British energy giant BP [BP:LN] announced an overhauled budget plan to invest USD8bn more in oil and gas businesses by 2030, while reiterating its pledge to equally divide its spending by 2030 between its oil and gas and energy transition businesses, as reported by Reuters on February 7. BP made an industry-leading promise three years ago to slash its oil and gas production by 40% by 2030 on 2019 levels, and the total spending by 2030 on oil and gas and its energy-transition businesses will range from USD14bn to 16bn. However, the company scaled back its target in the revamped plan, where it expected a 25% reduction in oil and gas production by 2030 and raised the total budget to between USD14bn and 18bn.
BP CEO, Bernard Looney, stated that the company will continue short-term investment in today’s energy system that relies on oil and gas. Looney added that the enterprise must ensure an orderly energy transition, as the world needs secure, affordable energy with lower carbon emissions amid mounting concerns over energy security due to Russia’s invasion of Ukraine. Under BP’s strategy to match energy-transition investments with oil and gas spending by 2030, it plans to allocate around half of its green spending for bioenergy, convenience stores, and electric vehicle (EV) charging, with the other half for hydrogen, renewables, and electricity. By 2030, the company’s biofuel plants are expected to produce 100,000 barrels a day.