BP CEO says oil and gas giant is a ‘greening company’
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On Tuesday February 2, 2021, a BP logo was displayed in London.
Chris J. Ratcliffe. Bloomberg | Bloomberg | Getty Images
Chief Executive Officer of BPThe oil and gas company is a “greening” one, which plans for a zero-carbon future but is still carbon-intensive.
These comments, which come at a moment when several governments declare a climate emergency, are sure to cause eyebrows and highlight the immense task ahead for energy professionals in the coming years.
Bernard Looney made the remarks during a Cairo panel discussion. CNBC’s Hadley Gamble hosted a moderated discussion on Egypt. He spoke about energy transition issues.
Looney stated three requirements for the pivot to renewable energies: The energy must be clean, reliable, affordable, and it should be cheaper. Looney said the issue was complicated.
Looney declared Monday, “What we have to do is create a world that does a few things.” Looney stated that number one is the reduction of emissions. This objective does not include ideological views about “hydrocarbons” or other issues.
“Our goal is to reduce carbon emissions. If burning natural gas instead of coal lowers emission, then that’s a step we need to take.”
Looney emphasized his point by saying hydrocarbons “are such a large part of today’s energy system that it was difficult to envision how this could change overnight.
He stated, “If that energy is to be affordable, because we desire this energy transition loop, then we need to invest in hydrocarbons” and added that the company was doing this.
Looney said that “the third thing we have to do is support ‘greening companies”. He was speaking about a term his firm has used before. “And a greening company is a company who is carbon-intensive today like BP — some people would call it a heavy polluting company. Carbon intensive today, but has plans for net-zero tomorrow — not tomorrow, but in the future.”
Looney stated, “Companies like this need to be held responsible, challenged, made transparent and accountable.”
They must be supported and encouraged because it is impossible to scale up enough green businesses in this world quickly enough to fix the problem.
For net-zero you will need businesses that produce carbon, which is what we call “a greening business.”
BP, a large producer of oil and natural gas, stated that its goal is to become a netzero company before 2050. It is one of the many large companies that has pledged to be net-zero in recent years.
Although such promises are attractive, their actual achievement is difficult and fraught with logistical and financial hurdles. Sometimes, the devil is in details.
Greenwashing charges
Looney’s comment comes at a moment when greenwashing has become a hot topic. This is often attributed to multinational corporations with large carbon footprints..
Greenpeace UK is an environmental group that describes greenwashing as “PR” to make a product or company appear eco-friendly, without actually reducing its environmental impacts.
Looney was asked by a reporter if greenwashing allegations had any foundation. Looney replied that he could only speak for himself. Look at the last 24 months of our company history. We’ve done the most significant restructuring to ensure that the transition is possible.
He stated that the company has a “new strategy” and an allocation of capital to allow for a smooth transition. Nearly 10,000 workers lost their jobs so we had to cut the dividend by half. They are not consistent with greenwashing companies, I doubt anyone would claim that.
These are the actions of a company who doesn’t always have the right answers and makes mistakes. We are determined to see it through and help make a positive difference.
It is well-known that fossil fuels have a significant impact on the environment. According to the United Nations, fossil fuels have had a significant impact on the environment since 19ThJahrhundert, the “main driver of climate changes, has been human activity, in particular due to fossil fuels, such as coal, oil, and gas.”
Yet, despite all this, oil and gas continue to be a key part of the world’s energy mix.
Last week BP reported a massive upswing in full-year net profitIts highest point in eight years was achieved thanks to soaring commodity prices.
For 2021, the underlying replacement profit profit of British energy giants was $12.8 billion. This is a proxy to net profit. This compares to a net loss in 2021 of $5.7 billion.
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