Shell Linked to Takeover of Vestas

Oil does not yet compete with wind energy because wind turbines produce electricity, while oil is used mostly for transportation, with the unusuable dregs used for electricity generation. It may change in the future, if wind energy is used to produce hydrogen for use in vehicles or for charging electric vehicles.

For renewable energy companies, being acquired by a larger company has advantages, like more economies of scale, a greater ability to weather a crisis and being able to operate at a loss when just starting out (not a problem for Vestas). However, since the business is not as dependent on the income produced through renewable energy, they may be more likely to sell the company or discontinue production altogether at the first downturn for the company or the industry. Also, if a company that is not committed to renewable energy has the chance to slightly increase profits by switching to a less environmentally friendly technology, they will take it

I feel the big oil companies have too much power now. Why should they be allowed to control other alternative energy and manipulate the prices in that industry.

The jury remains "out" on whether acquisitions of renewable technologies by the major oil companies is wise, or perhaps a conflict of interest. For offshore companies, we cannot control this, but here in the U.S., we sure can. It makes sense for petroleum-based companies to horizontally integrate into renewables merely to give themselves a 'future' when oil-producing nations peak worldwide and extraction of oil from marginal places exceeds the economic ability of consumers to buy refined products. But if the 'majors' acquire renewable companies to restrict production of 'competitive' technologies merely to sustain high oil prices (and record profits), or to set unjustifiable high prices for renewable energy, then the anti-trust provisions of our laws should be applied vigorously to 'reach out and touch someone' -- BIG TIME !

Funny how they sold Solar and buy Wind. It seems to me that they are playng strategic games and not yet 100% decided to "participate" with all their might in the alternative energies.
Time will tell, and maybe someone will show his hand faster.
Thank you

Another investment into renewable energy technology by a major oil company such as Shell would be a step in the right direction. Hopefully someone with cash will take another look at CSP, Ocean and Geothermal energy technologies as well, to jumpstart those valuable resources into new renewable production development which will compliment wind energy and increase grid stability. JerryCheesman@yahoo.com