BP TO REDUCE OIL AND GAS PRODUCTION - Energy giant BP, formerly known as British Petroleum Company, which has its U.S. headquarters in Houston, Texas says – it will significantly cut oil and gas production over the next decade. The announcement comes after the oil and gas industry has experienced multi-billion dollar losses this year.
BP says it will reduce oil and gas production by 40% or 1 million barrels of oil equivalent a day by 2030. At the same time, the company says it’ll increase investment in low-carbon technology, including renewable energy, carbon capture and bioenergy. Ken Medlock is the senior director at Rice University’s Center for Energy Studies.He says the move isn't tied to BP’s multi-billion dollar losses this year due to low oil prices.
"What you’re seeing though is companies taking steps, given some of the announcements by national and regional government to support greener portfolios," Medlock explained. "And so they’re taking steps to shift their own investments in that direction, because at the end of the day it’s about profitability.”
Medlock says European energy companies such as BP are ahead of U.S. companies when it comes to shifting away from fossil fuels. This morning’s price of West Texas Intermediate Crude Oil is just over $40 a barrel, down $2.