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BP just announced what some are calling a “radical” and “transformative” plan to cut its oil and gas production and invest in clean energy.
Is an oil major finally getting serious about climate?
Let’s take a look
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🧵" title="Thread" aria-label="Emoji: Thread"> https://www.cnn.com/2020/08/04/business/bp-oil-clean-energy/index.html">https://www.cnn.com/2020/08/0...
Is an oil major finally getting serious about climate?
Let’s take a look
First, the announcement: BP says it is cutting oil and gas production by about 40% by 2030, while its refining output will decline about 30%.
This is a BIG deal.
It’s the first time an oil major has admitted it needs to slash production to meet its climate goals.
This is a BIG deal.
It’s the first time an oil major has admitted it needs to slash production to meet its climate goals.
Why is it so important to slash production? Because it& #39;s the only way we can meet the goals of the Paris Climate Agreement as this report shows.
Up until today, no oil major had pledged to do so. That’s a breakthrough. http://productiongap.org/2019report/ ">https://productiongap.org/2019repor...
Up until today, no oil major had pledged to do so. That’s a breakthrough. http://productiongap.org/2019report/ ">https://productiongap.org/2019repor...
And it looks like BP’s commitment to cut production 40% is in line with the energy pathways laid about by the IPCC to keep global warming below 1.5°C.
But I think @FuelOnTheFire and other smart folks have those exact numbers.
But I think @FuelOnTheFire and other smart folks have those exact numbers.
BP also said it will boost its investments into low carbon energy ten-fold, to $5 billion a year by 2030.
It will have developed 50 gigawatts of renewable energy, up from 2.5 gigawatts today, and will have 70,000 electric vehicle stations, up from 7,500.
It will have developed 50 gigawatts of renewable energy, up from 2.5 gigawatts today, and will have 70,000 electric vehicle stations, up from 7,500.
That piece on electric vehicle charging stations is key since “charging deserts,” i.e. the lack of available stations, is one of the biggest barriers holding back the rapid adoption of EVs. https://www.nytimes.com/2020/04/16/business/electric-cars-cities-chargers.html">https://www.nytimes.com/2020/04/1...
Ok, you say, but this is Big Oil, so what’s the catch?
First off: BP is leaving out a *big* part of its business, it’s 20% stake in Russian oil giant Rosneft.
It needs to account for those emissions. https://insideclimatenews.org/news/04082020/bp-oil-and-gas-production-climate-change">https://insideclimatenews.org/news/0408...
First off: BP is leaving out a *big* part of its business, it’s 20% stake in Russian oil giant Rosneft.
It needs to account for those emissions. https://insideclimatenews.org/news/04082020/bp-oil-and-gas-production-climate-change">https://insideclimatenews.org/news/0408...
Second, we don’t really know if BP’s investments in “clean energy” are really clean. According to a recent investigation by Greenpeace, some of those investments are just going towards new technology to find more oil. https://unearthed.greenpeace.org/2020/08/02/bp-low-carbon-venture-capital-spent-on-fossil-fuels/">https://unearthed.greenpeace.org/2020/08/0...
Third, there’s nothing in this plan about taking responsibility for the damage BP has done and continues to do to communities around the world.
Remember that little mess they caused in the Gulf of Mexico?
Remember that little mess they caused in the Gulf of Mexico?
We also don’t know what this means for workers.
BP slashed 10,000 jobs back in June. This is why we need governments to adopt a just transition policy ASAP. https://www.axios.com/bp-cut-global-workforce-10000-jobs-f7f20048-6842-49cf-8279-2fe80607ecbf.html">https://www.axios.com/bp-cut-gl...
BP slashed 10,000 jobs back in June. This is why we need governments to adopt a just transition policy ASAP. https://www.axios.com/bp-cut-global-workforce-10000-jobs-f7f20048-6842-49cf-8279-2fe80607ecbf.html">https://www.axios.com/bp-cut-gl...
Finally, let’s not forget that BP has tried to get “beyond petroleum” before.
Just check out this package of “re-branding” materials from January 2020 that got leaked to Drilled News.
(My favorite: how can BP be more like @GretaThunberg?) https://www.drillednews.com/post/is-bp-really-changing-or-is-its-new-climate-message-just-beyond-petroleum-all-over-again">https://www.drillednews.com/post/is-b...
Just check out this package of “re-branding” materials from January 2020 that got leaked to Drilled News.
(My favorite: how can BP be more like @GretaThunberg?) https://www.drillednews.com/post/is-bp-really-changing-or-is-its-new-climate-message-just-beyond-petroleum-all-over-again">https://www.drillednews.com/post/is-b...
At a basic level, we just don’t have enough information to know if this is just a PR move that looks good on paper or if BP will be getting to work tomorrow slashing its production.
Until we start seeing wells shutdown (not sold) and remediation underway, stay skeptical.
Until we start seeing wells shutdown (not sold) and remediation underway, stay skeptical.
Also, don’t think this is because of the goodness of BP’s heart: they know this is the only future for their business.
Their stock price, which is down 40% this year, jumped 7.5% on this news (even with the news they& #39;re cutting their dividend).
Their stock price, which is down 40% this year, jumped 7.5% on this news (even with the news they& #39;re cutting their dividend).
Bottom line? As Bill said, “This is far from perfect, but far from normal.”
BP has admitted there is no future for oil. They’ve publicly committed to slash production and invest in clean energy.
Now, we need to hold them to it. https://twitter.com/billmckibben/status/1290707335145500675">https://twitter.com/billmckib...
BP has admitted there is no future for oil. They’ve publicly committed to slash production and invest in clean energy.
Now, we need to hold them to it. https://twitter.com/billmckibben/status/1290707335145500675">https://twitter.com/billmckib...
Don’t let up pressure for an instant. Big Oil has lied about the climate crisis for decades, all while pretending to be part of the solution.
BP deserves relentless, unmitigated pressure until the day we’ve finally ended the use of fossil fuels once and for all.
BP deserves relentless, unmitigated pressure until the day we’ve finally ended the use of fossil fuels once and for all.
