{"id":243417,"date":"2023-02-06T11:01:08","date_gmt":"2023-02-06T10:01:08","guid":{"rendered":"https:\/\/climatescience.press\/?p=243417"},"modified":"2023-02-06T11:01:15","modified_gmt":"2023-02-06T10:01:15","slug":"bps-ceo-plays-down-renewables-push-as-returns-lag-beyond-petroleum-imaging-wearing-thin","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=243417","title":{"rendered":"\u201cBP\u2019s CEO Plays Down Renewables Push as Returns Lag\u201d (\u2018beyond petroleum\u2019 imaging wearing thin)"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

<\/p>\n\n\n\n

From Master<\/strong>Resource<\/a><\/p>\n\n\n\n

By Robert Bradley Jr. — February 2, 2023<\/p>\n\n\n\n

\n

\u201c[CEO Bernard Looney] and other BP executives have suggested that the company could play down future investment in areas including solar energy and offshore wind, according to some of the people. Discussions about the company\u2019s direction have caused rifts inside BP over the past year, people close to the company say.\u201d<\/p>\n<\/blockquote>\n\n\n\n

\"\"<\/figure>\n\n\n\n

The Wall Street Journal <\/em>published a very revealing piece yesterday. \u201cBernard Looney seeks to sharpen strategic focus, with less emphasis on environmental goals<\/a>,\u201d reported Jenny Stasburg (February 1, 2023).<\/p>\n\n\n\n

She begins:<\/p>\n\n\n\n

\n

Chief Executive Bernard Looney plans to dial back elements of the oil giant\u2019s high-profile push into renewable energy<\/a>, according to people familiar with recent discussions.<\/p>\n\n\n\n

Mr. Looney has said he is disappointed in the returns from some of the oil giant\u2019s renewable investments<\/a> and plans to pursue a narrower green-energy strategy, the people said. He has told some people close to the company that BP needs to do more to convince shareholders of its strategy to maximize profits in areas where it has a competitive advantage, including its legacy oil-and-gas operations.<\/p>\n\n\n\n

In some of the conversations, Mr. Looney has said he plans to place less emphasis on so-called ESG goals\u2014a catchall term for environmental, social and governance\u2014to help clarify that those aren\u2019t distracting the company from its ability to deliver profits, the people said.<\/p>\n<\/blockquote>\n\n\n\n

So trying to appease the enemy is getting unaffordable even with government subsidies? Politically correct, economically incorrect investments are asking for trouble, after all. And when BP\u2019s oil-and-gas foes scream \u201cgreenwashing\u201d and demand more bad investments\u2013and threaten to sue for not doing enough (greenhushing)\u2013then BP is wise to wise up.<\/p>\n\n\n\n

Of course, BP wants to have it both ways. The article continues:<\/p>\n\n\n\n

\n

Mr. Looney, the people said, is casting the moves as a modest short-term course correction rather than a major strategic pivot for the 114-year-old company. <\/p>\n<\/blockquote>\n\n\n\n

Investors, the owners of the company, matter:<\/p>\n\n\n\n

\n

Analysts and some investors say pledges by BP to shift away from fossil fuels<\/a> and into renewable energy risk handicapping the company\u2019s performance. Many companies are struggling to transition to new green technologies while still relying heavily on traditional energy sources.<\/p>\n\n\n\n

A BP spokesman referred to previous public statements Mr. Looney and BP have made about the company\u2019s strategy, including its commitment to reducing carbon emissions and shifting investments to green energy. Mr. Looney declined to comment through the spokesman.<\/p>\n\n\n\n

BP is scheduled to report full-year earnings Feb. 7 after consecutive bumper quarters boosted by massive profit in its natural-gas trading arm. The company will update investors on its strategic progress at that time, the spokesman said.<\/p>\n<\/blockquote>\n\n\n\n

BP, amid the UK\/EU green extremism, has long tried to \u2018outgreen\u2019 its Big Oil and Big Gas competitors. It started<\/a> with John Browne in 1997 and went downhill from there, with imaging about climate change alarm taking priority from real<\/em> environmental and safety protocols, culminating in the Deepwater Horizon disaster<\/a>. (Shell went second and has paid a price too<\/a>.)<\/p>\n\n\n\n

