Dave Lawler, BP America’s chair, has said that BP’s plans to produce more oil than previously announced did not mean it was shifting away from its transition to renewable and low-carbon energy.
Amid the background of the 2020 oil price crash, BP announced that it planned to cut its fossil fuel production by 40% by the end of the decade. Since then, Russia’s invasion of Ukraine exposed weaknesses in the market and sent oil prices higher, leading BP to scale back its target to a 25% reduction.
Speaking to the Financial Times in Denver, Lawler said this would not prevent the company from also focussing on the energy transition, saying that the revised short-term plans were simply a reaction to the issues brought up by the invasion of Ukraine:
“What we’re going to do is invest additional dollars here, so it will come up some, and we will hold on to some assets globally longer than expected, but then those will be sold. It’s just an adjustment for where the world is right now.”
BP is currently in the process of establishing and acquiring green businesses, such as the $4.1 billion purchase of Archaea Energy, but Lawler pointed out that shareholders should be prepared to wait a number of years before they see a return from them.
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