Speaking to the B20 conference in New Delhi, BP CEO Bernard Looney said that in addition to accelerating the energy transition to reduce the emission of greenhouse gases, the global community must also invest more in gas and oil production if it is to avoid spikes in prices during the transition.
Looney said that after 3% of the world’s supply of natural gas was impacted by the beginning of the war in Ukraine, natural gas prices rose to seven times their usual level, forcing some countries to switch back to using coal and accelerate their investment in alternative energy sources. He told the conference that when it comes to choosing whether to invest in hydrocarbons or renewables:
“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 the energy transition.”
The world’s appetite for oil is unlikely to decrease soon, with the International Energy Agency (IEA) predicting that global demand will rise to a new record, which comes to 102.2 million barrels per day this year. Nevertheless, Looney said that by 2025, 40% of BP’s capital spending will be focused on projects related to the energy transition, with this rising to 50% by the end of this decade.
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