BP is making some drastic changes by cutting oil and gas production by 40% in the next decade and investing billions into renewable energy. These changes will help the company transition to net zero emissions by 2050.
The company anticipates that the next decade will be the most critical if the world wants to meet climate goals. The energy sector, in particular, has a lot of changing to do. Not only to fight climate change but to survive as a company.
These changes come after the company shares a huge $16.8 billion dollar loss in the second quarter.
Why The Change Now
The push for renewable energy is no longer a dream, it is an inevitability.
Renewable energy sources like solar and wind are simply getting cheaper, more efficient, and most importantly, too popular for any oil company to ignore. Customers are calling for companies to use more or exclusively clean energy in their production lines.
As a result, oil companies are beginning to decline. And the effects of COVID-19 have made matters even worse for the company.
BP sees the writing on the wall and is beginning to ramp up its own renewable energy offerings around the world.
The Time Is Right for Renewable Energy
One thing is very clear, most nations around the world will be focusing on renewable energy and green projects to recover from COVID-19. This also includes upping incentives to once again buy electric vehicles.
That does not help oil companies at all, in fact, it’s the equivalent of another nail in the coffin.
Climate conditions continue to worsen as temperatures reach unprecedented levels, huge ice sheets melt, and wildlife fails to cope with these changes. The effects of climate change are already here, but there is still time to mitigate the damage.
These companies need to transition and there really is no better time to do it.