BP CEO calls for more oil and gas investment while prioritising energy transition

BP's CEO Bernard Looney

Oil and gas major BP's Chief Executive Officer Bernard Looney on August 26 emphasised the importance of investing in oil and gas production to avoid sudden price increases and also underscored the importance of hastening energy transition to address greenhouse gas emissions effectively.

Looney, who was speaking at the B20 India Summit 2023 in New Delhi, stated that oil prices worldwide saw a seven-fold increase in the previous year. About three percent of the world's gas supply were affected by Russia's invasion of Ukraine, which led to this escalation, he said, adding this situation forced countries to spend more on energy and switch to coal.

"We need to do both. We need to invest in today's energy system responsibly and, at the same time, we must invest in accelerating energy transition," Looney said.

Emission levels have risen since the Paris conference on climate change in 2015, despite global efforts, he said, and highlighted that maintaining a methodical approach to the energy transition is essential.

Looney further said that by the middle of the decade, his company plans to invest 40 percent of its capital to energy transition initiatives, and by the end of the decade, this percentage will rise to 50 percent.

"We will invest between $55 and $65 billion as BP this decade in energy transition growth engines," he said.

BP's investment arm, BP Ventures, has recently acquired a stake in the electric ride-hailing startup BluSmart Mobility.  BP Ventures holds 20 percent equity in the startup that uses only electric vehicles.

"I have every expectation that we will do more in India in years to come," Looney said.

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(With Reuters inputs)