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The global oil and gas market began to weaken before the COVID-19 outbreak crashed the economy, providing bottom line motivation for BP and other industry leaders to satisfy investors by shedding assets. That maneuvering has continued into 2020, and BP illustrates why renewable energy is poised to fill the vacuum.BP quits petrochemicals…
BP is among the oil and gas giants pivoting to renewable energy. In some ways it appears that the company is running ahead of schedule, even as the COVID-19 crisis continues to mount.
On Monday, for example, BP announced that it will sell practically all of its petrochemical business to the industry leader Ineos. The sale involves 14 plants in the U.S., Asia, and Europe. BP will retain just one facility in Germany, as part of a refinery operation.
BP describes the sale as the “next strategic step in reinventing BP.” It comes a year earlier than BP’s divestment plan calls for, though the actual transaction will not be finalized until the end of this year.
…but petrochemicals do not quit BP
Selling off an asset does not make it disappear, however. BP notes that global demand for plastics will continue to support the 14 petrochemical plants, particularly …
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