Saturday, April 1, 2023
  • Submit news
  • Contact
  • DMCA
  • Cookie Privacy
  • Privacy Policy
  • Terms of Use
Oil Market News
  • Home
  • Marketdaily
  • Price
  • crudenow
  • Companies
  • politics
  • Gas
  • investing
  • Stock
  • OPEChot
  • brend
  • ships
Oil Market News
Home Market

BP defends transition strategy after curbing retreat from oil and gas

2 months ago
in Market
BP defends transition strategy after curbing retreat from oil and gas
Share on FacebookShare on Twitter


BP’s head of low-carbon energy said there was “absolutely no link” between the decision to maintain higher fossil fuel production and the lower returns available in renewable power as she defended the group’s energy transition strategy and outlined plans to maximise profits.

The British energy major stunned the sector last week with a decision to pare back its industry-leading commitment to cut its oil and gas production by 2030.

Chief executive Bernard Looney framed the move as a response to energy security concerns following Russia’s full-scale invasion of Ukraine and emphasised that the group would also increase spending on its low-carbon businesses by $8bn over the next eight years.

Anja-Isabel Dotzenrath, BP’s executive vice-president for gas and low-carbon energy, said the increased capital expenditure demonstrated the group’s continued commitment to rolling out 50 gigawatts of renewable power by 2030.

“[There is] absolutely no link between confidence in returns from renewables and the production target on the oil and gas side,” she told the Financial Times. “I have the support to deploy $30bn of capex to the end of the decade in my business . . . and I’ve seen what this company is capable of doing.”

Looney in 2020 launched one of the most ambitious energy transition strategies in the sector, promising to transform BP from an oil and gas producer into an integrated energy company ready for a net zero emissions world.

But the Irish executive has struggled to convince investors that BP can run renewables projects profitably enough to compensate for lost earnings from the fossil fuel business.

Dotzenrath, a former head of RWE Renewables who joined BP last year, said it would maximise profits from wind and solar projects by plugging those “green electrons” into low-carbon businesses with higher returns such as hydrogen production and electric vehicle charging.

In its updated strategy last week BP said it expected to deliver “double-digit” returns from its green hydrogen projects compared with 6 to 8 per cent for straight renewable power projects and more than 15 per cent for biogas, retail convenience and vehicle charging.

“This is why you will see us being very active in the Netherlands, Germany and the UK because this is where we have excellent integration options with hydrogen, with e-mobility, with trading, with e-fuels,” Dotzenrath said.

BP recently chose not to bid in an offshore wind auction in California because it offered fewer integration opportunities with other assets and would not deliver financial returns until the 2030s, she said. “California is great but it is an option for the middle of next decade.”

Recommended

BP poached Matthias Bausenwein from Orsted last year to head a reorganised offshore wind division. Dotzenrath said the team would be selective in offshore auctions. “Our resources are better deployed to options and auctions [that] give us line of sight to green electrons earlier.”

BP last year agreed a partnership with Marubeni, the Japanese trading and investment group, to pursue offshore wind opportunities in Japan where Dotzenrath said there were “big synergies” with BP’s existing customer base.

BP also plans to make the most of its existing footprint in India. “We know exactly how to deliver major projects in India so this is a big competitive advantage compared to the traditional renewables players,” she said.

BP’s spending on its five “transition” businesses — biofuels, convenience, charging, renewables and hydrogen — was 30 per cent of group capital expenditure in 2022. Looney plans to increase that to 40 per cent by 2025 and 50 per cent by 2030.

“I am not aware of any other comparable company in our sector who does this and is as clear about it,” Dotzenrath said.



www.ft.com

Latest Oil News

Chickens are ‘coming home to roost’ in the shale patch

Chickens are ‘coming home to roost’ in the shale patch

March 31, 2023
Vitol profits soar to record $15bn on back of energy crisis

Vitol profits soar to record $15bn on back of energy crisis

March 30, 2023
US natural gas prices: déjà vu all over again

US natural gas prices: déjà vu all over again

March 29, 2023
Is the oil price bounce on?

Is the oil price bounce on?

March 28, 2023
Tags: curbingdefendsGasoilretreatstrategyTRANSITION
Previous Post

Cash-rich US oil producers hunt for deals after long M&A dry spell

Next Post

Why a deals boom is brewing in the US oil patch

Related Posts

Chickens are ‘coming home to roost’ in the shale patch

Chickens are ‘coming home to roost’ in the shale patch

by Oil Market News
March 31, 2023
0

This article is an on-site version of our Energy Source newsletter. Sign up here to get the newsletter sent straight to...

Vitol profits soar to record $15bn on back of energy crisis

Vitol profits soar to record $15bn on back of energy crisis

by Oil Market News
March 30, 2023
0

Vitol, the world’s largest independent commodity trader, has emerged as one of the biggest winners of the energy crisis, reporting...

US natural gas prices: déjà vu all over again

US natural gas prices: déjà vu all over again

by Oil Market News
March 29, 2023
0

This time was supposed to be different. Last summer, the price of US natural gas hit a high of $10...

Is the oil price bounce on?

