Renewables can’t meet demand, says BP boss

The energy giant’s chief executive has accused campaigners of oversimplifying the climate change debate.

BP’s retiring boss Bob Dudley has argued that natural gas should be a bridge between fossil fuels and renewables. Picture: Zuma Press

BP’s retiring chief executive has accused campaigners and politicians of oversimplifying the climate change crisis, arguing that natural gas should be a bridge between fossil fuels and renewables.

Bob Dudley, due to step down in February after almost 10 years in charge, warned the world would “not even come close” to replacing fossil fuels with renewables in the next two decades.

Mr Dudley’s comments follow a year of increasing pressure on energy giants and their investors over climate change.

BP, which produces about 3.7 million barrels of oil and gas a day and is directly or indirectly responsible for 491 million tonnes of annual carbon emissions, has been targeted by Extinction Rebellion protesters and dropped as a sponsor by the Royal Shakespeare Company.

BP’s forecasts suggest if the world continues to tackle climate change at its current pace, oil, gas and coal will still account for 73 per cent of energy consumed in 2040. Even under a “rapid transition”, along the lines of the Paris Agreement, they will account for about 56 per cent.

“There will be 2 billion more people, roughly, by 2040 and we’ll need a third more energy, which is like saying we’re going to need another China and US in terms of scale,” Mr Dudley said.

“Today, renewables are 4 per cent of primary demand around the world. People have simplified this complex thing far too much.

“The epicentre of climate change, really, is there’s a coal-fired power plant starting up every week in eight countries in Asia, so the perspective here and in the US is different to in Asia.

“I believe the world cannot reach the goals of Paris without natural gas displacing coal. Natural gas is a potent greenhouse gas, but if it doesn’t leak and you burn it right, it has half the CO2 emissions of coal.”

BP has moved back into renewables after its ill-fated Beyond Petroleum push, forming a bio­fuels venture in Brazil with Bunge, taking a 50 per cent stake in solar panels group Lightsource and buying Chargemaster, which supplies charging units for electric cars. Critics say renewables account for only $US500m ($720m) of BP’s $US16bn annual spending.

BP, which employs 73,000 people, made pre-tax profits of $US16.7bn on sales of $US298.8bn last year and paid $US8.1bn in dividends, about 6 per cent of the FTSE 100 total.

Mr Dudley said: “We’ve got to move in that direction, but our shareholders also want the dividend. Some say, ‘We’d like you to move from oil and gas quickly to renewables.’ We say, ‘OK, do you want us to cut the dividend?’ ‘Well, no, don’t do that.’ So we’ve got to figure it out.”

Mr Dudley, who was paid $US14.7m last year, said the “disappointing” decision by the Royal Shakespeare Company to drop BP reflected an “unhelpful” mood among a “minority of people”.

“Trying to ostracise and cut people out of the discussion does nothing to help us make the progress we need,” he said.

The Times