BP sets out strategy for decade of delivery towards net zero ambition

BP has set out its strategy for a ‘decade of delivery’ towards its net zero ambitions, which it says will ‘reshape’ its business as it ‘pivots from being an international oil company (IOC) focused on producing resources to an integrated energy company (IEC) focused on delivering solutions for customers’.

Within 10 years, BP aims to have increased its annual low carbon investment 10-fold to around $5bn/y, building out an integrated portfolio of low carbon technologies including renewables, bioenergy and early positions in hydrogen and carbon capture, use and storage (CCUS). It aims to have developed around 50 GW of net renewable generating capacity by 2030 – a 20-fold increase from 2019 – and to have doubled its consumer interactions to 20 million a day. 

Over the same period, the company’s oil and gas production is expected to reduce by at least 1mn boe/d, or 40%, from 2019 levels. Its remaining hydrocarbon portfolio is expected to be more cost and carbon resilient.

BP is also aiming for emissions from its operations and those associated with the carbon in its upstream oil and gas production to be lower by 30–35% and 35–40% respectively by 2030.

The company has also set out a new financial framework to support a fundamental shift in how it allocates capital, towards low carbon and other energy transition activities. The combination of the strategy and financial framework is designed to provide a coherent and compelling investor proposition – introducing a balance between committed distributions, profitable growth and sustainable value – and create long-term value for stakeholders, notes BP.

‘Energy markets are fundamentally changing, shifting towards low carbon, driven by societal expectations, technology and changes in consumer preferences. And in these transforming markets, BP can compete and create value, based on our skills, experience and relationships. We are confident that the decisions we have taken and the strategy we are setting out today are right for BP, for our shareholders, and for wider society,’ said Helge Lund, Chairman, BP.