- BP (LON:BP) (BP -0.6%) CEO Bob Dudley says oil and gas will remain vital for meeting energy demand in the foreseeable future, despite the transition towards a low carbon world, and warns that critics calling for investors to sell out of oil and gas companies threaten energy security and the global economy.
- “Renewables are growing at a remarkable rate,” Dudley tells the Oil & Money conference in London, saying they could supply about a third of the energy mix by 2040, “but we still need to meet the remaining two-thirds of demand.”
- “Many trillions of dollars of investment in oil and gas will still be required to counter the substantial decline rates of existing fields," Dudley says.
- The CEO says while groups have spoken about the financial risks of “stranded assets" - oil and gas projects that could become uneconomic if global carbon reduction targets are met and clean tech advances occur - the systemic risk comes from under-investment: “Suppose $2T less were invested than actually required to meet demand. The impact of such under-investment on financial stability could be much more far-reaching."
- Dudley also criticizes activists who seek disclosures on the precise potential financial impacts on BP’s business, saying it would expose the company to arbitrary targets and legal challenges.
- Now read: Buy BP Before It Reports Its Q3 Results
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