BP chief brands ‘stranded asset’ fears misguided

BP chief executive Bob Dudley has branded fears that the oil industry’s $1 trillion investments in oil and gas could be left stranded by a shift to low-carbon energy as misguided.
The oil boss said campaigners calling for financial institutions to divest from oil and gas companies to avoid so-called ‘stranded assets’ are underestimating the flexibility of oil companies.
The largest majors invest a total of $100bn in new fossil fuel projects every year, but could still adapt to a low-carbon world “in time” by reshaping their businesses “within a decade” and remaining financially resilient, he said.
“They are driven by good intentions, but my concern is that their suggested recommendations could lead to bad outcomes, particularly for some of the most vulnerable people in the world,” he told delegates of a London conference.
“The first problem is it ignores the continuing contribution needed from oil and gas in this low carbon energy transition,” he said.
“I believe the more serious systemic risk comes from underinvestment in oil and gas exploration and production - not overinvestment,” he added.
BP chief brands ‘stranded asset’ fears misguided

BP backs carbon capture technology to help meet Paris climate goals while using fossil fuels

Although renewable energy is growing faster than any other energy source in history, fossil fuels will still meet the majority of the world’s energy demand by 2040 and can still be consistent with climate change targets, he said.
Official forecasts estimate that renewable energy, such as wind and solar power, could meet around a third of the world’s energy demand in the coming decades.
“But we still need to meet the remaining two-thirds of demand – and oil and gas have a crucial role to play. They can do that and be consistent with the Paris goals – so long as carbon capture usage and storage is deployed widely, especially in the power sector,” he added.
Carbon capture technology has long been touted as a potential solution in tackling greenhouse gases, by trapping the emissions from power plants and factories before they enter the atmosphere.
Carbon storage technology developers are working on solutions to transport the trapped carbon gas to underground storage facilities where they would be held permanently.
The process is eye-wateringly expensive and still unproven at the scale needed to help meet climate targets.
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