December 16, 2020
BP laid out aggressive plans to move towards alternative energy. The plan calls for 40% reduction in oil and gas production over the next decade with greater investment in wind and solar.
Their new Chief Executive, Bernard Looney acknowledges there are a “few concerns, some skepticism and even a few myths” about this major overhaul.
Currently, BP’s largest source of revenue is oil and gas. Needless to say, investors are somewhat skeptical and as a result, the company’s stock remains near a 25-year low.
BP has taken an initial step buying Equinor ASA – an owner of offshore wind farms. They are also working with a Norwegian energy company – planning to enhance their renewable energy capabilities.
BP also entered into a partnership with Microsoft to supply renewable energy to work on initiatives to reduce emissions in cities. It has entered into an arrangement with Houston and Aberdeen in Scotland to sell renewable energy.
We certainly hope they succeed in making the transition from fossil fuel.