BP, in a Reversal, Says It Will Produce More Oil and Gas
Excerpt from this story from the New York Times:
BP’s chief executive, Bernard Looney, said on Tuesday that the company would pare back its plans to reduce oil and gas production in the coming years, a move that would result in higher-than-expected carbon emissions.
The shift appeared to be a response to changes in the geopolitical environment, at least partly caused by the war in Ukraine, which has sent oil and, especially, natural gas prices soaring.
The comments came as BP company joined other big oil companies in reporting record annual profit: $27.7 billion for 2022, almost double the adjusted profit of 2021.
With oil and gas so profitable, BP now says it will increase investment in the production of fossil fuels by about $1 billion a year above previous plans for the rest of the decade. It will also increase spending by a similar amount on low-carbon businesses.
Mr. Looney said in an interview that much had changed over the three years since he made what were considered industry-leading commitments to cut back on oil and gas output and reduce emissions.
“The conversation three or four years ago was somewhat singular around cleaner energy, lower-carbon energy,” he said. “Today there is much more conversation about energy security, energy affordability.”
For a smooth transition to cleaner energy, “you need to invest in today’s energy system,” which is still primarily based on oil and gas, he said.
Analysts say Mr. Looney’s shift may signal a major change at BP and, perhaps, other European oil companies. In recent years, these organizations have restrained investment and focused on keeping shareholders happy with large dividends and share buybacks.