Back to the article:<\/p>\n\n\n\n

\n

Mr. Looney, a 32-year BP veteran, took over as CEO in early 2020 and soon announced commitments to shrink greenhouse-gas emissions, including from oil and gas the company sells. Analysts said at the time that the new targets went further than rivals\u2019 plans. Investors questioned how renewables could make up for fossil-fuel businesses that typically produced higher\u2014if volatile\u2014returns.<\/p>\n\n\n\n

Shares of BP and London-based rival Shell PLC over the past several years have lagged behind those of U.S. competitors, especially the biggest, Exxon<\/a> Mobil Corp. BP shares are up about 7% from the end of January 2020, having recovered from pandemic lows, while Exxon shares have nearly doubled over the same period.<\/p>\n\n\n\n

As European oil companies, BP and Shell face greater investor and government scrutiny over their carbon-reduction plans than do U.S. rivals, which have stuck more to their core oil-and-gas businesses. Still, overall, the sector globally has been caught between some large investors and governments calling for these companies to move away from fossil fuels, while others demand the profits those assets can generate.<\/p>\n<\/blockquote>\n\n\n\n

Yes, ExxonMobil has dismissed<\/a> Net Zero as impractical and bad public policy.<\/p>\n\n\n\n

Looney knows he cannot be too bold in a transition away from wind and solar, etc. to the real energies that consumers demand.<\/p>\n\n\n\n

\n

Mr. Looney has said in some of the recent discussions that the company will continue its push into renewable energy, but with a finer-tuned focus to avoid spreading resources too thinly or relying too heavily on renewables in its broader strategy. He has suggested that areas of continued emphasis will include developing climate-friendly hydrogen<\/a>, biogas and electric-vehicle partnerships and charging networks, the people said.<\/p>\n\n\n\n

He and other BP executives have suggested that the company could play down future investment in areas including solar energy and offshore wind, according to some of the people.<\/p>\n\n\n\n

Discussions about the company\u2019s direction have caused rifts inside BP over the past year, people close to the company say.<\/p>\n<\/blockquote>\n\n\n\n

Final Comment<\/strong><\/p>\n\n\n\n

Like Enron, BP has become a contra-capitalist company<\/a>, jumping at government subsidies, supporting public policies hurting average consumers, and employing deceit about energy\/climate reality. More than \u201cmodest short-term course correction\u201d is needed. Looney and BP need to formally renounce what was announced three years ago:<\/p>\n\n\n\n

\n

\u201c\u2026 we have set ourselves the ambition to become a net zero company by 2050 or sooner and to help the world get to net zero\u2026. We will need support from partners, investors, policy makers, customers \u2013 and trade associations\u2026. (Bernard Looney, CEO, BP, 2020<\/a>)<\/p>\n<\/blockquote>\n\n\n\n

That support is gone. The opportunity for the company is now to educate the people on the advantages of oil and gas (and coal) and employ climate data to question scientific exaggeration. (Remaining not-so-green, government-subsidized investments in hydrogen, biogas, and EV ventures need some rethinking as well.) Expect some fireworks, and lots of CO2 emissions, from a reborn BP.<\/p>\n","protected":false},"excerpt":{"rendered":"

