Energy Illustrated: bpNetZero edition | bp

Summary

In this special edition of 'Energy, Illustrated,' BP outlines its ambitious goal to achieve net-zero emissions by 2050. The company's strategy focuses on three key aims: becoming net-zero across all operations, targeting net-zero for carbon emissions from oil and gas production, and reducing the carbon intensity of sold products by 50%. BP explains the rationale behind focusing on scope one, two, and three emissions, emphasizing the importance of a collective effort from producers, consumers, and policymakers to transform the energy system and meet the global net-zero target.

Takeaways

• 🌟 BP has set an ambitious goal to become a Net Zero company by 2050 or sooner, aligning with global efforts to combat climate change.
• 🎯 Aim 1 focuses on achieving Net Zero emissions across BP's entire operations, including both direct (Scope 1) and indirect (Scope 2) emissions.
• 🛢️ Aim 2 targets Net Zero for the carbon emissions associated with the oil and gas BP produces, emphasizing the responsibility for the emissions generated at the point of production.
• 🔄 Aim 3 commits to reducing the carbon intensity of the products BP sells by 50% by 2050, encouraging a shift towards lower carbon energy sources.
• ♻️ BP's approach to Scope 3 emissions is strategic, choosing to focus on the production phase of oil and gas rather than the end-use of all products sold.
• 🌱 The script highlights the importance of a systemic transformation in the energy sector, involving producers, consumers, and policymakers.
• 🚗 For BP to achieve Net Zero, it's not necessary to account for the emissions from someone else's oil and gas production, as the focus is on direct impact and influence.
• 🌐 The script underscores the need for a collective effort to reach Net Zero, including changes in consumer behavior and supportive government policies.
• 🌿 BP's strategy involves leveraging various levers such as carbon offsets, carbon capture, and storage, but also emphasizes the necessity of a broader energy system transformation.
• 📉 The reduction in carbon intensity will be achieved through selling more electricity and renewable energy, which requires consumer adoption of low or zero carbon products.
• 🔗 BP's ten aims are detailed on their website, providing a comprehensive view of their strategy to support the transition to a low carbon future.

Q & A

What is BP's new ambition regarding net-zero emissions?

BP has set an ambition to become a Net Zero company by 2050 or sooner, aiming to help the world reach Net Zero.

What are the 10 aims that underpin BP's net-zero ambition?

The script does not detail all 10 aims, but it discusses aims one, two, and three, which include being Net Zero on an absolute basis across all operations, being Net Zero for carbon in the oil and gas produced, and cutting the carbon intensity of the products sold by 50% by 2050 or sooner.

How does BP define 'absolute basis' in relation to its operations?

BP defines 'absolute basis' as achieving Net Zero emissions across all its operations, including direct emissions (Scope 1) and indirect emissions (Scope 2), by 2050 or sooner.

What is the difference between Scope 1 and Scope 2 emissions in BP's context?

Scope 1 emissions refer to direct emissions from BP's assets, such as refineries and ships, while Scope 2 emissions are indirect emissions from the electricity used to power BP's operations.

Why did BP choose to focus its Scope 3 Net Zero aim on oil and gas production rather than on the products sold?

BP chose to focus on oil and gas production because most of its investment goes into this area, and it aims to shift towards non-oil and gas businesses over time. It believes that focusing on the point of production is the most straightforward and easiest to understand and account for.

How does BP plan to achieve Net Zero for the carbon in the oil and gas it produces?

BP plans to achieve Net Zero for the carbon in the oil and gas it produces by focusing on the point of production, where the oil and gas comes out of the ground, and ensuring that each molecule of carbon is made Net Zero once between extraction and combustion.

What is the significance of reducing carbon intensity by 50% in BP's aim three?

Reducing carbon intensity by 50% means reducing the amount of carbon emitted per unit of energy consumed. This includes not only BP's own products but also those produced by others, aiming to encourage the sale of more low or zero carbon products.

What are some of the potential levers BP can use to reduce emissions to Net Zero?

Some potential levers include offsetting, carbon capture, use and storage, and a transformation of the entire energy system, including changes in how energy is used.

