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BP oil, gas output to fall 40% by 2030 amid transition to carbon energy company

November 05/2020

MOSCOW (MRC) -- BP expects its oil and gas production to fall by at least 1 million b/d of oil equivalent or 40% over the next decade, as it transitions to a lower carbon energy company, reported S&P Global with reference to the company's statement.

Under a new strategy, BP said it will boost investment on low carbon projects such as renewables, bioenergy by 10-fold to around USD5 billion/year by 2030 as part of plans to become a "net zero" emitter.

The move will see BP's upstream oil and gas production fall from 2.6 million boe/d in 2019 to around 1.5 million boe/d while its refining throughput is expected to fall from 1.7 million b/d in 2019 to around 1.2 million b/d.

"BP has been an international oil company for over a century - defined by two core commodities produced by two core businesses. Now we are pivoting to become an integrated energy company - from IOC to IEC," CEO Bernard Looney said in a statement.

As a result, BP said it expects its emissions from its operations and those associated with the carbon in its upstream oil and gas production to be lower by 30-35% and 35-40%, respectively.

BP had already flagged plans for the "most wide-ranging reorganization in (BP's) history" on February 5, announcing ambitious targets for the oil major to become a net-zero carbon emitter by 2050 or sooner.

As MRC informed previously, global oil demand may have already peaked, according to BP's latest long-term energy outlook, as the COVID-19 pandemic kicks the world economy onto a weaker growth trajectory and accelerates the shift to cleaner fuels.

Earlier this year, BP said the deadly coronavirus outbreak could cut global oil demand growth by 40 per cent in 2020, putting pressure on Opec producers and Russia to curb supplies to keep prices in check.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

ccording to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,594,510 tonnes in the first nine months of 2020, up by 1% year on year. Only high denstiy polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market reached 880,130 tonnes in the nine months of 2020 (calculated using the formula: production minus exports plus imports, exluding producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
Author:Margaret Volkova
Tags:bioplastics, PP, PE, crude and gaz condensate, PP random copolymer, propylene, HDPE, ethylene, gas processing, petrochemistry, BP Plc.
Category:General News
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