Some five years ago when oil prices were still low, a number of petroleum companies began to turn their attention to promising substitutes for fossil fuels. Today, the industry is pursuing alternative energy at a pace unmatched since the energy crisis of the 1970s.
BP and Shell predict renewable sources may satisfy up to 50 percent of the world’s energy needs by the year 2050.
In some cases, deregulation is driving the alternative energy industry. When California’s power market was restructured in 1998, the city of Santa Monica shifted to geothermal and solar power. While energy costs rose 5 percent, the city was willing to pay the environmental premium.
Source: Thaddeus Herrick, Oil Companies Seek to Develop Energy Options, Wall Street Journal, October 4, 2000.
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http://interactive.wsj.com/archive/retrieve/SB970613469860964517.htm
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http://www.ncpa.org/hotlines/energy/rehot.html