Why is it not realistic to rely solely on offsetting to achieve Net Zero?

It is not realistic to rely solely on offsetting because there must be a transformation of the whole energy system, including all the ways energy is used. Without this transformation, the world would be massively short of energy, leaving vehicles and homes without usable fuel or heat.

What role does consumer behavior play in BP's aim to cut carbon intensity?

Consumer behavior plays a crucial role as it requires consumers to change their behaviors and choose low or zero carbon products. This, in turn, needs to be supported by government policies that make those products widely available, affordable, and attractive to customers.

Where can one find more details about BP's ten aims supporting its Net Zero ambition?

More details about all ten aims can be found on BP's website at BP.com/re-imagined.

Outlines

00:00

🌿 Aiming for Net Zero Emissions at BP

The video introduces BP's new ambition to achieve net-zero emissions by 2050 or sooner, which includes 10 specific aims. The focus of this segment is on three of these aims: Aim 1, which targets absolute net-zero emissions across BP's entire operations by 2050 or sooner; Aim 2, which addresses net-zero carbon emissions for the oil and gas produced by BP; and Aim 3, which commits to reducing the carbon intensity of the products sold by 50% by 2050 or sooner. The video seeks to clarify how these aims for scope one, two, and three emissions interrelate and the rationale behind focusing the scope three aim on oil and gas production rather than on the sale of products like fuels. It explains that BP's operations generated approximately 55 million tons of greenhouse gas emissions in 2019, with 50 million tons being direct emissions (scope one) and 5 million tons being indirect emissions (scope two). The video also discusses the complexity of scope three emissions, which are emissions from the combustion of oil and gas produced by BP, and the decision to focus on the production point as the target for net-zero emissions.

05:02

🔄 Transforming the Energy System for Net Zero

This segment delves into the broader context of achieving net-zero emissions within the energy system. It emphasizes that while offsetting and carbon capture, use, and storage are necessary components of the solution, they are not sufficient on their own. A comprehensive transformation of the energy system is required, including changes in how energy is used. The video stresses that this transformation necessitates the involvement of all stakeholders, from producers and sellers to policymakers and consumers. Aim 3 is further elaborated upon, focusing on reducing the carbon intensity of the products sold by BP by 50% by 2050 or sooner. Carbon intensity is defined as the amount of carbon emitted per unit of energy consumed, and the video outlines potential strategies to achieve this reduction, such as selling more electricity and providing more renewable energy options. The segment concludes by highlighting the need for consumer behavior change and supportive government policies to make low or zero-carbon products widely available, affordable, and attractive. The video invites viewers to explore the remaining seven aims not covered in the video and to engage with BP on their net-zero journey through comments or social media.

Keywords

💡Net Zero

Net Zero refers to the balance between the amount of greenhouse gas produced and the amount removed from the atmosphere. In the context of the video, BP's ambition is to achieve Net Zero emissions by 2050 or sooner, which means they aim to eliminate as much carbon dioxide as they emit. This is a central theme of the video, as it outlines BP's commitment to reducing their environmental impact.

💡Scope 1, 2, and 3 emissions

These terms are from the Greenhouse Gas Protocol and refer to different categories of greenhouse gas emissions. Scope 1 emissions are direct emissions from owned or controlled sources. Scope 2 emissions are indirect emissions from the generation of purchased electricity, steam, heating, and cooling. Scope 3 emissions cover all other indirect emissions that occur in a company's value chain. The video explains how BP's aims for these different scopes of emissions fit together in their Net Zero strategy.

💡Carbon intensity

Carbon intensity is a measure of the amount of carbon emissions per unit of energy produced. The video mentions BP's aim to cut the carbon intensity of the products they sell by 50% by 2050. This means reducing the amount of carbon emitted for each unit of energy consumed, which is a key part of BP's strategy to reduce their overall environmental impact.

💡Oil and gas production

Oil and gas production is the process of extracting oil and natural gas from the earth. The video discusses BP's decision to focus their Scope 3 Net Zero aim on the emissions generated from the oil and gas they produce, rather than on the products they sell. This is because most of BP's investment is in oil and gas production, and they aim to shift towards non-oil and gas businesses over time.

