BP has reduced its oil and gas exploration activities and could keep some of its resources in the ground.
According to a report by Business Green, a BP executive has claimed that the company has dramatically reduced its levels of oil and gas exploration, and could feasibly keep some of its resources in the ground. Dominic Emery, VP for Strategic Planning at BP, speaking at The Economist Sustainability Summit in London on 21 March, said that exploration had reduced compared to seven or eight years ago.
He also said that while the company does have reserves that it will use, it also had what it calls “resources” which don’t form part of the valuation of the company. “There's no doubt that both globally and within our portfolio, a lot of that oil and gas [from the resources side] won't come out of the ground. We do continue to do some exploration, but most of it is much more conservative than we did previously."
Emery added that the firm’s strong capital efficiency allowed for a huge amount of flexibility in future investments, including new business models.
These statements come in addition to the recent announcements of BP agreeing to disclose how its strategies align with the Paris Agreement and agreeing to work with the Environmental Defense Fund on new methane detection technologies.
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