Big
oil and coal still provide for most all of the global
energy needs. As consumers, we have been addicted
to both: oil for transportation and coal for electric
generation. For the past century, their cost of
production has remained less than the startup costs
for renewable energy.
Now,
several of the largest oil and gas companies have
become leaders in the solar (Shell and BP) and wind
industries (GE). They have invested heavily as market
share grows into viable business opportunities.
In fact, the solar and wind sectors have grown at
20-30% over the past 5 years.
These
firms are aware that fossil fuels are a depleting
resource, and expanding into the renewable sector
make economic sense. When total life cycle accounting
is used (including all externalities), renewable
energy sources are more cost effective.
