BP To Boost Oil And Gas Production, Abandon 2030 Goal
A report by Reuters said that BP “has abandoned a target to cut oil and gas output by 2030 as CEO Murray Auchincloss scales back the firm’s energy transition strategy to regain investor confidence.” The new strategic direction marks a noticeable shift away from the ambitious climate targets BP unveiled in 2020. BP had a goal to cut oil and gas production by 40% by 2030.
To its credit, BP has already cut emissions by more than 20% against its 2019 baseline, which was a goal it initially intended to hit by 2025. However, the recent shift in strategic direction could jeopardize BP’s stated goal to reduce emissions by 50% by 2030 from its 2019 baseline, especially because that goal was predicated on reducing oil and gas production.
BP has been making headlines for splashy oil and gas deals. On August 1, BP signed a memorandum of understanding (MoU) with the Government of the Republic of Iraq to negotiate a material integrated redevelopment program for the Kirkuk region, spanning oil and gas investment, power generation and solar, together with wider exploration activities.
On September 16, BP announced it would divest its US onshore wind business to focus on onshore renewables in Lightsource BP. BP Wind Energy has interests in ten operating onshore wind energy assets across seven US states, operating nine of them. The assets have a combined gross generating capacity of 1.7GW (1.3GW net to BP). All wind assets are grid-connected and are already providing power to a range of offtakers. The operated assets are controlled through a remote operating center in Houston.
In November 2023, BP announced its agreement to take full ownership of Lightsource BP, its solar power developer joint venture. On completion of this acquisition – anticipated before the end of the year, subject to regulatory approvals – BP intends to support Lightsource BP’s continued growth, and also extend its capabilities as a developer of utility-scale renewable power assets worldwide for both solar and onshore wind. BP believes the move will help it meet its own demand for low carbon power as well as helping customers decarbonize their operations.
BP said it intends to sell BP Wind Energy as an integrated business, with its workforce expected to transfer to the new owner on completion of a sale. BP intends to launch the sale process shortly.
