New BP CEO to 'Reinvent' Oil Major as Deeper

The Dubai company that uses fast food waste for good

BP announced today that it aims to reduce carbon emissions from its operations and the oil and gas it extracts to net-zero by 2050, as well as to reduce the carbon intensity of its sold products by 50 percent.

"We're starting with a destination,"' he said.

To do so, BP will need to reorganise and divide its operations into groups but it vowed that it was committed to performing as it has while at the same time transforming into something better for the future. We need a rapid transition to net zero.

BP, which produced around 2.64 million barrels of oil equivalent per day in 2019, said it would cut emissions to net zero from some 415 million tonnes of Carbon dioxide equivalent a year. While peers such as Royal Dutch Shell, Total and Equinor have responded to investor pressure by adopting targets for emissions curbs, none has promised to zero out all emissions from the fossil fuels they pump from the ground.

While the information presented thus far is broad, the firm's proposed organisational reshuffle and sweeping commitments promise further clarity and detail to come on how these goals will be met, namely in the methods BP will undertake to reach net zero. Bob Ward, policy and communications director at the Grantham Research Institute on Climate Change and the Environment, says BP's announcement will certainly put added pressure on other oil companies. "When will they stop wasting billions on drilling for new oil and gas we can't burn?", Charlie Kronick, Oil Advisor from Greenpeace UK, said.

It will seek to ensure that the production of oil and gas does not emit carbon, while it will also start measuring methane emissions at all its gas processing facilities by 2023.

Mr Looney mentioned the demonstration during his speech on Wednesday and said it was "uncomfortable" for BP to be "out of step" with public opinion. "We do not have those for you right now", but the company will announce more measures in September, he said.

Stephanie Pfeifer, a member of the global Climate Action 100+ Steering Committee and CEO of the Institutional Investors Group on Climate Change, welcomed BP's plan.

What has been made clear is BP's absolute net zero carbon target relating to every barrel it produces, from the well to the petrol station. He singled out climate scientists by name. It nearly had the feel of a chat show at times, with Looney at one point asking a young person in the audience how he had felt representing BP. He said society was going to have to invest trillions of dollars "in replumbing and rewiring the world's energy system" and he wanted BP to be part of that change.

This is not the first time BP has tried to reinvent itself. For example, its heft could bring scale to low-carbon projects that might have only dreamed of such investment.

The difficulty is how to make sure that falls in line with making money.

"Building on the positive engagement with BP...investors will continue to look for progress from the company in addressing climate change". In a statement, the company's new chief said the focus will be on "high-quality barrels" that come with high returns, but not necessarily the big production volumes of the past.

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