BP lowers long-term outlook for oil and gas production

The Guardian:

Global carbon emissions are expected to fall quicker than previously expected as a result of the war in Ukraine and Joe Biden’s efforts to encourage green investment, BP has said.

The oil and gas company said carbon emissions would fall more rapidly than it forecast a year ago thanks to renewed efforts by countries to pursue greater energy security by supporting domestic, renewable energy supplies.

In its annual energy outlook report, BP said it had reduced forecasts for global emissions in 2030 by 3.7% and by 9.3% in 2050. It expects oil demand to be 5% lower and gas demand to have fallen by 6% by 2035. The company said deployment of renewables projects would be 5% higher at current rates.

Countries moved rapidly last year to wean themselves off Russian gas supplies after the invasion of Ukraine.

In the short term this has resulted in other fossil fuels such as coal being ramped up or kept on standby to fill the gap. However, demand for renewable projects to provide a cheap long-term replacement has also improved.

Biden’s Inflation Reduction Act, which came into force in August, is credited with encouraging a new wave of investment in renewables in the US. Policymakers in the UK and EU have been encouraged to follow suit.

[Alex Lawson]

More: Global carbon emissions forecast cut due to Ukraine war and Biden, says BP