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BP vows to cut oil and gas production by 40 percent by 2030, but few questions remain

The London-based oil giant's plan is the foremost task related to climate change, which major oil companies have offered over the past year.

London (Natural Energy News): Energy giants BP say it will significantly reduce its fossil fuel production over the next decade, marking the first commitment to such a short-term production decline from a major global oil company, which is significant in global greenhouse gas emissions.

The company said on Tuesday that its oil and gas production would decline by about 40 percent by 2030, while its refining production would decline by about 30 percent, lowering BP's direct emissions as well as vehicles coming from its products.

The announcement is the most detailed and significant of the promises made by the world's major oil and gas companies, who have been announcing increasingly ambitious plans to address climate change since last year, yet largely fail to say Have been when or how far will they be? From fossil fuels in the coming years. In fact, many plans allow companies' oil and gas production to continue for years.

Andrew Grant, head of oil, gas and mining said at the Carbon Tracker initiative that "Bharat Petroleum has fundamentally changed the game. In the arms race of emissions declarations, most oil and gas peers have easily ignored the global need for the production and use of oil and gas" and BP's production cuts make it "indisputably the industry leader. "

According to BP spokesman David Nichols, the 40 percent production cut does not include the 20 percent stake of BP of the Russian energy company Rosneft.

BP CEO Bernard Loney said in February that the company would reach net-zero emissions by 2050, but declined to say what steps he would take in the near term. Now, the company says it will increase its investment in low-carbon energy tenfold to $ 5 billion a year by 2030, as it reduces its exploration and production of oil and gas.

Within 10 years, BP said, it would have developed 50 GW of renewable energy, up from 2.5 GW today, and 70,000 electric vehicle stations above 7,500. BP will also increase investment in biofuels, hydrogen and carbon capture and storage - a technology that draws carbon dioxide from smokers or directly from the air.

With the reduction in oil and gas production, the company says its direct emissions will decrease by about one-third by 2030, while it will reduce the carbon-intensity of the products sold by more than 15 percent.

Mel Evans, a senior climate campaigner at Greenpeace UK who was a critic of BP's plans, called the announcement "a necessary and encouraging start".

On Sunday, Greenpeace released an analysis of BP's venture capital expenditures, largely devoted to clean energy, and found that it included investment in companies that could use artificial intelligence to help explore oil and gas. Let's use.

BP spokesman Nicholas said in an email to InsideDelt News that about 10 percent of the fund is dedicated to making oil and gas development "cleaner and more efficient".

Oil companies have lost billions of dollars as the coronavirus epidemic reduced global oil demand, and BP's announcement came on the same day it reported a $ 16.8 billion loss in the second quarter of the year. The right-down or one-time accounting deficit included a figure of $ 10.9 billion, due to projections by the company to reduce oil and gas demand as a result of epidemics and global efforts to address climate change. BP also said that it was cutting its dividend in half.

Luke Parker, vice president of corporate analysis at research and consulting firm Wood Mackenzie, said the company's earlier commitments filled key vacancies and produced the "clearest and most detailed roadmap" provided by many major oil companies. 

Andrew Logan, senior director of oil and gas at Ceres, a sustainable investment advocacy group, called BP's plan "transformative" because of its acceptance that oil and gas production should fall sharply.

"To make sure the plan leaves a lot of questions," he said in the email, particularly around BP's stake in Rosneft, "but seeing BP as an engine of growth would have been something Is one that will serve to throw off a transition to generating large amounts of cash. An earn-out for the rest of the industry. "

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