\u201c[CEO Bernard Looney] and other BP executives have suggested that the company could play down future investment in areas including solar energy and offshore wind, according to some of the people. Discussions about the company\u2019s direction have caused rifts inside BP over the past year, people close to the company say.\u201d<\/p>\n","protected":false},"author":121246920,"featured_media":243419,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_crdt_document":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":{"0":"post-243417","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","6":"hentry","7":"category-uncategorized","9":"fallback-thumbnail"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/02\/image-212.png?fit=1920%2C1080&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-11k5","jetpack-related-posts":[{"id":243069,"url":"https:\/\/climatescience.press\/?p=243069","url_meta":{"origin":243417,"position":0},"title":"Backflip: BP \u201cdisappointed\u201d in renewables \u2014 flags a shift back to oil and gas and \u201cmaking profits\u201d","author":"uwe.roland.gross","date":"02\/03\/2023","format":false,"excerpt":"Bernard Looney seeks to sharpen strategic focus, with less emphasis on environmental goals","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/02\/image-121.png?fit=1200%2C726&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/02\/image-121.png?fit=1200%2C726&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/02\/image-121.png?fit=1200%2C726&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/02\/image-121.png?fit=1200%2C726&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/02\/image-121.png?fit=1200%2C726&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":242842,"url":"https:\/\/climatescience.press\/?p=242842","url_meta":{"origin":243417,"position":1},"title":"BP to cut back on green shift amid booming demand for fossil fuels","author":"uwe.roland.gross","date":"02\/02\/2023","format":false,"excerpt":"Money talks, as they say! Renewables were only ever attractive to the likes of BP, because of all the subsidies that went with it.","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/02\/image-71.png?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/02\/image-71.png?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/02\/image-71.png?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/02\/image-71.png?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/02\/image-71.png?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":245118,"url":"https:\/\/climatescience.press\/?p=245118","url_meta":{"origin":243417,"position":2},"title":"The \u2018Energy Transition\u2019: Learning and Retreat at BP","author":"uwe.roland.gross","date":"02\/23\/2023","format":false,"excerpt":"\u201cPhysical and economic realities must not only be considered but controlling. Wishing and hoping for change is not a successful business strategy, and the past few years have awakened BP management to that reality.\u201d","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/02\/image-666.png?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/02\/image-666.png?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/02\/image-666.png?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/02\/image-666.png?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/02\/image-666.png?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":248353,"url":"https:\/\/climatescience.press\/?p=248353","url_meta":{"origin":243417,"position":3},"title":"Wind & Solar: BP gets real about Net Zero illusions","author":"uwe.roland.gross","date":"03\/18\/2023","format":false,"excerpt":"Renewables were only ever attractive to the likes of BP because of all the subsidies that went with them. Now there is a realisation that fossil fuels cannot be replaced by renewables for the foreseeable future, and BP\u2019s ultimate duty is to its shareholders, not those pushing for Net Zero.","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/03\/image-665.png?fit=1200%2C800&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/03\/image-665.png?fit=1200%2C800&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/03\/image-665.png?fit=1200%2C800&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/03\/image-665.png?fit=1200%2C800&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/03\/image-665.png?fit=1200%2C800&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":224487,"url":"https:\/\/climatescience.press\/?p=224487","url_meta":{"origin":243417,"position":4},"title":"BP Biogas: Greenwashing with the Uneconomic","author":"uwe.roland.gross","date":"10\/18\/2022","format":false,"excerpt":"It is time for real oil and gas companies to\u00a0Go Proud.","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/10\/0Screenshot-2022-10-18-120333.png?fit=784%2C916&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/10\/0Screenshot-2022-10-18-120333.png?fit=784%2C916&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/10\/0Screenshot-2022-10-18-120333.png?fit=784%2C916&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/10\/0Screenshot-2022-10-18-120333.png?fit=784%2C916&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":231664,"url":"https:\/\/climatescience.press\/?p=231664","url_meta":{"origin":243417,"position":5},"title":"BP weighs ending its 70-year-old Statistical Review of World Energy","author":"uwe.roland.gross","date":"11\/29\/2022","format":false,"excerpt":"BP\u00a0(BP. L)\u00a0is considering ending the publication of its Statistical Review of World Energy, over 70 years after it first published the benchmark report, as the energy major focuses on its shift to renewables, the company told Reuters.","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/11\/image-994.png?fit=1200%2C628&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/11\/image-994.png?fit=1200%2C628&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/11\/image-994.png?fit=1200%2C628&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/11\/image-994.png?fit=1200%2C628&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/11\/image-994.png?fit=1200%2C628&ssl=1&resize=1050%2C600 3x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/243417","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/users\/121246920"}],"replies":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=243417"}],"version-history":[{"count":3,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/243417\/revisions"}],"predecessor-version":[{"id":243422,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/243417\/revisions\/243422"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/media\/243419"}],"wp:attachment":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=243417"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=243417"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=243417"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}