💡Emissions reduction levers

Emissions reduction levers are the various strategies and technologies that can be used to reduce greenhouse gas emissions. The video mentions potential levers such as offsetting and carbon capture use and storage. These are part of the solution to achieve Net Zero, but the video emphasizes the need for a broader transformation of the energy system.

💡Transformation of the energy system

The transformation of the energy system refers to the shift from fossil fuels to renewable energy sources and the changes in energy consumption patterns. The video stresses that to achieve Net Zero, there must be a transformation that includes all aspects of energy use, not just the removal of most of the carbon.

💡Offsetting

Offsetting involves investing in projects that reduce greenhouse gas emissions to balance out emissions made elsewhere. The video mentions offsetting as one of the potential levers to reduce emissions, but it also cautions that relying solely on offsetting is not realistic and that a comprehensive transformation of the energy system is necessary.

💡Carbon capture, use, and storage (CCUS)

Carbon capture, use, and storage is a process that involves capturing carbon dioxide emissions from the air or directly from large point sources such as power plants, and storing it underground to prevent it from entering the atmosphere. The video includes CCUS as a necessary part of the solution to achieve Net Zero emissions.

💡Consumer behavior change

Consumer behavior change refers to the shift in how consumers use and purchase energy products. The video discusses the need for consumers to choose low or zero carbon products, which is essential for achieving BP's aim to cut the carbon intensity of the products they sell in half by 2050.

💡Government policies

Government policies play a crucial role in supporting the transition to Net Zero by making low or zero carbon products widely available, affordable, and attractive to customers. The video mentions the importance of government policies in facilitating the necessary changes in consumer behavior and the broader energy system.

💡Renewable energy

Renewable energy sources like wind and solar power are essential for reducing carbon emissions. The video talks about BP's aim to provide more renewable energy options as part of their strategy to reduce the carbon intensity of the products they sell.

Highlights

BP has set an ambition to become a Net Zero company by 2050 or sooner.

The company's Net Zero ambition is supported by 10 strategic aims.

Aim one targets Net Zero emissions from BP's operations by 2050 or sooner.

Scope one and two emissions include direct and indirect emissions from BP's assets.

Aim two focuses on Net Zero for carbon in the oil and gas BP produces.

Scope three emissions are generated from the combustion of oil and gas produced.

BP chose the point of production to focus on Net Zero for scope three emissions.

The company's investment is primarily in oil and gas production, with a shift towards non-oil and gas businesses planned.

Aim three is to reduce the carbon intensity of the products sold by BP by 50% by 2050 or sooner.

Carbon intensity refers to the amount of carbon emitted per unit of energy consumed.

BP's approach to Net Zero involves a transformation of the entire energy system.

The company is focusing on its own oil and gas production rather than the products it sells from other producers.

BP's strategy includes leveraging carbon capture, use, and storage technologies.

The energy system must reach Net Zero for the carbon flowing through it and for all operations.

BP's aims are designed to contribute to a Net Zero energy system if similar actions are taken by others.

Consumer behavior change and government policies are essential for reducing carbon intensity.

BP's aims are part of a broader commitment to help the world reach Net Zero emissions.

More details on BP's ten aims can be found on their website.

