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  • Oil and gas can be consistent with the Paris goals

    Continued investment rather than divestment will help meet the dual energy challenge, said BP CEO Bob Dudley when he addressed the Oil & Money Conference in London yesterday.

    Arguing against divestment in his keynote speech, Dudley said the energy industry is facing a fork in the road.

    “We could go the way of people who want to drive a wedge between the energy industry and investors. They push for potentially confusing disclosures, raise the spectre of a systemic risk to the financial system from stranded assets and campaign for divestment − all in an effort to squeeze oil and gas out of the fuel mix.

    “They are driven by good intentions, but my concern is that their suggested recommendations could lead to bad outcomes, particularly for some of the most vulnerable people in the world,” he said.

    “Or, we could take a different, more innovative and collaborative path; one that recognizes that many fuels must play a part in meeting the dual challenge − albeit, made much cleaner, better and kinder to the planet.”

    Dudley made clear that the energy system, including oil and gas, has to change. This path requires: ‘rapid disruption to our industry’. It is already taking significant steps, he said:

    - Investing in all kinds of renewables − solar, wind, bioenergy, battery technology, and enabling electrification of vehicles.
    - Producing natural gas as the perfect partner for intermittent renewables − gas emits half the carbon emissions of coal in power generation.
    - Working as part of the Oil and Gas Climate Initiative to develop carbon capture use and storage (CCUS) and to set an ambition to keep methane intensity at 0.20%
    - Promoting well-designed carbon price systems that incentivize everyone − consumers and energy producers alike − to cut emissions.
    - Improving energy efficiency in collaboration with automobile manufacturers, working to improve engine-design and manufacture advanced fuels and lubricants. The International Energy Agency says energy efficiency could make the biggest contribution to meeting the Paris goals.

    “And, we can do this even faster and more efficiently with clearer, smarter policy signals from governments,” he said.

    Concluding his speech to the audience of senior industry executives, Dudley said:

    “Like many of you here today, I’m an engineer by training. We are, by nature, problem-solvers. I’m confident our industry can continue to help power the world, lift people out of poverty, and keep society advancing – while, at the same time, contribute to dramatically reducing emissions to meet the Paris goals.

    “So long as we choose the path of collaboration and innovation over the path of division and exclusion, both our industry and the world have a great future ahead.”



    Thursday 11:32