Oil Companies Need to Explore New Ways to Produce Alternate Energy in the Long Run

To compete with various major oil companies, British Petroleum has come up with strategies to limit investing in their alternative energy division. Although, decreasing their works in certain departments doesn’t stop the third largest global energy company from taking sensible steps in other areas! We need to acknowledge, even though we do not completely agree; it is important to look at the reason behind their decision to not connect with this enterprise for now! There is a need for analysing this phenomenon. The various departments which comprise Alternative energy are more or less connected to the oil industry. Until the uncertainty of these directives turn into fixed laws, the companies remain a bit sceptical to get involved, especially as these alternative sources are not-for-profit venture. The ethanol sector can be credited as the first one to take sensible action in this department. It has used ethanol instead of MTBE or Methyl-Tertiary Butyl Ether which is a gasoline additive produced from isobutylene and methanol using oil as a primary substance. These are intelligent measures opted by companies like Marathon & Andersons and Valero along with BP. These oil companies have to purchase ethanol for a price heedless of the liabilities for their problems faced during trade! They could rather opt for sugar-cane which would thereby curtail production cost of ethanol, which although being bio-fuel itself, isn't created in an eco-friendly manner. Profitability can lead to wide prospects for the growth of 'cellulosic ethanol' in the future. Focus will shift to new issues revolving around the progress of cultivation and logistic model with the help of raw material. There are plenty of raw materials available which include grass, paper and wood, etc. Although the process of farming and production of bio-mass falls into the class of a non oil dependent substance, all the remaining aspects of conversion and circulation are totally the opposite. Other important alternatives are diesel and natural gas. These provide tremendous scope for the oil companies to expand their business in the segment of alternative fuel power instead of crude oil. The trade, strategies and the entire process of alternative energy generation is an extremely diverse organization in comparison to oil production. In some way, it can be equipolated with coal-fired and nuclear stations from the context of backup and grid. Economy and commerce plays a pivotal role as the prices of crude-oil are quite low, so the age old techniques and resolution are needed to be thought over. Hence, large oil producing companies need to invest their time and money at ideal opportunities, and especially at which they already excel in.