BP sees longer timeline for oil and gas as profits soar

BP has posted record profits and pivoted on its goal to significantly cut its oil and gas production by 2030, the multinational energy giant announced on Tuesday.

The company saw profits of USD 27.7 billion in 2022, more than double the USD 12.8 billion it made in 2021 and a jump up from record profits of USD 26.3 billion in 2018.

BP has also scaled back its plans to lower its hydrocarbons production by 35-40% by 2030, and now is targeting a 20-35% cut, citing necessary investment required to meet demand.

The British entity now expects oil and gas production to be around 2 million bpd by 2030.

However, the company intends to invest an additional USD 8 million by 2030 in both hydrocarbons and transition energies such as bioenergy, hydrogen, renewables, electric vehicle charging and convenience.

The latter segment is to receive 50% of total cash expenditure in 2023, and is expected to bring in between USD 10 billion and USD 12 billion in earnings before interest, taxes, depreciation and amortisation in 2030.

“It’s clearer than ever after the past three years that the world wants and needs energy that is secure and affordable as well as lower carbon — all three together, what’s known as the energy trilemma,” said Bernard Looney, CEO of BP.

“To tackle that, action is needed to accelerate the transition. And — at the same time — action is needed to make sure that the transition is orderly, so that affordable energy keeps flowing where it’s needed today.”

Other multinational corporations are also recording record profits in 2022. Last week, ExxonMobil recorded annual profits of USD 55.7 billion, Shell recorded profits of USD 39.9 billion and Chevron recorded profits of USD 36.5 billion.