Points to be noted:
- BP CEO Bob Dudley told reporters that hydrocarbons like oil and gas will continue to play a role in the energy mix for years to come
- “It may not be trendy to say that oil and gas will be in the energy grid for decades to come,” Bernard Looney told reporters
- Following the contentious COP26 climate summit, Looney made his remarks.
Statements by Looney
BP’s CEO stated that the firm is committed to combating climate change, but that hydrocarbons such as oil and gas will continue to play a role in the energy mix for years.
“It may not be trendy to say, but oil and gas will be in the energy system for decades,” BP CEO Bernard Looney told reporters.
According to BP’s Looney, the International Energy Agency‘s “Net Zero” analysis released in May stated that the world oil supply “on the net-zero pathway” will still be approximately 20 million barrels per day in 2050.
The COP26 Climate Summit
Following the completion of the COP26 climate meeting in Glasgow, Looney made the following remarks. Nearly 200 countries agreed to “scale down” their coal consumption (rather than “phase-out,” as China and India insisted at the last minute). This involves the “phasing out” of fossil fuel subsidies as well as increased financial assistance to low-income countries.
“We had less than 10 gigawatts in renewables a year ago, and now we have over 23 gigawatts in the pipeline.” We had nothing in the offshore wind a year ago, but now we have 3.7 gigawatts in the world’s largest and fastest expanding markets, the United States and the United Kingdom.
“So we’ve made a commitment, and we’re all in,” he continued.
“More ambition, a real focus on methane, some work on the global carbon markets – I believe these are all very good things,” Looney said of the COP26 summit’s primary findings. There is much more work to be done.”
He said the international community needed to pool its resources to combat climate change and assist developing countries “without jeopardizing their long-term economic prospects.”
Saudi Arabia, along with Russia and the United States, is one of the world’s top oil producers and is attempting to diversify its economy away from oil production.
When it comes to the energy transition, BP‘s Looney expressed concern about supply, claiming that if oil and gas supplies are reduced, prices will rise, putting consumers at risk.
“High prices are bad for consumers and consumers are bad for consumers… “I’m concerned that this may have the unintended consequence of turning people against the [energy] transition,” he said.