
Symbolic Actions Communications,
PR Reactive Strategy
Ecological learning processes
Ecol
ogic
al E
ffect
ivity
Ecological Market Diversification
Adaptation
.................................................................................................................................... Jost Hamschmidt, University of St. Gallen (IWÖ-HSG) October 1998
Factors of Influence for an Ecological Transformation in the Oil Industry
source: Hamschmidt (1998) and Dylllick/Belz/Schneidewind (1997) Literature:
Learning processes on different Levels Negation - Perception - Acceptance - Tackling
of ecological Problems
Ecological Problems e.g.
- Rising CO2 Concentration in the Atmosphere - Frequency und Volatility of Environmental Catastrophies
– Climate Change
Transformation by External Systems
Public Policy Market
• Discussion role of MNC's
• "Schwarze Peter" Risk
• New Emmission Reduction targets
• International Treaties
• Liberalisation of Energy markets
• New Markets • Changing
Incentives
Influence on Energymix and Energy Demand
fossile Renewable Energies Energies
today Medium term Long-term
.................................................................................................................................... Jost Hamschmidt, University of St. Gallen (IWÖ-HSG) October 1998
ALLNOCH, NORBERT: Zur Lage der Wind- und Solarenergienutzung in Deutschland. Herbstgutachten 1997/98. In: Energiewirtschaftliche Tagesfragen, H. 10, S. 612-617 AXT, PHILIPP G. (ED.) / HÖFER, THOMAS (COED.): Ökologische Gesellschaftsvisionen : kritische Gedanken am Ende des Jahrtausends, Basel, 1996 BROWNE, JOHN: GROUP CHIEF EXECUTIVE, BP: Climate Change Speech, Stanford Graduate School of Business, 19 May 1997, (via http://www.bp.com/speech_051997.html, Download 15.02.1998) Browne, John: Global Climate Change - The Policy Options Rede vor dem Berliner Abgeordnetenhaus, 30.09.1997 (via http://www.bp.com/sp_berlin.html, Download 15.02.1998) BROWNE, JOHN: Public Pressure and Strategic Choice, Speech at the World Economic Forum, Davos, Switzerland, 2nd February 1998 (via http://www.bp.com/sp_020298.html, Download 15.02.1998) BP SOLAR (ED.): Der Solar Ratgeber, Hamburg 1997 BRAUCH, HANS GÜNTHER (ED.): Energiepolitik, Berlin, Heidelberg, New York 1997 DEUTSCHE SHELL AG (ED.): Fakten und Argumente - Aktuelle Themen aus der Mineralölwirtschaft. Hamburg, November 1997, DEUTSCHE SHELL AG (ED.): Perspektiven für Erdöl und Erdgas im 21. Jahrhundert, Hamburg 1996 DEUTSCHE SHELL AG (ED.): Shell (Ed.): Erneuerbare Energie: Shell setzt auf Solarenergie und Biomasse, Hamburg 1997 DEUTSCHE SHELL AG (ED.): Presseerklärungen Nr. 37/1997, Nr. 36/1997 DYLLICK, THOMAS ET AL.: Ökologie und Wettbewerbsfähigkeit, Zürich 1997 FRANKEL, CARL: „BP’s Billion Dollar Baby „ in: Tomorrow 6/97, November 1997, p. 22 GLOBAL CLIMATE COALITION: Mission Statement (via http://www.worldcorp.com/dc-online/gcc/gccdocs.html, Download 10.02.1998) HERKSTRÖTER, CORNELIUS: Dilemmata multinationaler Unternehmen, Hamburg 1997 LEHMANN, HARRY/REETZ, TORSTEN: Zukunftsenergien - Strategien einer neuen Energiepolitik, Berlin 1995 MEAD, GARY: "Crude Oil prices touch 46 month low" in: Financial Times, 13.02.1998, p.32 MINSCH, JÜRG ET AL.: Mut zum ökologischen Umbau - Innovationsstrategien für Unternehmen, Politik und Akteurnetze, Basel 1996 MOODY-STUART, MARK: "A force for progress - the Royal Dutch/Shell Group in the 21st century" Speech at the CERA Conference, Houston, February 10, 1998 (via http://www.shell.com/h/h4_24.html, Download 15. Februar 1998) O.V.: "Solarnation Deutschland" in: Umwelt und kommunale oekologische Briefe Nr. 24, 26.11.1997, S. 6 PONTENAGEL, IRM: Das Potential erneuerbarer Energien in de Europäischen Union, Berlin Heidelberg 1995 SCHMIDT-BLEEK, FRIEDRICH: Wieviel Umwelt braucht der Mensch? MIPS - Das Mass für ökologisches Wirtschaften, Basel 1994 SHELL SOLAR ENERGY B.V. (ED.): Connnecting you to the sun, Helmond o.J.
.................................................................................................................................... Jost Hamschmidt, University of St. Gallen (IWÖ-HSG) October 1998
SUTHERLAND, PETER: Oil and Gas in the Global Economy, Speech held at the Insitute of Petroleum´s Conference on „Oil & Gas after 2000 - Realignment & Restructuring for the New Milleneum (via http://www.bp.com/sp_160298.html, Download 18.02.1998) SYKES, RICHARD: Eco-efficiency in the Exploration and Production Business, Paper presented at the AEEC-Delta Eco-Efficiency Workshop, Cairo, February, 14.-15. 1997. (via http://www.wbcsd.ch/Speechs/Eco-efficiency/shell%20Speech-Eco-eff.htlm, Download 15.02.1998) ULRICH, PETER: Integrative Wirtschaftsethik - Grundlagen einer lebensdienlichen Ökonomie, Berlin, Stuttgart, Wien 1997 VON WEIZSÄCKER, ERNST ULRICH/LOVINS, AMORY: Faktor vier. Doppelter Wohlstand - halbierter Naturverbrauch, München 1995 WATTS, PHIL: "Contributing to sustainable development", Speech at the "Energy and the Environment" Conference, Caracas, Venezuela 18 November 1997 (via http://www.shell.com/h/sustain/text/sustain.htm, Download 15.02.1998) WÜSTENHAGEN, ROLF: Greening Goliaths versus Multiplying Davids: Pfade einer Coevolution ökologischer Massenmärkte und nachhaltiger Nischen, IWÖ - Diskussionsbeitrag Nr. 57, St. Gallen 1998
