BP sticking to green targets after Looney’s exit, insists acting boss

BP’S acting boss insisted that the oil giant’s green drive is on track following his disgraced predecessor Bernard Looney’s exit.

Murray Auchincloss, who was the energy group’s finance chief before stepping up to be interim chief executive, said ‘one person leaving does not change the strategy’.

Looney was seen as the driving force behind BP’s energy transition plans, including a target to hit net zero by 2050 or earlier by slashing oil and gas production and investing in renewables.

But the Irish businessman was forced out last month after admitting that he did not disclose all previous romantic relationships with colleagues to the board during an earlier probe into his conduct.

Over the weekend, the 53-year-old was accused of promoting women who he had been in relationships with.

Eco targets: BP’S acting boss Murray Auchincloss (right) insisted that the oil giant’s green drive is on track following the exit of his disgraced predecessor Bernard Looney (left)

His abrupt exit has raised questions over the future of BP’s green agenda.

Speaking at the Abu Dhabi International Progressive Energy Congress (ADIPEC) in Abu Dhabi yesterday, Auchincloss insisted that the strategy is unchanged. He said: ‘We laid out an update to the strategy in February, seven months ago.

‘That’s a strategy that’s endorsed by the management team and endorsed by the board, one person leaving does not change the strategy.’

He added that the industry needs to continue to invest in oil and gas, saying that the energy transition ‘will take time’.

Oil executives and policymakers are in Abu Dhabi this week for the energy conference ahead of the United Nations COP 28 climate talks in Dubai, which begin on November 30.

Shell chief executive Wael Sawan, who appeared on a panel with Auchincloss, said the oil firm has no plans to sway from its green strategy.

The company has faced criticism for slowing its renewable energy transition since Sawan took over in January, saying it will maintain oil production close to current levels and ramp up production of natural gas.

‘Ultimately the shareholder needs to make a judgment whether the low carbon energy options we’re putting in front of them are investable, and we need to be able to cover our cost of capital and make a return for our shareholders,’ he told the event.

Meanwhile, the chief executive of French energy group Total Energies warned that the energy transition will push up prices for customers, saying governments must find a way to make the increase gradual.

‘We strongly believe electricity prices will go up in the future,’ Patrick Pouyanne said.

Vicki Hollub, the chief executive of US-based Occidental Petroleum, said it is important for energy firms to be included in the climate debate as they have solutions to mitigate the impact.

The bosses of oil and gas firms and heavy industry chiefs met to discuss emissions ahead of COP 28.

The aim is to get major industry players to make decarbonisation commitments that would help limit global warming.

‘We are hoping to reach this agreement before COP28 and then to align on how best this will be positioned at the COP,’ said COP28 chief executive Adnan Amin.

This post first appeared on Dailymail.co.uk