By Paul Homewood
From telegram:
BP warns that investment in oil and gas production will be needed over the next three decades if the world is to avoid further shortages and price volatility.
The oil giant said in its annual energy outlook released on Monday that fossil fuels are still likely to account for around 20% of primary energy by 2050 even if climate policies significantly tightened.
Spencer Dale, chief economist at BP, said investment in new wells is needed through 2050 to ensure a supply of fossil fuels matches demand.
“The natural decline in current production sources means that there is a need for continued upstream investment in oil and natural gas over the next 30 years,” he wrote in the report.
The review is likely to provoke a backlash from climate groups and campaigners, who argue that investment should be stopped immediately to achieve zero targets.
Greta Thunberg told world leaders in Davos earlier this month that new mining should immediately stop, while UN Secretary-General António Guterres said last June: “New funding for fossil fuels jelly is an illusion”. The International Energy Agency says by 2021 that new oil, gas or coal projects should not be approved if the world continues to be on track to reach its net zero emissions target by 2050.
However, BP said continued oil and gas supplies were needed to prevent a repeat of disruptions like last year when Russian oil and gas supplies were cut sharply following the invasion of Ukraine.
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