Transcripts

welcome to a special edition of Energy

Illustrated today's topic aiming for net

zero emissions in February we launched a

new ambition for BP to be a Net Zero

company by 2050 or sooner and to help

the world get to Net Zero that ambition

is underpinned by 10 aims in today's

episode we'll be answering a common

question about three of those aims aim

one which is for BP to be Net Zero on an

absolute basis across our entire

operations by 2050 or sooner and aim to

to be Net Zero for carbon in the oil and

gas we produce and aimed 3 which is to

cut the carbon intensity of the products

we sell by 50% by 2050 or sooner and the

question we get about these aims is how

do our aims for scope one two and three

emissions fit together and why have we

chosen to focus our scope three Net Zero

aim on our oil and gas production rather

than on the products we sell such as

fuels right let's get going

aim one is fairly easy to explain we aim

to be Net Zero on an absolute basis

across our entire operations by 2050 or

sooner and the word operations is key

here you can see that in 2019 all our

assets our rakes refinery ships and so

on all together generated roughly 55

million tons of greenhouse gas emissions

which includes co2 and methane of that

total 50 million tons our direct

emissions so-called scope one and five

million our indirect emissions such as

the emissions from other people's power

stations when they supply the

electricity that powers our operations

these are scoped to emissions and you

can see here some of the potential

levers to reduce these emissions to Net

Zero

moving on to aim to

aim to covers roughly 360 million tons

of emissions that fall into scope 3

these are emissions generated if the oil

and gas reproduced gets combusted now

here's where it gets a bit complex once

produced oil and gas often changes hands

many times before it's ultimately

combusted by an end user perhaps in

their car it has likely been bought and

sold many times each molecule of carbon

only needs to be made Net Zero once

between coming out of the ground and

being combusted once it's been made Net

Zero

the whole chain from here to here is Net

Zero so we needed to pick one point in

the chain and say we aim to be Net Zero

for this point in the chain and if the

same could be done for all the oil gas

and coal at the same point in the chain

then the energy system would be net zero

for all of the carbon flowing through it

and we picked the point of production

over here where the oil and gas comes

out of the ground it makes sense for us

because most of our investment goes into

oil and gas production which over time

we aim to shift towards our non oil and

gas businesses and for the world to

reach Net Zero absolute reductions in

oil and gas will be needed finally this

approach is probably the most

straightforward - the easiest for people

to understand and to account for now as

well as producing oil and gas we also

supply a lot of energy products to

consumers gas power and fuels like

gasoline and jet fuel this is shown by

this big arrow here

the green part of the arrow is the

products we sell that are made from our

own oil and gas production the red part

is the products we buy in from someone

else

meaning that another producer got them

out of the ground you can see that the

red part is much thicker than the green

part that's because much more of what we

sell comes from someone else's oil and

gas I'll explain what we're aiming to do

about the products we sell in a moment

but first let's take a moment to think

about what's needed for us to be a

NetZero company for the whole energy

system to be Net Zero it needs to get to

Net Zero for the carbon flowing through

it and for all the operations along the

way our aim one is to be Net Zero for

our part of those operations and our aim

2 is to be Net Zero for a share of the

carbon flowing through it the green part

of the arrow I've explained that we only

needed to pick one point in the chain

for the carbon so put aims 1 and 2

together and you've got a Net Zero

company because we're aiming to do

something which would make the whole

system Net Zero if they happened for the

rest of the operations and carbon in the

system - so to become a Net Zero company

we don't believe it's necessary for us

to aim for Net Zero for someone else's

oil and gas production the red part of

the arrow as well as for our own we

don't think that would make sense

turning now to how we go about reducing

carbon here you can see some of the

potential levers the world can use to

get the energy system to Net Zero such

as offsetting and carbon capture use and

storage these are useful and necessary

parts of the solution but it's not

realistic to rely solely on offsetting

there must be a transformation of the

whole energy system including all the

ways energy is used because if that

doesn't happen just taking out most of

the carbon will leave the world

massively short of energy leaving cars

trucks planes and ships with no usable

fuel homes with no heat

this transformation needs everyone to

play their part producers sellers

policymakers and everyone who uses

energy and we plan to play a leading

role

aim three so in addition to aims one and

two to get BP to net zero we have a

third aim to cut by half the carbon

intensity of what we sell by 2050 or

sooner carbon intensity is the amount of

carbon emitted per unit of energy

consumed as well as our own products

that takes into account the products we

sell that produced by others you can see

here some of the levers we can use to

cut carbon intensity such as selling

more electricity to evey drivers and

providing more wind or solar power to do

this at the scale needed will require

consumers to change behaviors and choose

low or zero carbon products and that in

turn needs to be supported by government

policies don't make those products

widely available and affordable and

attractive to customers someone whose

vehicle isn't electric won't buy

electricity to power it we hope this

helps to explain the thinking behind the

first three aims that support our Net

Zero ambition we have another seven aims

which haven't been covered in this film

you can find details of all ten at BP

dot-com slash re-imagined thanks for

watching let us know what you think

either in the comments box or on social

media