London — BP expects its oil and gas production to fall by at least 1 million b/d of oil equivalent or 40% over the next decade, as it transitions to a lower carbon energy company, the company said.
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Under a new strategy announced August 4, BP said it will boost investment on low carbon projects such as renewables, bioenergy by 10-fold to around $5 billion/year by 2030 as part of plans to become a "net zero" emitter.
The move will see BP's upstream oil and gas production fall from 2.6 million boe/d in 2019 to around 1.5 million boe/d while its refining throughput is expected to fall from 1.7 million b/d in 2019 to around 1.2 million b/d.
"BP has been an international oil company for over a century - defined by two core commodities produced by two core businesses. Now we are pivoting to become an integrated energy company - from IOC to IEC," CEO Bernard Looney said in a statement.
As a result, BP said it expects its emissions from its operations and those associated with the carbon in its upstream oil and gas production to be lower by 30-35% and 35-40%, respectively.
BP had already flagged plans for the "most wide-ranging reorganization in [BP's] history" on February 5, announcing ambitious targets for the oil major to become a net-zero carbon emitter by 2050 or sooner.