Hydrocarbons still at the heart of BP’s strategy
BP expands its convenience and mobility activities into new markets
Collaboration is key to industry net zero goals
The COVID-19 pandemic has had a dramatic impact on energy markets and while there have been many challenges, it has also meant that momentum towards a net zero world has increased, said Carole Howe, executive vice president of BP’s trade and shipping arm, said.
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In 2020, global demand for energy is estimated to have fallen by around 4.5%, the biggest drop since 1945, driven by a collapse in demand for oil, Howe said in a session of the 37th Asia-Pacific Petroleum Conference, or APPEC 2021, hosted by S&P Global Platts September 27-29.
Declining oil consumption explains about three-quarters of this, although demand for coal and natural gas has also seen substantial declines. But despite this, renewables, driven by wind and solar, continued to grow significantly, she added.
“In 2020, wind and solar capacity, increased by 238 GW, which is 50% more than any previous expansion and with this share of wind and solar generation, we have also seen a greater increase in the global power mix,” said Howe.
“So for us at BP, the response of renewable energy to the events of the past year is encouraging as we strive to achieve net zero emissions by 2050, or sooner. “
In addition, carbon emissions from energy use fell by about 6.3% in 2020, Howe said.
The challenge, however, is to achieve a sustained and comparable year-over-year reduction in emissions, she said.
In 2020, BP announced its new strategy, paving the way for its transition from an oil company to an integrated energy company, with its strategy built primarily around three pillars: resilient and targeted hydrocarbons, convenience and mobility, and low carbon energy.
“Thus, hydrocarbons are still at the heart of our strategy for the decades to come, but we will focus our hydrocarbons activity on oil and gas that are cheaper to produce, resistant to the rise in carbon costs and in line with our reduction targets. production of about 40% by 2030, ”Howe said.
BP sells fuels in convenience stores with more than 10 million customer touchpoints, but it wants to double that number in the next decade.
“We will expand into new markets such as India, we will redefine our convenience offering and we will create the best electric vehicle charging business with over 10,000 charging points in some of the most popular electric vehicle markets. busiest in the world. world, like the UK, Germany and China, ”Howe said.
BP aims to significantly expand its low-carbon renewable electricity and energy business by the end of this decade and is making good progress, Howe said.
“We have grown our low carbon energy pipeline from 4 GW in 2019 to 21 GW today and we are also expanding our pipeline in solar,” she said, adding that BP is also investing in offshore and onshore wind projects.
Make others travel
“To achieve net zero we need BP to achieve net zero and we also need to help the world achieve net zero,” Howe said. “So one of the things we are doing is advocating more actively for ambitious climate change policies to support net zero and that includes carbon pricing.”
But it is also necessary to engage with governments, regulators and lawmakers in the development of proposed policies throughout the company.
“We have publicly supported the European Commission’s proposal for the economic stimulus plan, which links stimulus funds to the climate plan, as well as the European Commission’s climate goal 2030 and the overall goal of achieving climate neutrality in the EU by 2050, “Howe said.
In Asia, BP is working with the Indonesian government and has completed the feasibility study to develop the first major carbon utilization and storage project at Tangguh LNG, Howe said. Tangguh LNG is a unitary development of six gas fields located in the production sharing contracts of Wiriagar, Berau and Muturi in Bintuni Bay, Papua-Barat.
On shipping, BP recently signed the Call to Action for Decarbonizing Shipping, an initiative supported by industry leaders and the Getting to Zero coalition working group, to enable the full decarbonization of international maritime transport by 2050. In collaboration with the United Nations General Assembly and ahead of COP 26, the signatories also call on governments to cooperate with industry on the policies and investments necessary to achieve Critical tipping points in the decarbonization of global supply chains and the global economy.
“We need to support political work, but we also need to actively collaborate in a number of areas and in trade and shipping, that’s exactly what we’re doing,” Howe said.
BP recently signed an agreement with Japanese shipping company NYK Line to collaborate on future fuels and transportation solutions to help industrial sectors, including shipping, decarbonize.
A strategic partnership with the Mærsk Mc-Kinney Moller Center for Zero Carbon Shipping is also in place for the development of new alternative fuels and zero carbon solutions for the shipping industry.
BP is also increasingly lagging behind biofuel blends on its ships and establishing biofuel supplies for maritime customers at key ports.
“If we work together, we can accelerate development, reduce the risk of investments and provide signals to the market that can help accelerate the decarbonization of the shipping industry, for example,” Howe said.
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