We will continue to invest in hydrocarbons: BP CEO | Whuff News

BP CEO: A diversified energy system is an affordable system

BPs The strategy is focused on investing in hydrocarbons while at the same time investing in a planned energy transition, the CEO of the oil and gas supermajor said on Monday.

“What the world needs, more than ever now, is a conversation and a series of actions that involve the practical and real things of today and tomorrow,” Bernard Looney, who appeared on a panel discussion moderated by CNBC’s Hadley Gamble, said.

“And I mean, our strategy as BP – which we operate in the UK, we operate here in the Middle East and we do it in the United States and around the world – is to invest in hydrocarbons today, because today’s energy system is a hydrocarbon system,” he added.

BP CEO Bernard Looney was photographed in Texas on March 8, 2022. During a panel discussion on October 31, 2022, Looney said his company’s strategy was to invest in hydrocarbons today, because today’s energy system is a hydrocarbon system.

F. Carter Smith Bloomberg | Getty Images

Speaking at the Adipec conference in Abu Dhabi, Looney said his company is “obviously trying to produce those hydrocarbons with very low emissions” while at the same time investing in “accelerating the energy transition.”

“And we’re doing it in Britain, we’re doing it in the United States, we’re doing it here,” he said, looking at carbon capture, electric car charging, hydrogen and onshore wind.

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A major oil and gas producer, BP says it aims to become a net-zero company by 2050 or earlier. It is one of many firms that have made a net-zero pledge in recent years.

While such commitments attract attention, implementing them is a major undertaking with significant financial and logistical constraints. The devil is in the details and goals always shine in the future.

Looney’s comments about investing in hydrocarbons come at a time when high-profile figures such as UN Secretary-General Antonio Guterres are expressing their feelings on fossil fuels.

In June, for example, Guterres criticized new funding for fossil fuel exploration. He described it as a “fraud” and called for the abandonment of fossil fuels.

The impact of fossil fuels on the environment is enormous. The United Nations says that, since the 19th century, “human activities have been the main cause of climate change, primarily due to the burning of fossil fuels such as coal, oil and gas.”

Back in Abu Dhabi, BP’s Looney turned to the war in Ukraine as he sought to make the case for developing a program that focused on a range of resources and priorities.

“There is a saying that wars do two things: wars reveal, and wars accelerate,” he said.

“And one of the things it showed is that whenever we focus on one thing, it can end up being a problem,” he continued.

Expanding on his point, Looney said that “if you had asked anyone in Europe two or three years ago what they wanted in energy they would have said net-zero.”

“If I ask them today what they want in energy, they will definitely tell you that they want an efficient energy system.”

An efficient energy system, he said, “is an energy system that provides the world – Europe in this case – with safe energy, affordable energy and clean energy.”

What the planet needed, he added later, was a plan aimed not only at reducing emissions but at safety and affordability.

“We have to be very optimistic here,” he added, continuing to note that “a lot of things will help energy security, help a clean energy system.”

“Offshore wind is a place, hydrogen can be a place, EV charging, electrifying transport, it’s a place, bioenergy is a place – so things that contribute to a low carbon economy also contribute to energy security.”

“And if we have a diverse system, over time, we need to have an affordable system.”

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