August 5, 2020 Read More →

BP’s production cut doesn’t bother Wall Street

Quartz ($):

One of the world’s largest oil companies just announced it would cut 40% of its oil production. During an investor presentation on Aug. 4, BP announced it would roll out the dramatic cuts over the next decade, while limiting future exploration for new sources of petroleum.

A few years ago, BP’s plan to pivot away from oil would been unthinkable. But it barely raised an eyebrow on Wall Street. 

“It’s first of the five oil majors to be very concrete about plans to address the energy transition and the first to say we’re cutting production,” says Kathy Hipple, a financial analyst for the Institute for Energy Economics and Financial Analysis. Until now, no announcement by oil supermajors has been compatible with a world where warming is kept well below 2 degrees C. 

[Michael Coren]

More: BP said it will cut oil production 40% and the stock market didn’t blink

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