Global Oil Central, BP said the world must invest in oil and gas production to avoid sharp price spikes while accelerating the energy transition to combat greenhouse gas emissions. BP has invested in India’s gas sector, and its venture arm has bought a stake in electric ride-hailing startup BluSmart. BP, investing in energy projects in India along with its partner Reliance Industries Ltd, has set up about 3,000 electric vehicle charging points to date, up from 750 in January. The two have set up 300 battery-swapping stations.
CEO Bernard Looney said in New Delhi that global gas prices surged seven-fold last year as 3 per cent of global gas supplies were hit following Russia’s invasion of Ukraine, forcing countries to boost energy spending and shift to coal.
Looney told the B20 conference, “We must invest in accelerating the energy transition.” Energy transition has to be orderly to maintain its pace as emission levels have risen since the Paris conference on climate change in 2015, despite global efforts, he said. The Paris-based energy watchdog, International Energy Agency (IEA) expects global oil demand to climb by 2.2 million barrels per day (bpd) in 2023 to reach a record high of 102.2 million bpd.
Looney said his company would invest 40 per cent of its capital on energy transition projects by the middle of this decade and 50 per cent by the end of the decade. “We will invest between $55 and $65 billion as BP this decade in energy transition growth engines,” he said.