Managerial acct. energy resources paper

Managerial acct. energy resources paper - Raymond Gonzalez...

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Raymond Gonzalez 1 As the new vice president of Beyond Petroleum’s (BP) American division, (in the North East sector) I would like to propose a multi-million dollar project in favor of a promising new type of fuel. Before you immediately reject this proposal due to its high initial costs, I would recommend that you realize this new fuel source could be the start of a new market that would be led by BP. If we were to take the path toward this new type of energy, we would not only have the leg up on our competitors but we would set the standards for all other corporations that follow in our footsteps. This new type of fuel can be the beginning of an entirely new market; one which we would control while shaping our image as the saviors of earth’s natural resources. If we are ever to act upon a new source of energy, away from the old petroleum based fuels, now would be the time to act. As stated by a very prestigious scientist who happens to be a big advocator of replacing current fossil fuels “This is the first strategy for displacing the black stuff not incrementally but radically, not at a cost to the economy but at a net gain” (Lovins). Amory Lovins and his teams of scientists have proven that substituting an alternate source of fuel for oil, such as biobutanol will eventual yield to increased profits for BP. For your understanding, biobutanol is a type of biofuel, (biodiesel) which is formed from plant and animal oils. This type of fuel is not only economically friendlier on the environment, but it will also be cheaper to produce and transport than oil in the future. In my opinion, BP can not afford to miss the opportunity of obtaining a head start what could be one of the most profitable markets in the future. As Lovins states “America’s shift from oil can be led profitably by business at a net savings to the
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Managerial acct. energy resources paper - Raymond Gonzalez...

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