BP, a global oil major, has emphasized the need for simultaneous investments in oil and gas production and the acceleration of the energy transition to address greenhouse gas emissions while avoiding drastic price spikes.
Bernard Looney, CEO of BP, highlighted that global gas prices experienced a seven-fold surge last year due to disruptions caused by Russia’s invasion of Ukraine, prompting nations to increase energy spending and revert to coal.
Looney stressed the importance of responsible investment in the existing energy infrastructure while concurrently accelerating the energy transition. He made these remarks during the B20 conference in New Delhi.
He emphasized that the energy transition must be well-structured to maintain its momentum, as global emissions have continued to rise since the 2015 Paris Climate Change Conference, despite international efforts.
The International Energy Agency predicts record global oil demand of 2.2 million barrels per day for the current year.
Looney also outlined BP’s commitment to investing in energy transition projects. He stated that the company plans to allocate 40% of its capital to such projects by the middle of the decade and 50% by the end of the decade. BP intends to invest between $55 and $65 billion in energy transition growth initiatives over the course of this decade.
In collaboration with Reliance Industries Ltd., BP has been investing in energy projects in India. They have established around 3,000 electric vehicle charging points, a substantial increase from the 750 points they had in January. Additionally, they have deployed 300 battery swapping stations.
BP has also ventured into India’s gas sector and invested in electric ride-hailing startup BluSmart through its venture arm. Looney expressed optimism about further endeavors in India in the years ahead.