BP to cut fossil fuels by 40%

From Reuters

Energy group BP will increase its low-carbon spending to $5 billion a year by 2030 and boost its renewable power generation to 50 gigawatts (GW) while shrinking oil and gas output by 40% compared with 2019, it said on Tuesday.

The portfolio it plans to build would include renewables, bioenergy and early positions in hydrogen and carbon capture and storage technology, with the bulk of the budget to be spent by 2025.

BP’s oil and gas production is expected to shrink by at least one million barrels of oil equivalent a day from 2019 levels, the company said, adding that it would cease exploring for oil and gas in new countries.

“BP today introduces a new strategy that will reshape its business as it pivots from being an international oil company focused on producing resources to an integrated energy company focused on delivering solutions for customers,” it said.

European oil companies seem to accept the reality of the switch away from fossil fuels much more readily than US oil companies, perhaps because Europe is so determined to cut its emissions.  EVs and HEVs will reach 20% of new car sales in Europe next year, and that percentage will rise rapidly over the next few years.  A $10,000 EV will go on sale in Europe in early 2021.   With incentives, it will be the cheapest car—not just the cheapest EV—on the market.  Meanwhile, renewables are cheaper than fossil fuels in most of the world.