More than 20 years ago, the boss of the BP era reframed these famous initials like “Beyond Petroleum”.
This was the first provisional step in the transformation of the company of an oil and gas producer to an energy supplier investing in an increasing quantity of its benefits of fossil fuels in greener technology.
Five years ago, CEO Bernard Looney, who was in charge at the time, accelerated this process with ambitious objectives to reduce the production of oil and gas 40% by 2030, while considerably increasing investments in wind and solar.
Today, BP could represent “Back to Petroleum” following its announcement to return to oil and gas production and investments in renewable energies.
For what?
Profit and action courses. There is simply less money in renewable energies than in oil and gas and certain BP shareholders have got angry and impatient when they look at Shell produce double the yields they have seen while the Exxon investors have received four times more.
For the most part – but not all – the shareholders, the first work of the board of directors and the management of a company is to maximize the value of the company.
BP’s inability to do so has led to active speculation that BP should be taken up by a company that understands it. Or the one who lists his shares in the United States where investors are less interested in a green transition.
Not all shareholders agree with the radical BP strategy that returns to petroleum. Dozens of them have signed a letter expressing their concern about the increase in the production of fossil fuels and want to have their say in the travel direction of the company.
The BP move follows the competitors of Shell and the Norwegian company Equinor reducing plans to invest in green energy. Meanwhile, comments from the “Drill Baby Drill” by American President Donald Trump encouraged investments in fossil fuels.
Many groups say that BP in the long term and others are pursuing a strategy without gain.
Climate concerns will become so acute that a large part of the oil and gas they are looking for will have to stay in the ground and become “blocked assets” unusable without commercial value.
However, less patient shareholders tend to have the noisiest voices.
As such, the cries of dismay of people concerned by the climate are drowned by those who demand that BP do what he knows best: drilling for oil and gas and the return of these benefits to shareholders, which include millions of pension savings.
They would say that it is not the work of BP to wonder the amount of oil and gas that the world wants or needs – it is the work for the companies it serves and their political decision -makers.
And, while the British government decided that it did not want new oil and exploration in British waters, more than 90% of COP activities are outside the United Kingdom and the current US government is thinking very differently.