Is the oil price bounce on?

by Oil Market News
March 28, 2023
0

This article is an on-site version of our Energy Source newsletter. Sign up here to get the newsletter sent straight to...

‘Full investigation’ promised into UK wildlife haven oil spill

‘Full investigation’ promised into UK wildlife haven oil spill

by Oil Market News
March 27, 2023
0

The UK government has promised a “full investigation” into the causes of an oil spill over the weekend into Poole...

Libyan state oil chief stresses support across divided country

Libyan state oil chief stresses support across divided country

by Oil Market News
March 26, 2023
0

The head of Libya’s state oil company said he had the backing of both the government in Tripoli and the...

Next Post
Why a deals boom is brewing in the US oil patch

Why a deals boom is brewing in the US oil patch

Subscribe
Notify of
guest
guest
0 Comments
Inline Feedbacks
View all comments

Trend Oil News

Live news: Hong Kong posts record high Covid-19 cases as pressure mounts on

Live news: Hong Kong posts record high Covid-19 cases as pressure mounts on

10 months ago
Oil slips from 7-year highs ahead of more U.S.-Iran talks

Oil slips from 7-year highs ahead of more U.S.-Iran talks

11 months ago
Natural Gas, WTI Oil, Brent Oil

Natural Gas, WTI Oil, Brent Oil

3 months ago
Canadian Overseas Petroleum Ltd comments on “merely opportunistic” legal action

Canadian Overseas Petroleum Ltd comments on “merely opportunistic” legal action

11 months ago
Bringing offshore connectivity and HSE advances to onshore operations

Bringing offshore connectivity and HSE advances to onshore operations

10 months ago
ADVERTISEMENT
Chickens are ‘coming home to roost’ in the shale patch

Chickens are ‘coming home to roost’ in the shale patch

March 31, 2023

Vitol profits soar to record $15bn on back of energy crisis

March 30, 2023

US natural gas prices: déjà vu all over again

March 29, 2023

Is the oil price bounce on?

March 28, 2023

‘Full investigation’ promised into UK wildlife haven oil spill

March 27, 2023

Libyan state oil chief stresses support across divided country

March 26, 2023

Crude Oil

4 Days from Deadline, EU Fails To Agree On Russian Oil Products Price Cap

4 Days from Deadline, EU Fails To Agree On Russian Oil Products Price Cap

February 1, 2023
Oil rises after U.S. fuel stocks draw down; economic concerns loom

Oil prices settle steady on higher U.S. demand, weaker dollar

January 31, 2023
S&P 500 Down 1%; Crude Oil Drops Over 2%

S&P 500 Down 1%; Crude Oil Drops Over 2%

January 30, 2023
Russia Can’t Replace the Energy Market Putin Broke

Russia Can’t Replace the Energy Market Putin Broke

January 29, 2023

Investing

Orbital Sidekick Raises $10M Investment to Monitor Oil and Gas Industry from Space 

Orbital Sidekick Raises $10M Investment to Monitor Oil and Gas Industry from Space 

February 1, 2023
Crude Oil Shielded From Bond and Stock Market Rout

Clean-energy investing poised to top money backing oil and gas after hitting a record

January 31, 2023
Crude Oil Shielded From Bond and Stock Market Rout

The Cushing® MLP & Infrastructure Total Return Fund Announces Fund Name Change

January 30, 2023
Boeing’s 747, the original jumbo jet, prepares for final send-off By Reuters

Boeing’s 747, the original jumbo jet, prepares for final send-off By Reuters

January 29, 2023

Market

Chickens are ‘coming home to roost’ in the shale patch

Chickens are ‘coming home to roost’ in the shale patch

March 31, 2023
Vitol profits soar to record $15bn on back of energy crisis

Vitol profits soar to record $15bn on back of energy crisis

March 30, 2023
US natural gas prices: déjà vu all over again

US natural gas prices: déjà vu all over again

March 29, 2023
Is the oil price bounce on?

Is the oil price bounce on?

March 28, 2023

OPEC

US Close- Fed signals more hikes coming, Powell says disinflation process begun, ADP

US Close- Fed signals more hikes coming, Powell says disinflation process begun, ADP

February 1, 2023
‘OPEC does not control the price’: OPEC President | OPEC News

‘OPEC does not control the price’: OPEC President | OPEC News

January 31, 2023
OPEC+ Closely Watches Chinese Factory Data

OPEC+ Closely Watches Chinese Factory Data

January 30, 2023
Week Ahead: FOMC, BOE, ECB, OPEC, NFP and Big Tech Earnings

Week Ahead: FOMC, BOE, ECB, OPEC, NFP and Big Tech Earnings

January 29, 2023
  • Submit news
  • Contact
  • DMCA
  • Cookie Privacy
  • Privacy Policy
  • Terms of Use

© 2022 OilMarket.News

No Result
View All Result
  • Home
  • Market
  • Price
  • crude
  • Companies
  • politics
  • Gas
  • investing
  • Stock
  • OPEC
  • brend
  • ships

© 2022 OilMarket.News

wpDiscuz
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.