BP, a global oil major, has emphasized the importance of investing in both oil and gas production and accelerating the energy transition to mitigate sharp price increases and combat greenhouse gas emissions. BP CEO Bernard Looney highlighted the seven-fold surge in global gas prices last year, caused by a 3% reduction in global gas supplies following Russia's invasion of Ukraine. This led countries to increase energy expenditures and shift towards coal.
Looney stated during the B20 conference in New Delhi that investments are required in the current energy system while simultaneously accelerating the energy transition. He emphasized the need for an orderly energy transition to maintain its momentum, as global emission levels have continued to rise since the Paris Agreement in 2015, despite global efforts.
The International Energy Agency (IEA), based in Paris, expects global oil demand to increase by 2.2 million barrels per day (bpd) in 2023, reaching a record high of 102.2 million bpd.
BP has committed to allocating 40% of its capital to energy transition projects by the mid-2020s and 50% by the end of the decade. Looney announced that BP would invest between $55 billion and $65 billion in energy transition growth engines throughout this decade.
BP, in partnership with Reliance Industries Ltd, has been investing in energy projects in India. They have already established around 3,000 electric vehicle charging points, up from 750 in January, and have set up 300 battery swapping stations. Additionally, BP's venture arm has acquired a stake in the electric ride-hailing startup BluSmart. Looney expressed his expectation that BP will further expand its activities in India in the coming years.
