The Chief Executive of BP, Bernard Looney, warned of significant price increases for oil and gas if supply were to be lowered too quickly without a corresponding decline in demand on Tuesday at the International Energy Week event in London. This comes shortly after BP lowered its emissions goals and announced it will produce more oil and gas for a longer period.

During the announcement that BP would be producing more oil and gas last month, Looney stated that “an orderly” transition is required. BP now aims for a fall in emissions from carbon in its oil and gas production of 20% to 30% in 2030 compared to a 2019 baseline, lower than the previous aim of 35-40%.

Excerpts from his submission yesterday:

“Reducing supply without also reducing demand inevitably leads to price spikes – price spikes lead to economic volatility.”

“People today want an energy system that works. That provides secure, affordable and low-carbon energy – what the Energy Institute calls the triple energy crisis.”

“There’s a risk that volatility will undermine popular support for the transition, an outcome which nobody wants.”

“We avoid that outcome by investing in today’s energy system, as well as investing in the transition. And, not or.”