BP to 'accelerate greening' as profits surge

Oil giant BP has announced plans to accelerate the greening of the company as profits surge on the back of higher oil and gas prices. Whilst shareholders are happy with the announcement and the higher returns on their investment, the company has faced a backlash from consumer groups who say the company is profiting at the expense of the man in the street many of whom are struggling to pay their energy bills.
2021 profits came in at $12.8bn (11.2bn euros) after a loss in the previous year of $5.7bn (5bn euros). Shell announcement of its $17bn (14.9bn euros) profit last week resulted in similar criticism.
Both companies are staples of pension funds but critics accuse them of profiting on the back of misery for UK households following the recovery in COVID-19 hit wholesale energy prices during 2021 that has sparked demands for a windfall tax.
Brent crude oil, the international benchmark, has soared from lows below $20 (17.5 euros) per barrel in April 2020 to $93 (81.5 euros) this week.
The same rises have been seen in natural gas prices which have hit unprecedented levels resulting in 22 million UK households being told of a 54% increase in the energy price cap from April as a result.
The high energy prices are fuelling inflation worldwide with the Bank of England and Banco de Espaňa forecasting inflation rates of over 7 percent this year.
On the positive side BP has said that it will invest more in the tranistion to green energy boosting capacity from renewables and hydrogen, the company now aiming to cut operational emissions by 50% by 2030, compared with a previous target of 30-35%.
Included in its UK plans is an investment in offshore wind in the Irish Sea and off the coast of Scotland while it also committed more money to EV charging points.
BP said it had completed the reorganisation announced in 2020, that cut 10,000 of its 70,000 workforce with the Chief Executive Mr Looney saying: “2021 shows BP is doing what we said we would, performing while transforming.
“We’ve strengthened the balance sheet and grown returns. We’re delivering distributions to shareholders with $4.15 bn of (share) buybacks announced and the dividend increased. And we’re investing for the future.”
But Shadow Energy Secretary Ed Miliband said: “BP’s results yet again demonstrate the case for a windfall tax.
“The boss of BP described the energy price crisis as a cash machine for his company and the people supplying the cash are the British people through rocketing energy bills.”
Liberal Democrat leader Ed Davey echoed those views saying: “The truth is that this is about basic fairness. It simply cannot be right these energy companies are making super profits whilst people are too scared to turn their radiators on and terrified there will be a cold snap.
“The government has said that a windfall tax would harm investment but this is an absolutely bogus argument. These profits have come out of nowhere, no energy company was expecting them, no investor was either.”
With the positive news that BP intends to accelerate greening and that profits have returned, calls are likely to grow for more to be done to help households cope with rising energy costs.

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