BP will continue producing hydrocarbons for decades to come; CEO  

London (Quantum Commodity Intelligence) – BP will continue producing hydrocarbons for decades to come and will benefit from rising oil prices even as it reduces output as part of its shift to low-carbon energy, Chief Executive Bernard Looney said in an interview with Reuters on Tuesday.

The BP boss also said that the recent rally in crude prices, which climbed on Tuesday to a more than two-year high above $75 per barrel, is likely to continue, speaking to Reuters at the Global Energy Transition conference.

"There's a very strong possibility that these prices will sustain over the coming years, and if they do, that's very good for our strategy."

Higher oil prices mean BP will be able to raise more cash from selling assets that will go towards building its renewables and low-carbon business, as well as returning money to shareholders via share buybacks, he said.

Looney brushed aside investor concerns that BP might miss out on the rally because of its plan to slash oil output by 40 per cent and grow its renewables output 20 fold by 2030 as part of its energy transition.

"As people understand we're going to be in the hydrocarbons business for decades to come, that concern has gone away a little bit."

"We want to run the best hydrocarbons business possible. We don't want to run the biggest hydrocarbons business possible."

Reuters noted that BP's shares hit their lowest since the mid-1990s late last year and although they have recovered strongly they are still around 30% below their pre-COVID-19 crisis levels.