bp’s decision to produce oil and gas for longer than it intended has sparked concerns from shareholders who are set to put a vote against the Chief Executive Officer (CEO) Benard Looney.
According to Reuters, one investment advisory firm PIRC recommended that bp shareholders vote against Looney in favour of a climate activist resolution filed by Follow This on April 26.
Shareholders were, however, advised by ISS and Glass Lewis to oppose the resolution. Reuters said that Norway’s US$1.4 trillion sovereign wealth fund, one of the world’s largest investors and itself built on oil and gas revenue is also opposing the Follow This resolution.
bp’s renege was in response to the world’s evolving energy needs, it said on Feb. 8. It said that it is not dialing back on its transition to green energy; that it intends to increase its investment in oil and gas and in its “transition growth engines” – bioenergy, hydrogen, renewables, electric vehicle charging and convenience.
Both areas will see an additional investment of US$8 billion of capital through 2030.
With the additional investment and bp holding on to its assets for a longer period, it expects its oil and gas production to be around two million barrels per day (bpd) by 2023. This is now a 25% reduction, as opposed to its initially planned 40% reduction.
The company intends to bring five projects on stream this year; another nine expected by 2025’s end. This year, bp said it has a diverse project opportunity portfolio in North America, Trinidad and Tobago, Angola and the North Sea, among other areas.
