By Ron Bousso Reuters A brief on what BP is doing. My guess is they are going to cut output to drive the market. It could be that other oil companies could fill the gap or move with BP. However, they prefer trump in office so making Biden look bad is a realistic plan for them. Their attorneys are already writtening the executive orders. Speaking to Reuters on Tuesday after BP announced .7 billion in first quarter profits, CEO Auchincloss said BP may overshoot or undershoot the 2030 target. “Two million [(boed) Barrels Of Oil Equivalent Per Day] is a decent number to stick by right now. Could it be higher? Yes. Could it be lower? Yes.” This kind of plays into what other sources are saying. It suggests a previous goal to reduce its oil and
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by Ron Bousso
Reuters
A brief on what BP is doing. My guess is they are going to cut output to drive the market. It could be that other oil companies could fill the gap or move with BP. However, they prefer trump in office so making Biden look bad is a realistic plan for them. Their attorneys are already writtening the executive orders.
Speaking to Reuters on Tuesday after BP announced $2.7 billion in first quarter profits, CEO Auchincloss said BP may overshoot or undershoot the 2030 target.
“Two million [(boed) Barrels Of Oil Equivalent Per Day] is a decent number to stick by right now. Could it be higher? Yes. Could it be lower? Yes.” This kind of plays into what other sources are saying. It suggests a previous goal to reduce its oil and gas production by 2030 is now flexible (move in) and would depend more on returns rather than on volumes. Manipulate the economy to achieve profit goals.
PRAGMATIC APPROACH
CEO Murray Auchincloss took office in January following Looney’s shock resignation last September. he is out to make his mark in what he calls a pragmatic approach.
BP has over 30 projects across its businesses that it would need to decide whether to proceed with in coming years, Auchincloss said.
“And as we make those decisions on a returns-based approach, that will help inform what we think our production will be in 2030, but I am focused on returns and cash flow, not volume.”
In February, he said he expected BP’s output to grow by 2% to 3% through 2027.
Earlier this year, Shell CEO Wael Sawan also watered down the company’s emission reduction targets, citing expectations for strong gas demand and uncertainty about the energy transition as he also seeks to boost Shell’s shares.
Biraj Borkhataria, deputy head of European research at RBC Capital Markets, said he expected BP to increase its spending on oil and gas production, known as upstream.
“BP highlighted they were focusing on returns, and therefore I would expect the next iteration of the capital allocation strategy to incorporate higher upstream capex (capital expenditure), and a lower allocation to certain aspects of its transition growth engines.”
“All in all, this should translate to higher upstream volumes than the 2 million boed target in 2030,” Borkhataria said.
